What is certified payroll?
Contractors and subcontractors that work on government funded projects have to comply with Davis-Bacon and Related Acts. To be compliant, these companies must follow all regulations regarding prevailing wages and fringe benefits. In California, additional requirements revolve around reporting, including certified payroll reporting to the Labor Commission using the Department of Industrial Relations (DIR) online system.
Why is certified payroll so difficult?
Certified payroll is a tedious and error prone process. Researching and identifying the correct work classifications and wage determinations for the project can be a challenge. Especially when governing agencies incorporate predetermined increases or change the wage determination all together. The proper classification of each employee for each hour of each day on the job can take hours over the course of a pay period if you are using manual timesheets.
The process to create the certified payroll reports can be just as tedious. Many contractors have to manually re-key all of the payroll information into the proper forms for each employee. Even if you’re using typical certified payroll software, it only helps generate the report. Most existing certified payroll software do not validate the accuracy of the report but just the submission which can be rejected by the General Contractor or Agency. Finally, anyone who has performed certified payroll for any amount of time knows how painful a restitution process can be. The entire certified payroll reporting procedure is filled with duplicated data entry and prone to simple unintentional mistakes.
Simplified Payroll Solutions
eBacon is your construction company’s best friend, simplifying how you handle payroll for construction projects. Our goal is to help you get back to what you do best! Our certified payroll service features sophisticated software that streamlines all aspects of your payroll process, including:
Tracks time 8 different ways
Assigns prevailing and fringe rates
Performs city shifting calculations
Integrates with time and payroll systems
Creates WH347, EEO and city specific reports.
Process payroll with direct deposits, pay cards and tax payments
Additional certified payroll requirements
Davis-Bacon and Related Acts are federal laws, but some states have additional requirements that effect construction companies and service providers that perform government funded work. For instance, any project involving a California awarding body must comply with prevailing wage rates specific to California. We’ve compiled a list of resources to help you stay up to date with state prevailing wage laws.
Are you in the construction industry and looking for a certified payroll solution?
Learn more about our construction payroll software today.