22.406-6 Payrolls and statements
Source: FAR 22.406-6 on acquisition.gov
Contractors must submit accurate weekly payrolls and compliance statements within 7 days, or risk payment withholding and increased scrutiny from contracting officers.
Overview
FAR 22.406-6 outlines the requirements for contractors and subcontractors to submit weekly payrolls and statements of compliance for contracts subject to labor standards. Contractors must submit these documents within 7 calendar days after the regular payment date for each payroll week, using either the Department of Labor Form WH-347 or a similar form. The contracting officer is responsible for examining these payrolls for compliance, focusing on classifications, wage rates, fringe benefits, hours worked, deductions, and employment ratios. If payrolls are not submitted promptly, the contracting officer may withhold payments to protect the interests of the government and employees. Payroll records must be retained by the agency for three years after contract completion and protected from unauthorized disclosure, with special attention to privacy and proprietary information. Questions about disclosure may involve the Freedom of Information Act (FOIA).
(a) Submission. In accordance with the clause at 52.222-8, Payrolls and Basic Records, the contractor must submit or cause to be submitted, within 7 calendar days after the regular payment date of the payroll week covered, for the contractor and each subcontractor, (1) copies of weekly payrolls applicable to the contract, and (2) weekly payroll statements of compliance. The contractor may use the Department of Labor http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3" target="_blank">FormWH-347, Payroll (For Contractor’s Optional Use), or a similar form that provides the same data and identical representation.
(b) Withholding for nonsubmission. If the contractor fails to submit copies of its or its subcontractors’ payrolls promptly, the contracting officer shall, from any payment due to the contractor, withhold approval of an amount that the contracting officer considers necessary to protect the interest of the Government and the employees of the contractor or any subcontractor.
(c) Examination.
(1) The contracting officer shall examine the payrolls and payroll statements to ensure compliance with the contract and any statutory or regulatory requirements. Particular attention should be given to-
(i) The correctness of classifications and rates;
(ii) Fringe benefits payments;
(iii) Hours worked;
(iv) Deductions; and
(v) Disproportionate employment ratios of laborers, apprentices or trainees to journeymen.
(2) Fringe benefits payments, contributions made, or costs incurred on other than a weekly basis shall be considered as a part of weekly payments to the extent they are creditable to the particular weekly period involved and are otherwise acceptable.
(d) Preservation. The contracting agency shall retain payrolls and statements of compliance for 3 years after completion of the contract and make them available when requested by the Department of Labor at any time during that period. Submitted payrolls shall not be returned to a contractor or subcontractor for any reason, but copies thereof may be furnished to the contractor or subcontractor who submitted them, or to a higher tier contractor or subcontractor.
(e) Disclosure of payroll records. Contractor payroll records in the Government’s possession must be carefully protected from any public disclosure which is not required by law, since payroll records may contain information in which the contractor’s employees have a privacy interest, as well as information in which the contractor may have a proprietary interest that the Government may be obliged to protect. Questions concerning release of this information may involve the Freedom of Information Act (FOIA).