What to Know About Certified Payroll for 1099 Employees

If you are an everyday person, you are probably not too familiar with certified payroll. However, a certified public accountant (CPA) knows better than anyone why certified payroll is important. If you do personal accounting work for federal contractors, you may want a refresher on the importance of certified payroll for 1099 employees.



What is Certified Payroll?

Certified payroll is better understood as a federal payroll report. If you do accounting work for a federal contractor, it is important to remind them that they are expected to submit federal Form WH-347 on a weekly basis. Federal contractors give the form to the agency who monitors the government contract. Remind them that the form shows the list of employees, their wages and benefits, the type of contracted work, and the total number of hours spent on a project. Federal Form WH-347 provides details on withholding and gross wages. The form provides a statement of compliance.


Why is Certified Payroll Important?

As a CPA, it is easy to feel disenfranchised by the paperwork that comes across your desk. It is important to not overlook the importance of certified payroll for 1099 employees. The reason the form matters is it shows compliance. Any government-funded public works project requires the federal contractor to pay an employee the established wage. It is important as a CPA that you can prove your client is meeting the form’s requirements.


Has Certified Payroll Changed in 2021?

There are no major updates to certified payroll in 2021. The US Congress made its last notable change in 2019. Congress introduced S.2302, known as America’s Transportation Infrastructure Act. The House of Representatives passed the act, which supported funding for highways and enhanced bridge and road safety. If the US Senate eventually passes the bill, it would provide $287 billion in project investments. Construction companies who use construction payroll software will also benefit from the bill passing as they apply for the government-funded projects.



Why Use AMS Software for Certified Payroll for 1099 Employees?

As we mentioned previously, all the forms can feel overwhelming. That is why all CPAs not only need, but also deserve a reliable software program. Our software at Advanced Micro Solutions is reliable and easy to install. There is no need to worry about losing your data through iCloud malfunctions. Our software is disc-based, and that includes our Payroll Software.

Our Payroll Software is an add on module to our W-2/1099 Forms Filer. That means whether you are filing forms for your federal contractor or another client, you can enter with checks at any point throughout the year. There are a number of specific features included in our payroll reporting. As a CPA, you can easily print your client letters. Additionally, you can organize any certified payroll reports. Since our payroll reporting includes certified payroll, it is easier than ever to keep client forms organized. Make sure to review our FAQs page before making any final decisions when filing certified payroll for 1099 employees.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.