Flags memo — DEMO (fictional data)

To: Owner, Summit Ridge Electrical LLC
From: Certified payroll check — week ending Sunday, November 1, 2026
Project checked: A — Riverside Elementary School Modernization (federal, Davis-Bacon)

Do not sign the Statement of Compliance until the three fixes below are paid. The WH-347 in this pack (the corrected pack) is already corrected — it shows the wages as they must be paid. Your payroll as first run paid less. The difference is $828.40, owed to three workers as restitution for this one week, on this one project.

Flag 1 — Dana Ortiz paid below the prevailing rate — $80.00 owed

• What the sheet showed: Electrician at $48.75/hr ($36.00 base + $12.75 fringe) for 32 hours on Project A.
• What the wage determination requires: $51.25/hr ($38.50 base + $12.75 fringe).
• The math: $2.50/hr short × 32 hrs = $80.00.
• Likely cause: payroll still carries her pre-update rate. Fix the rate in payroll, not just this week, or the same flag fires every week she is on a prevailing-wage job.

Flag 2 — Tom Becker classified as a Laborer while doing Electrician work — $548.40 owed

• What the sheet showed: Laborer at $28.40/hr for all 40 hours on Project A.
• What the daily notes showed: Tuesday–Thursday he was "running conduit + pulling wire w/ Marcus" — that is electrician work, and Davis-Bacon pays the classification of the work actually performed, not the worker's usual title.
• The math: 24 hrs × ($51.25 Electrician − $28.40 Laborer) = 24 × $22.85 = $548.40.
• The corrected WH-347 splits his week: 16 hrs Laborer ($454.40) + 24 hrs Electrician ($1,230.00) = $1,684.40. Split classifications inside one week are normal on a WH-347 — this is exactly the entry a timesheet-to-form copy would have missed.
• Standing fix: when a laborer is assigned electrical tasks, the foreman's daily note should carry the task, not just the hours. That note is what caught this.

Flag 3 — Luis Herrera paid base wage only, fringe missing — $200.00 owed

• What the sheet showed: Laborer at $22.15/hr for 32 hours on Project A, fringe column blank.
• What the wage determination requires: $22.15 base + $6.25 fringe = $28.40/hr. Fringe paid in cash still has to be paid — a blank column is not an exemption.
• The math: $6.25/hr × 32 hrs = $200.00.
• Standing fix: fringe is part of the rate in the payroll system for every prevailing-wage classification, not a separate manual line someone has to remember.

Totals — they reconcile to the pack

One basis note, so the net line is not misread: on the current WH-347, deductions (Column 8) and net (Column 9) are shown for all work in the week, never pro-rated to one project — so the corrected net above is the workers' whole-week pay (Project A plus the California job), not a Project A figure. The three flags and the $828.40 are Project A only, exactly as itemized.

Checked and clear this week: every other worker's rate matches the determination; apprentice Whitfield is registered and paid at the correct Period 3 rate (60% of journeyman base, full fringe); nobody crossed 40 hours across both jobs, so no overtime question arises; Project B hours (66 hrs) are excluded from this form's hours columns and belong on the California filing for that project — the week's Project B earnings still enter the pack at Column 7(b), because the form carries gross, deductions and net for all work.

What happens next, in the real service: you pay the $828.40, we note the restitution on the next payroll, you review and sign the Statement of Compliance, and the pack goes to the prime in the format this project demands. We prepare and check. You sign. That line does not move — the certification is yours, and it carries legal weight (see the Verification Memo).

Worked example — source files

Trace the $828.40 end to end: the source timesheet, as received (CSV) · the corrected pack (WH-347) · this flags memo. All fictional, built as one worked example for demonstration.

All names, companies, projects and wage figures in this memo are fictional and created for this demonstration. The arithmetic is real and reconciles line by line to the source timesheet and the corrected pack in this demo.