Certified Payroll Made Easy
If your company processes payroll for any employees working on government funded construction projects, the Davis-Bacon Act will almost certainly become a requirement for your payroll processing.
It applies to contractors or subcontractors working on federally funded or assisted contracts in excess of $2,000.
To be in compliance, it is important to know what the “prevailing wage” rates are for the contract, and how to generate and submit the appropriate reports. Payroll software will play a critical role in managing and streamlining this entire process. Following are a few things to look for in a payroll solution:
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 allows the payroll system to set up the appropriate rates by any combination of job, phase, work classification, and union. Pay rates and fringe benefits for certified jobs may be different from non-certified jobs.
Jobs which are designated certified automatically utilize certified rates.
With the rate file implemented, the payroll system selects the appropriate rates based on the defined criteria. This eliminates the need to manually key the appropriate rates and all the data entry errors and corrections that come with it. In cases where an employee may be making more than the prevailing rates, the payroll system should also 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 the Payroll reporting system.
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 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.
