10/07/2026
After years of reviewing payrolls on federally funded projects, I see the same issues over and over. Here are four to check before you submit:
1️⃣ Wrong classification. A worker’s classification has to match the work they actually performed, not their title on your crew. A laborer doing carpentry gets the carpenter rate for those hours.
2️⃣ Fringe benefits that don’t add up. If you’re claiming credit for benefits paid into a plan, you need documentation to back it up. Otherwise the full fringe amount has to be paid in cash.
3️⃣ Apprentices who aren’t registered. Only apprentices in a registered program, within the allowed ratio, can be paid apprentice rates. Everyone else gets the full journeyworker rate.
4️⃣ Missing or unsigned Statement of Compliance. A payroll without a signed certification isn’t certified, and it will come back to you.
Catching these early saves you from restitution, delayed payments, and stressful audits at closeout.
What’s the most frustrating payroll issue you’ve run into on a federal job? 👇
LaborCompliance