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Maverick, Attorney
Category: Business Law
Satisfied Customers: 6422
Experience:  20 years of professional experience
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We are a new company (1/2009). Recently weve been asked to

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We are a new company (1/2009). Recently we've been asked to provide certified payroll (we coccaisionally work at a union site and have just started working as a sub-contractor on government locations like DMV's). Currently, we are three owners and no employees. Where do we start?

We will be adding 2 employees in July. Does this change or complicate certified payroll?


Basically there are two components to the certified payroll reporting process. First you have to provide the payroll information in a form or format that the goverment/public entity requests and second, it has to be certified by an authorized agent of your company and often requires a statement like the one below:


" I, (insert name), the undersigned, am (insert title of position with company) with the authority to act for and on behalf of (insert name of business and/or contractor). I certify under penalty of perjury that the records or copies thereof submitted and consisting of (insert description of documents and number of pages) are the originals or true, full and correct copies of the originals which depict the payroll record(s) of the actual disbursements by way of cash, check, or whatever form to the individual or individuals named."


Here is the part of the labor code that appears to be applicable to you:



d) Request to Contractor. The request for copies of payroll records by the requesting public entity shall be in any form and/or method which will assure and evidence receipt thereof. The request shall include the following:

(1) Specify the records to be provided and the form upon which the information is to be provided;

(2) Conspicuous notice of the following:

(A) that the person certifying the copies of the payroll records is, if not the contractor, considered as an agent acting on behalf of the contractor; and

(B) that failure to provide certified copies of the records to the requesting public entity within 10 working days of the receipt of the request will subject the contractor to a penalty of twenty-five ($25.00) dollars per calendar day or portion thereof for each worker until strict compliance is effectuated;

(3) Cost of preparation as provided in Section 16402; and

(4) Provide for inspection.

(e) Inspection of Payroll Records. Inspection of the original payroll records at the office of the contractor(s) pursuant to subdivision (b) of Section 1776 of the Labor Code shall be limited to the public entities upon reasonable written or oral notice.

NOTE: Authority cited: Sections 54, 1773.5 and 1776, Labor Code. Reference: Sections 1773.5 and 1776, Labor Code.


You can get the CA forms at the above link. Which forms you will need depends on the which public enitity is making the request.


The link above will give you a demo of the software that you can integrate with your accounting program to produce the certified payroll forms;


If you are three owners, you three may also be the employees depending on what type of business form you are operating under and whether or not you are paid a salary. If you add 2 employees than the will have to be included in the certification if they work on that public job. But it not be any harder to do for one employee or ten, once you have a system in place.

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