For construction companies, contracting on government projects provides a stable job with guaranteed money. But there’s a cost, too.
Government-funded projects with a contract value over $2000 require contractors to submit certified payroll reports. These reports are designed to show that you’re paying your employees the appropriate prevailing wage and fringe rates for their specific job. It’s a well-intentioned measure that’s designed to protect you and your employees, but the level of detail must be excruciatingly accurate. If you’ve had to submit one of these reports, you know how painfully detailed and accurate they need to be.
Certified payroll reports need to provide a daily breakdown of how many hours each person worked each day on the project. On top of that, many states have their own state-specific reporting requirements, some have adopted electronic filing requirements, and 24 states have multiple reporting requirements based on the work performed (e.g. Department of Transportation). With all of these project specific requirements, you’ve got a hefty job to do.
Certified Payroll Reporting Needs a Fix
For many construction companies, certified payroll reporting needs to get fixed. These companies manually complete certified payroll reports each week. They download the report template from the Department of Labor website and fill out the reports by hand. As they complete the report, they have to take it on faith that the time-and-attendance information they received from the job site is accurate, and that they correctly calculated and recorded the data. If not, these contractors could face significant fines.
Payroll staff need to dedicate several hours of their week to manual reporting—and if any information is inaccurate, the reporting prep time is multiplied. If an employee forgets to submit time or it gets assigned to the wrong project, the company has to recreate and resubmit each report.
This manually-intensive process takes time away from your core tasks, and it spikes the odds of being audited.
But there’s a way to eliminate the time and risk of certified payroll reporting.
A Better Option for Payroll Reporting
Companies that use ADP’s Workforce Now® payroll solution can avoid the manual and risky reporting by automating the process. ADP clients can implement the Certified Payroll Reporting solution powered by Time Bank™ to quickly, accurately, and reliably generate these reports.
The automated solution is a simple three-step process that you run at the end of each pay cycle. It takes just minutes to do and it is intuitive to use.
Check out this quick video to see how companies can save time and stay in compliance with Federal, State and Local reporting requirements.
This automated solution is sold, serviced, and supported by ADP.