Contracting with the government can be a bittersweet experience. You get a stable job that pays well, but there’s a cost.
Contractors with government-funded projects are required by law to submit certified payroll reports. Born out of the Davis-Bacon Act, any company that performs projects on public works or buildings with a contract value over $2000 must submit certified payroll reports to the funding agency. The reports are designed to ensure that you paid your employees the appropriate prevailing wage and fringe rates for their specific job.
In the reports, you need to provide a daily breakdown of how many hours each person worked each day on the project. If you’ve had to submit one of these reports to Federal, State or Local agencies, you know how painfully detailed and accurate the reports need to be.
Sentenced to Manual Labor Reports
Many companies manually complete the 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 must take it on faith that the information they received from the job site is accurate and that they correctly calculated and recorded the information. If not, they could face significant fines.
This is a process that can take several hours each week—IF the information is accurate. But if an employee forgets to submit time or it’s improperly assigned to a different project, the employer has to recreate and resubmit the reports.
This manually-intensive process of certified payroll reporting takes time away from core tasks and it spikes the odds of being audited.
But there is a better way.
How to Escape Manual Reporting
Companies that are using 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 3-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.
- Read our blog post on designing a more efficient payroll process for contractors.
- Learn more about Time Bank.
- Thinking about partnering with IDI? Contact us!