Public works contracts and Certified payroll California

Status
Not open for further replies.

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
Does anyone know if Certified payroll requirments apply in a situation of a Public works job where a Contractor being a Sole prorietor does all the work himself?

Does he need to prove he paid himself the prevailing wage?

I wonder how a company with employees can compete with such a competitor?
 

iMuse97

Senior Member
Location
Chicagoland
Does anyone know if Certified payroll requirments apply in a situation of a Public works job where a Contractor being a Sole prorietor does all the work himself?

Does he need to prove he paid himself the prevailing wage?

I wonder how a company with employees can compete with such a competitor?

If he's such a great competitor, more power to him. But AFAIK, he needs to show wages to himself from the company at the prevailing rate. That would be SOP in this region.
 

jusme123

Senior Member
Location
NY
Occupation
JW
If he's such a great competitor, more power to him. But AFAIK, he needs to show wages to himself from the company at the prevailing rate. That would be SOP in this region.

I do not agree with you, does OSHA apply to a one man shop (owner only)?
 

iMuse97

Senior Member
Location
Chicagoland
I do not agree with you, does OSHA apply to a one man shop (owner only)?

Again, around here I've seen the owner fined. $10,000. For his own work. Didn't help that he was in the parking lot next to the regional offices of OSHA. :) It was the second violation.
 

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
If he's such a great competitor, more power to him. But AFAIK, he needs to show wages to himself from the company at the prevailing rate. That would be SOP in this region.

so how is that supposed to work. ? A sole proprieter has no payroll.
 

WorkSafe

Senior Member
Location
Moore, OK
Again, around here I've seen the owner fined. $10,000. For his own work. Didn't help that he was in the parking lot next to the regional offices of OSHA. :) It was the second violation.

OSHA has no jurisdiction over self-employed contractors.

OSHA said:
Question 1: Can OSHA cite a self-employed individual working on a construction site for violations of OSHA construction standards?

Answer: No. If a construction worker is truly self-employed ? is not an employee ? and has no employees working for him or her, OSHA has no authority to require that individual to abide by OSHA construction requirements.

http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=INTERPRETATIONS&p_id=24317
 

jusme123

Senior Member
Location
NY
Occupation
JW
Everyone on the PW project has to turn in proof of certified payroll. Whether it's the owner or not.

What if I was a sole proprietor, with no employees, and had a prevailing rate job with total labor worth $10,000, I submit a payroll of 10 hours at a rate of $1,000 per hour for myself? The actual hours to complete the entire job are around 40 hours, who is going to tell me I am wrong?
 

maghazadeh

Senior Member
Location
Campbell CA
OSHA has no jurisdiction over self-employed contractors.

I agree with that.

Sierrasparky
Public works contracts and Certified payroll California

Does anyone know if Certified payroll requirments apply in a situation of a Public works job where a Contractor being a Sole prorietor does all the work himself?

Does he need to prove he paid himself the prevailing wage?

Yes, self-employed with no employees need to submit certified payroll for themself, however on the column asking for paycheck # you can write exampt.


jusme123
What if I was a sole proprietor, with no employees, and had a prevailing rate job with total labor worth $10,000, I submit a payroll of 10 hours at a rate of $1,000 per hour for myself? The actual hours to complete the entire job are around 40 hours, who is going to tell me I am wrong?


You can put down your hourly rate whatever you like, but not less than rate determined by prevaling wage rates for the certain classification.
 

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
Yes, self-employed with no employees need to submit certified payroll for themself, however on the column asking for paycheck # you can write exampt.





You can put down your hourly rate whatever you like, but not less than rate determined by prevaling wage rates for the certain classification.


So how do you deal with taxes and such?
Do you need to set up with EDD?
Do you need workers comp for yourself?
 

maghazadeh

Senior Member
Location
Campbell CA
Sierrasparky
So how do you deal with taxes and such?
Do you need to set up with EDD?
Do you need workers comp for yourself?

On the certified payroll form (as a self employed) you only need write your name, last name, address, SS#, rate of pay per hour, total pay for the week, total hours worked for that week, start date and finish date of the week. Leave all other columns that deals with taxes blank and on the last column where ask about payroll check #, write exempt.

