are we required to request certified payrolls to company owners performing subcontracting work?
Yes, you are required to request certified payrolls from subcontractors.
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From the Government perspective, FAR 22.406 covers administration and enforcement of the Davis-Bacon Act and details what contract agencies are required to do to maintain an effective enforcement program. FAR 22.406-1(a)(1) requires contracting agencies to ensure that contractors and subcontractors are informed before commencement of work of their obligations under the labor standards clauses. FAR 22.406-1(a)(2) includes “adequate payroll reviews” in an effective enforcement program. FAR 22.206-7(b)(3) details compliance checking by the contracting officer and states “Payroll reviews to ensure that the payrolls of prime contractors and subcontractors have been submitted on time and in compliance with contract requirements.”
From the contract perspective, in accordance with FAR 22.407 any construction contract performed in the US over $2,000 must include (among others) the following clauses: 52.222-6 “Davis-Bacon Act”, 52.222-8 “Payrolls and Basic Records”, and 52.222-11 “Subcontracts (Labor Standards). “
52.222-11 is the clause that flows down the requirements of Davis Bacon 52.222-6 and the Payroll and Basic Records 52.222-8 clauses to the subcontractors. 52.222-11(c) makes the prime responsible for subcontractor compliance with the flow down clauses.
52.222-8(b)(1) requires weekly submission of all payrolls to the contracting officer and therefore this would include subcontractor payrolls. Paragraph (b)(2) requires the certification or “Statement of Compliance” by the authorized company representative.