Scheduling a workforce can be a challenge for any manager. Scheduling construction crews can be even more problematic.
In addition to setting up and maintaining a certified payroll process, construction companies must pay their employees the appropriate local prevailing wage. This also means having a prevailing wage reporting process.
While there is no hard-and-fast rule defining what size an enterprise organization is, the research firm Gartner defines ‘midsize enterprises’ as “those organizations with 100 to 999 employees.” However, it’s safe to say that if you have over 100 or so employees you'll benefit from enterprise-level payroll solutions.
Accurate tracking is critical, however, as labor is also the single largest expense category for most businesses. While the relative cost can vary drastically depending on the business model, salaries or labor typically accounts for about 30 to 50 percent of the total cost of most business operations.
So, what is certified payroll? A brief explanation is found on the State of California Department of Industrial Relations (DIR) website:
"Contractors and subcontractors on most public works projects are required to submit certified payroll records (CPRs) to the Labor Commissioner using DIR's electronic certified payroll reporting system."
That's fine, but a bit brief and high-level, so let's take a deeper look at certified payroll.