ERC 1099. Certified Payroll Employees, 1099 Workers & Subcontractors 24 Apr 2012 by Nancy Smyth Certified Payroll reporting requirements for employees, 1099 Any government-funded public works project requires the federal contractor to pay an employee the established wage. Consult classification and minimum wage schedule set forth in contract specifications. However, workers such as timekeepers, inspectors, architects or engineers, or anyone exempt under the part 541 regulations under the Fair Labor Standards Act, are generally not considered laborers or mechanics and, therefore, are not required to be paid prevailing wages because they do not generally perform primarily physical or manual work or use the tools of a trade. Therefore, with just a few exceptions that are not likely applicable to the BIL, when a state or local agency receives funding covered under a Davis-Bacon Related Act but chooses to perform the work with its own employees, it does not have to pay agency employees Davis-Bacon prevailing wages. Employees should be questioned regarding other employees they worked with as well as the duties performed and hours worked by those employees. Contributions should not be attributed solely to the employees work on projects covered by Davis-Bacon labor standards. If the apprenticeship agreement explicitly states that a percentage applies to fringe benefits, or specifically states a lower fringe benefit amount that can be similarly applied to fringe benefit rate in the applicable wage determination, then the contractor may apply that percentage to the fringe benefits listed in the wage determination. Make sure to review our FAQs page before making any final decisions when filing certified payroll for 1099 employees. A payroll system for your small business like OnPay will ensure you have the features you need to pay your employees on time. Before sharing sensitive information, make sure youre on a federal government site. Copyright 2000-2021. Although many apprenticeship agreements provide a percentage of the journeyworker rate due for each level of apprenticeship, sometimes the agreements only list the rates paid to apprentices and the rate paid to journeyworkers.