The Davis-Bacon Act of 1931 requires construction companies to pay workers local prevailing wages and benefits. Most construction business owners understand that this requirement applies to them, however they are increasingly facing violations and repercussions. One cause of this increase is that government compliance checks have become more stringent in the last decade.
That's why your business needs to have an understanding of guidelines for certified payroll reporting and software that makes compliance easy. This approach can protect your business by providing accurate certified payroll reports, no matter the state you file in.
This software also provides many other benefits for your company. For example, it can save valuable staff time, and the money that staff time represents. But you cannot realize these benefits without knowing how to use the software, which is why we're here!
Below are five tips to help with certified payroll reporting guidelines to help you utilize your software of choice as efficiently as possible.
1. Understand Certified Payroll Reporting Requirements
Construction companies that incur penalties related to certified payroll reporting do so because they don't understand reporting requirements. This lack of clarity leads them to leave small information out of the report. Unfortunately, these little pieces of information can lead to significant consequences.
So let's cover some crucial facts about your certified payroll reporting needs. For example, let's say you employ laborers to complete federally-funded construction contracts. In these instances, your reports should include weekly WH-347 forms. Your state's laws could require you to submit further payroll reports.
As mentioned before, the Davis-Bacon Act requires construction companies to pay the prevailing wage at a minimum. This minimum includes the fringe benefits determined by the Department of Labor.
You can meet these requirements by paying your fringe benefits or providing benefit plans. You can also use funds, programs, or alternative payments to your covered workers.
You can communicate with the Department of Labor to determine what your business must include in its reports. This option can clear up any confusion you have on what to include.
2. Ensure Your Software Meets Your State's Requirements
The Davis-Bacon Act is a federal law, however states have separate policies and regulations that apply to your business, which is why following the mandatory guidelines closely and using certified payroll reporting software is so crucial.
Ensure your certified payroll reporting software meets your state's requirements in its analytics. You may struggle with this if you do business in multiple states. Or choose Certified Payroll Reporting® from Points North, which is supported by a team of professionals that assure that report formats are current as states and localities change their report formats or submission requirements.
Ensure your software keeps track of these changes by using this software. Certified payroll reporting programs can resolve many responsibilities for business owners and managers when it can accurately track data.
3. Understand Your Software's Limitations
Even the best certified payroll software has limits, so learn what you can rely on your software to do.
Using our Certified Payroll Reporting software provides several benefits. For example, our payroll integration works with your payroll provider to create a smooth reporting process. We also generate an unlimited number of signed prevailing wage reports with a single click. Furthermore, we provide access to report formats for federal, state, and local requirements.
Finally, you can count on our software to store and manage fringe data at several levels. As such, our software can solve many problems for your company. However, that doesn't mean you won't need any additional efforts. Remember, your software is a tool for your business, but like any other tool it's only as effective as its user.
Your responsibility is to understand the requirements of the law. You need to ensure your software produces compliant reports.
4. Ensure Workers Provide Accurate Information
Your certified payroll software needs accurate input to make reliable reports. Employees must provide the best data to ensure your software does its job, so train your employees to track their job classifications. For example, workers should understand the importance of correctly logging their hours and roles. Someone who spends half their day on carpentry and the other part driving deliveries should log these jobs separately.
Why does this matter? When job classifications change, so do their prevailing wage rates. This means a mistake in reporting how they spend their time can result in financial penalties later. Even worse, it could lead to potential penalties for your business.
Avoid this trouble by ensuring your workers understand why they need to record how they spend their time at work. Similarly, help them understand how the software works to help them remain compliant.
5. Create Standard Checklists for Your Staff
Every payroll cycle needs workers to follow various steps to produce accurate reports. These steps include collecting hours, checking data, guaranteeing correct pay and withholdings, and issuing paychecks.
Your prevailing wage work requires further steps, such as verifying your wage determinations. Your software can provide and track much of this information. However, businesses should keep a separate checklist to ensure maximum accuracy.
This checklist should detail every task workers must complete for the payroll cycle. In doing so, you can ensure that your company complies with all the relevant laws and regulations in your area.
Check off each completed task as you go through the list. After that, note any problems you encounter so you can remember to come back to them later. Comparing this checklist with one generated by your compliance software can help you measure accuracy.
Choose Certified Payroll Reporting® from Points North
The previously shared tips can help you manage your certified payroll reporting and remain compliant. Now you can pair that knowledge with our proven solution that you can rely on for payroll reporting. Our software also provides many services that can help you keep track of the laws regulating your company.
This information can help you avoid unnecessary mistakes and conflict with the government.
Likewise, it can help you avoid fines and ensure your employees get the earnings they deserve.
Thousands of contractors rely on our software for Certified Payroll Reporting. We are confident you'll like what you see when you check out our application. Contact us to get started!
