Accuchex Blog

Understanding Certified Payroll Services for Construction Companies

Posted by Leslie Ruhland on Aug 1, 2016 6:00:00 AM
Accuchex Payroll Solutions
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New contractors frequently want to know “What is a certified payroll / certified payrolls, certified payroll services, and certified payroll software?”   


The successful operation of a construction firm requires the careful coordination of many efforts. Putting up a new building is only part of the process; materials acquisition, building code compliance, and regulatory compliance are all important, too. Meeting deadlines while satisfying regulations requires constant vigilance and an effort to observe best practices. When taking on government building contracts, your firm's success on the job depends on complying with federal law. Perhaps one of the biggest areas of compliance concern is the "certified payroll" all government contractors must submit for each job.

Larger projects can cause a lot of complexity entering into the equation when preparing your certified payroll. Before tackling why careful preparation is essential and the advantage of certified payroll services like those Accuchex offers through Time2Pay, it is primarily prudent to have all the facts. With its roots in federal labor legislation, what exactly is certified payroll and why is it required for your construction firm to submit one weekly?

The facts about certified payroll

  1. At its most basic level, a certified payroll is a company's accounting of everything paid out on a contract performed for a government client.
  2. It is a detailed record that records hours worked, the wages paid to each employee, and the jobs those employees performed.
  3. Its primary purpose is to provide the government with a method of oversight to guarantee that its contractors compensate employees in accordance with requirements concerning "prevailing wages."
  4. This wage is the average wage paid for a given job in a particular local area such as a county.

The piece of law forming the legal basis for this is known as the Davis-Bacon Act and Related Acts. This bill passed into law in 1931, when the labor fairness legislation created the prevailing wage system as well as the certified payroll framework. Since then, many states have adopted similar legislation. Therefore, construction companies looking to perform government work should prepare for navigating the intricacies of this process.

Have additional questions about certified payroll? Download our free  construction payroll guide.

The crucial importance of accurate certified payroll reporting

With so much jargon like "prevailing wages" flying around, grasping all the details isn't always easy. Especially if you are new to government construction contracts, the number of requirements to meet can be a little overwhelming. With the addition of the "Little Davis-Bacon" laws in over half the states, there are often several layers of responsibility concerning who expects a certified payroll report and statement of compliance. Why is it all so important, though?

Foremost is the fact that it is a matter of guaranteeing fair labor practices across the country. Beyond the core purpose, though, is the major reason compliance is important: without it, your firm will not receive any additional government work. There are also penalties for failing to submit weekly certified payrolls that could negatively impact your business. Easy to use and highly accurate reporting tools are therefore an invaluable asset.

7 points to consider about payroll in the construction industry

Why let a third party assist in preparing your certified payroll?

The complex nature of preparing certified payrolls demand a robust solution that can cut down on human error. Because certified payrolls requires careful tracking of which employees worked which jobs and for how long, doing it without any help can be tough. When there are many groups of employees working on different projects, it's best to centralize the process. Time2Pay, certified payroll software, allows for the input of daily work information across the many projects your construction company handles.

Accuchex's Time2Pay provides construction employers with a clean and user-friendly interface for tracking all the information required on certified payrolls, including dates worked, hours worked, job codes, pay codes, and more. Time2Pay also offers you the ability to allocate workers to specific construction projects and tracking their hours worked on each project. Keeping a close eye on this information is essential for accurate completion of each week's certified payroll.

Compiling payroll is less complex when you can easily see where a crew worked that week. Additionally, with an interface accessible entirely via the Internet — no additional software required — administration and management of payroll only requires access to a computer. This convenience allows your business to continue operating with minimal disruption.

Accuchex provides accountability for your firm as well. Detailed report generation based on all information collected provides protection against audits. After submission of payroll, dozens of reports are available directly through Time2Pay for your records. The creation of a verifiable trail of evidence that your firm took every step legally required for compliance can make audits much simpler. In conjunction with experienced certified payroll processing services, Accuchex provides construction companies with access to every tool necessary for staying on top of their legal requirements.

With the revenue and reputation that come with winning government contracts, compliance with the demands placed on your construction firm is of clear importance. Track the data necessary for preparing certified payroll with Time2Pay. Trust in the experience and accuracy of Accuchex's certified payroll services. With the confidence that affords, you can sign your Statement of Compliance, which certifies the accuracy of the payroll, without hesitation.

Do you have any questions related to certified payroll or outsourced certified payroll services. Please connect with us online for a complimentary certified payroll demonstration or contact us at (415) 883-7733.

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Topics: Certifoed Payroll Services, Certified payroll, Certified Payroll Software

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