Published date: 12/20/2022
So, you’ve got yourself a prevailing wage job… Congrats! You grab a WH-347 form, enter all your project and employee information, check that the hours, wage rates, and deductions are correctly applied (or so you believe), and then you go to submit it… But wait!
You remember: a Statement of Compliance (SOC) must be filled out and attached to the form before sending it in.
You take one look at the language on the SOC and realize it looks strikingly similar to… No, that can’t be right… It almost looks as if it’s some kind of… wait, is this… a contract?
“I [Name of Signatory Party]… do hereby state… That I pay or supervise the payment of the persons employed by [Contractor/Subcontractor]… that during the payroll period commencing on the [date]…all persons employed on said project have been paid the full weekly wages earned…”
And so on, and so forth…
Then two realizations hit you:
- The fields on this document ask for a lot of the same information that you JUST entered on the WH-347 attached to it.
- The language appears… legal in nature. Why does this feel like it’s asking me to give an oath before a court?
What You are Signing When You “Certify” a Payroll
The Statement of Compliance is the second part of the WH-347 certified payroll report (CPR) that must be completed and submitted along with every certified payroll. This form indicates that, to the best of your knowledge, the payroll information you entered is complete and accurate. By filling out the SOC, you are attesting that every laborer and mechanic has been paid no less than the proper Davis-Bacon prevailing wage rate per the appropriate classification on the wage determination(s) provided by the awarding body.
But here is the thing: Although this form does not need to be notarized, you are still submitting this form under penalty of perjury. And knowingly submitting false information can potentially lead to repercussions for the individual submitting it. Sure, in most trivial cases, fines and penalties would be assessed to the contracting entity. But in egregious cases, courts can put individuals under a finer microscope – if deemed necessary. And in the absolute worst cases, prison time is potentially on the table.
Bottom line? It is important to know what you, as a compliance professional, are doing and submitting. So, let’s take a look at the basics of the SOC form.
Breaking Down the SOC
The SOC form is split into four sections.
Section 1: You will enter the date that you completed the form as well as your name and title. This should be completed by a principal of the firm – like the owner, president, treasurer, or payroll administrator. Under those lines, you will enter the name of the contracting company, the project name or number, and the beginning and ending dates of that payroll workweek. These dates must match the dates on the corresponding WH-347 form. At the bottom of section 1, there are lines available for the signatory to write any additional notes. This part is not mandatory, it is simply optional.
Sections 2 and 3: These sections do not require you to enter any information. They are simply statements that you are acknowledging by signing the document. The signee is attesting that all deductions have been properly calculated.
Section 4: Here, you will notate how you are paying fringe benefits to your employees. Section 4 is broken down into 3 subsections labeled: boxes 4(a), 4(b), and 4(c).
- Boxes 4(a) and 4(b): If you are paying fringes to an approved plan, fund, or program, then you must check box 4(a). However, if you are paying fringes in cash, directly to your employees, then you must check box 4(b).
- Box 4(c): If you are using a combination of these two methods, then you must check this box. If you check box 4(c), then you must also record exactly how you are paying the fringe benefits in the chart provided labeled “EXCEPTIONS.”
In the box just below the “EXCEPTIONS” chart, a principal of the firm must sign their name. This attests – again, under penalty of perjury – that everything on the form is correct and complete to the best of the principal’s knowledge.
Once all the information has been checked for accuracy, you must submit the Statement of Compliance, along with the WH-347 form, to the USDOL. Need a refresher on how exactly to fill out a WH-347 form? Check out our one-page guide here.
These materials are being issued with the understanding that LCPtracker is not engaged in rendering legal or other professional services and is providing these for informational purposes only. If legal, accounting, or tax expert assistance is required, the services of a competent legal, accounting or tax professional should be sought.