Important Concepts: Certified Payroll Report Use and Analysis

Labor Code §1776(a) states in part;  

Each contractor and subcontractor shall keep accurate payroll records, showing . . .each day and week, and the actual per diem wages paid . . . IN CONNECTION WITH THE PUBLIC WORK.  . . .

Labor Code §1773.1 (a) defines "per diem wages" to include all wages as well as any fringes (contributions).

Before you begin, please take the time to gather your thoughts around the important concepts illustrated below on this page. 

Once you do this, you will see how the analysis on the following pages really works and how powerful the "cpr tool" truly can be.

Notice the color-coded sections.

  • Deductions” (peach) are based on gross wages earned by the worker on all projects combined for the whole week (all projects)
  • “Fringes" or "Contributions/Payments" (yellow) are limited to the amounts contributed for the hours worked for this project only.

reports use

  • Wages paid to the worker for the week are always split into the 2 fields of section (7). It is from these two different sections that comparisons are made by an LCP payroll analyst to total fringes paid and total deductions taken. (See Analysis 1 & 2 on following pages for understanding of these important distinctions.)

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  • Another area that is sometimes misunderstood is the correct amount to be inserted into the field "Hourly Rate of Pay" (Field 6). The correct amount is the actual amount paid per hour to the worker on the paycheck and does not include any other amounts contributed on behalf of the worker.

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