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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.

- 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.)

- 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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