Best is to classify your self as Journeyman-inside wireman and find out what the payrate should be in your county.
No need for EDD and no need for workers comp. But GC, PM, or public agent may request to see proof of some sort of insurance for yourself in case of an accident.
 

iMuse97

Senior Member
Location
Chicagoland


Not to hijack the thread too badly, but this guy did get fined. I know him. Talked to him, and heard what his guys said about it, too.

Most ECs around here are C Corp. and the CEO is also receives a paycheck just like all the other blokes. He/she is paid and covered under workmen's comp. just like all the employees.

This also makes it easy for him to pay himself a prevailing wage. And thanks for the link.
 
Last edited:

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
On the certified payroll form (as a self employed) you only need write your name, last name, address, SS#, rate of pay per hour, total pay for the week, total hours worked for that week, start date and finish date of the week. Leave all other columns that deals with taxes blank and on the last column where ask about payroll check #, write exempt.

Best is to classify your self as Journeyman-inside wireman and find out what the payrate should be in your county.
No need for EDD and no need for workers comp. But GC, PM, or public agent may request to see proof of some sort of insurance for yourself in case of an accident.

Looking at the cert form I see they want all the taxes paid. I would like to see a rule that says you are exempt!
 

Strife

Senior Member
You won't even need to do that.
If you're sole proprietor and the one doing the work you can pay yourself a salary and be exempt.

What if I was a sole proprietor, with no employees, and had a prevailing rate job with total labor worth $10,000, I submit a payroll of 10 hours at a rate of $1,000 per hour for myself? The actual hours to complete the entire job are around 40 hours, who is going to tell me I am wrong?
 

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
You won't even need to do that.
If you're sole proprietor and the one doing the work you can pay yourself a salary and be exempt.

I don't believe that to be true. Even if paid salary you must prove equal or greater than the current prevailing wage. Most forget that you must pay the additional items such as the "health and wlefare" and other items in addition to!
 

Strife

Senior Member
I don't believe that to be true. Even if paid salary you must prove equal or greater than the current prevailing wage. Most forget that you must pay the additional items such as the "health and wlefare" and other items in addition to!
What do you mean by "Welfare"? ( I assume wlefare was a misspel for welfare?)
I know I don't live in california, but I'm not aware of a welfare tax?
 

gadfly56

Senior Member
Location
New Jersey
Occupation
Professional Engineer, Fire & Life Safety
What if I was a sole proprietor, with no employees, and had a prevailing rate job with total labor worth $10,000, I submit a payroll of 10 hours at a rate of $1,000 per hour for myself? The actual hours to complete the entire job are around 40 hours, who is going to tell me I am wrong?

Usually you have to sign in at the work site. And the GC is going to want to see copies of your certified payroll before he releases payments.
 

gadfly56

Senior Member
Location
New Jersey
Occupation
Professional Engineer, Fire & Life Safety
You won't even need to do that.
If you're sole proprietor and the one doing the work you can pay yourself a salary and be exempt.

Not true. If you touch a tool, you get paid the rate for the work you're doing. The only break we get is that programming is generally not covered by prevailing wage, so when the techs are programming the fire alarm panels they get their standard rate. Even as an engineer and normally an exempt employee, if I pull out a screwdriver to work on something I'm supposed to get paid the prevailing rate for a journeyman.
 

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
Not true. If you touch a tool, you get paid the rate for the work you're doing. The only break we get is that programming is generally not covered by prevailing wage, so when the techs are programming the fire alarm panels they get their standard rate. Even as an engineer and normally an exempt employee, if I pull out a screwdriver to work on something I'm supposed to get paid the prevailing rate for a journeyman.


Now were getting somewhere.
So as to my earlier question how does a soleproprieter deal with the taxes and the other beni's that are part of the prevailing wage.
I am a sole proprieter and do not do payroll anymore as I have reduced the company to myself. If I need employees I will use a temp agency that Has plenty of certified electricans to choose from.


Do i need workers comp. I know state fund exempts the owner.
Do I need to pay witholding and do the EDD thing?

THanks
Happy Holidays.
 
Status
Not open for further replies.
Top