Government Certified Payroll

[JG EA]

I have a question about this. My client is doing a government job as a subcontractor (through his S Corp). We have to fill out this form to show he is getting proper wages. He now takes a salary from his corp.

Is the best thing to do is pay him by hours for this particular job so we have the information to fill out the form - it has to be filled out weekly - and then just make up the difference in salary at the end of each month?

[BHoffman]

JG - I would advise taking the path of least resistance, so I agree with you regarding the wages being reported as hourly and in the format that will faciliate the government's processing.

[JG EA]

Thank you very much for your reply!

[Edsel]

Govt Contracts

require reporting in hours thus the hours and hourly rate become the base for cost and billings. This is universally true in defense contracts, and most of the other agencies are structured the same way.

"Government certified payroll" indicate this may be a cost-reimbursable type contract. This may indicate that a government analyst must sign off on it before the billing can be accepted.

[JG EA]

Well my client is ultimately being paid as a sub-contractor. he won't even bill for a couple of weeks So, then should all his projected income be accounted for in weekly wages? I'll find out if he'll have material costs - don't know at this time.