# Prevailing wage question



## Marson (Jun 3, 2007)

I'm putting together a project right now that is going to require us to pay prevailing wage. 

I think I have the nuts and bolts of it down pretty well (I'm married to a CPA) but what I can't figure out is how it would apply to the one man shops we have bidding on some of our projects.

For example, what if a plumber (one man shop LLC) decides to bid. Fine, he can submit a certified payroll showing that he paid himself the Davis Bacon wages. But what if he bid the job to take say 100 hours, and it requires 150 hours? Seems like he either has to lie on his payroll or else take it in the shorts on this one job.

Anyone run into this?


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## Framer53 (Feb 23, 2008)

A one man shop would not have to pay himself the prevailing wages if he does not have a payroll.

The law applies to employees.


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## Mr Latone (Jan 8, 2011)

Review the documentation required in your state for rate jobs. The required forms should outline exemptions, exceptions and the basic information the GC is required to maintain.


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## Kgmz (Feb 9, 2007)

Framer53 said:


> A one man shop would not have to pay himself the prevailing wages if he does not have a payroll.
> 
> The law applies to employees.


That is correct in most jusridictions.

For example we have a lot of independent owner/operator dump trucks around here, so it is a one man company with one dump truck. They are exempt after they fill out a form and don't have to do any more paper work.


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## fireguy (Oct 29, 2006)

Framer53 said:


> A one man shop would not have to pay himself the prevailing wages if he does not have a payroll.
> 
> The law applies to employees.


 
And if your wife is an employee, she gets Davis Bacon. According to my bookkeeper


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## Marson (Jun 3, 2007)

Framer53 said:


> A one man shop would not have to pay himself the prevailing wages if he does not have a payroll.
> 
> The law applies to employees.


By "one man shop" I mean a one person S-Corp or LLC. We don't let sole proprietors bid since we would have to pay work comp if they worked for us. 

Some of them are paying themselves payroll I'm thinking. I could be wrong though.


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## Solar Control (Jan 27, 2009)

Marson said:


> By "one man shop" I mean a one person S-Corp or LLC. We don't let sole proprietors bid since we would have to pay work comp if they worked for us.
> ...


Not trying to make the issue more confusing, but the one man LLCs are not treated any differently than a sole-proprietorship for tax purposes. You should verify that with work comp they are treated differently in your state.

Their W-9 will state whether they file as a disregarded entity (only one owner). If they do, then you need their social security number and not their ein. For more information on disregarded entity click here and the official irs.gov site also has more. (neither link addresses work comp issues)


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