A Complete Certified Payroll Solution
If your company processes payroll in excess of $2,000 for employees working on government funded construction projects, Certified Payroll reporting will be required to comply with the Davis-Bacon Act.
To be in compliance, it is important to know the “prevailing wage” rates for the contract, and how to generate and submit the appropriate reports. Your Payroll software plays a critical role in managing this process.
Here are a few things to look for in a certified payroll solution:
- A Rate File
Because there are differing rates based on the locale, as well as the different classifications of work, keeping track of the appropriate pay rates is best automated using a rate file. This will allow the payroll system to define appropriate rates by any combination of job, phase, work classification, and union. Pay rates and fringe benefits for certified jobs are likely to be different from non-certified jobs. - Certified Jobs automatically utilize certified rates.
With the rate file implemented, the payroll system automatically selects the appropriate rates based on the defined criteria. This eliminates the need to manually key the appropriate rates and all the potential data entry errors that come with it. There may be cases where an employee is making more than the prevailing rates. The payroll system should be able to compare the employee’s standard rate with the defined certified rates, to select the higher of the two. - Certified reporting is included in Payroll
A construction payroll system must be able to generate the mandatory certified payroll reports for the various agencies. These reporting tools should be integrated, making it a simple part of the routine payroll process.
If you are struggling with certified payroll requirements, we would invite you to let Intersoft Systems show you how the INTERAC Construction Payroll System can make it easy. Our Construction Payroll system is tailored to the unique requirements of the construction trades and integrates with our complete INTERAC Construction Accounting System.
