Unraveling Certified Payroll Requirements On Federal Construction Projects webinar presented for L2 Federal Resources, LLC
Wednesday, May 18, 2011 • 1:00 – 2:30 PM EDT
Presented by: Nancy Smyth, Sunburst Software Solutions, Inc.
_____________________
Making the move from residential/commercial construction projects to government-funded construction projects, which have certified payroll reporting requirements, can be overwhelming for most contractors, their office staff, and the accounting professionals who support them. This often misunderstood requirement can lead to major problems, including non-approval of payment requisitions, denial of payment for change orders and claims, and contract termination. Don’t get caught in a payroll certification trap; learn the ins and outs of federal certification payroll requirements and get all your questions answered.
Our live, instructor-led, on-line training class focuses on the following:
- What government agencies make the laws behind certified payroll reporting requirements?
- How to comply with Labor Standards & Payroll Reporting requirements
- How to complete a Certified Payroll Report & Statement of Compliance
- Common methods for creating Certified Payroll Reports, Statements of Compliance, EEOC, ARRA and Fringe Benefit Reports
- State prevailing wage vs. Davis-Bacon forms and which form applies
- Electronic certified payroll filing requirements
- Ways contractors pay fringe benefits and how to report them
- Tracking employee time and work classifications
- Requesting additional “trade/work classifications” and wage rates
- Typical errors that require correction
- Don’t forget to include your subcontractors
- What happens when things go wrong
- Automating these time-consuming, error-prone tasks
- And much, much more!
In addition, a 10-to-15 minute period has been reserved at the end of the speaker’s presentation for an interactive question-and-answer session so you can discuss specific issues or gain additional knowledge about topics discussed.
Who Will Benefit?
Contractors who are currently (or are interested in) contracting with the federal government, and who want to better understand and improve their certified payroll processes. Certified payroll is everyone’s business; gather your whole team, including:
- Owners
- Estimators
- Controllers
- CFO’s
- Payroll processors
- Office managers
- Business development experts
- Accounting & Consulting professionals
- Union and non-Union Contractors
Register ONLINE, at the L2 Federal Resources, LLC registration page.
$3.5 billion mixed-use development rises along harbor in Connecticut.
The $3.5 billion Harbor Point development in Stamford, Conn., has started to take shape as towers rise near the water. One of the largest mixed-use projects in the country, Harbor Point sits on 80 acres and will include 4,000 residential units, a marina, a school and some 2 million square feet of office and retail space. The New York Times (free registration) (12/7)
New York Department of Transportation plan major bridges makeover
More than 17,000 bridges in New York are fast approaching middle age, and the state’s transportation agency plans to focus on the makeover of some of them. The state has earmarked about half of the $7 billion in its two-year capital spending plan to rehabilitate about 385 state and local bridges. The Wall Street Journal/The Associated Press (12/7)
Connecticut brownfield site could become a $750 Million mixed-use development
A 600-acre industrial brownfield site in Windsor, Conn., could become a $750 million master-planned residential and light commercial development. Named Great Pond Village, the site plan includes 3,500 single and multifamily residences, 85,000 square feet of retail and 250,000 square feet of office, research and development space. The planned development will use eco-friendly designs and technologies and provide space for walkers, cyclists and public transportation. Hartford Business Journal (Conn.) (12/7) , The Hartford Courant (Conn.) (12/7)
San Diego considers $230 million waterfront redevelopment
San Diego officials are close to approving the first stage of a $230 million redevelopment project on the north end of the Embarcadero. “It’s going to be a grand project with hotels and retail space that will attract visitors to San Diego,” said a Port District spokesman. “These are significant improvements with landscaping, wide walkways, running paths and areas for the public to gather.” SanDiegoNewsRoom.com (12/7)
An infusion of federal infrastructure funding through the American Recovery and Reinvestment Act (ARRA) have had and will continue to put more contractors and their employees back to work. Federal investment in Public Works projects will create jobs throughout the country and not just construction jobs.
While additional public infrastructure projects will allow the construction industry to maintain their current workforce and will even necessitate hiring more workers. You will also see contractors who have previously worked on other types of construction projects (residential and/or commercial) begin bidding on newly created Public Works projects.
This will also encourage contractors to purchase equipment, thus preserving and creating manufacturing jobs.
As a Certified QuickBooks ProAdvisor or Accounting Professional who is working with construction clients – you are entering into a very challenging experience!
More demand for construction savvy accounting professionals.
Contractors who will perform work on these government funded public works construction projects will face new bookkeeping, accounting, and compliance issues that they may not have faced before, therefore, they will be seeking help and advice (aka consulting time) from construction savvy accounting professionals who support QuickBooks – specificically in the areas of improved job costing and the preparation and submission of certified payroll reports; which are required on government funded construction projects valued over $2,000.00.
The terms “construction and contractors” are vague and widely misused terms which cover everyone from the local handyman who makes repairs/improvements on your house to the contractor who is building or repairing a bridge on your local highway.
Let’s talk about construction projects
In general, there are three types of construction projects that contractors can be involved in, each having their own unique accounting and compliance issues:
- Non-Residential Building which includes the actual process of building, creating, or repairing commercial, manufacturing, educational, religious, administrative, recreational, hotel, dormitory, and other actual buildings. These types of project may require the submission of AIA format billings and/or certfied payroll reports – in order for the contractor to be paid.
- Residential Building which includes the actual process of building, creating, or repairing single family homes, multi-family homes, and apartments and other buildings of this nature. These types of projects may require the submission of AIA format billings – in order for the contractor to be paid.
- Heavy/Highway, Industrial, or Non Building construction which includes the building or repair of streets, highways, bridges, dams, reservoirs, river and harbor developments, sewage and water supply systems, missile and space facilities, airports, utilities, public works projects, and communication systems; just to name a few. These types of projects may require the submission of AIA format billings and/or certified payroll reports – in order for the contractor to be paid.
AIA format billing is a “standardized” method of billing developed by the American Institute of Architects.
Many contractors across the United States are subject to the Davis-Bacon Act – including a growing number of small, medium, and large construction firms as a result of the American Recovery and Reinvestment Act of 2009 (ARRA).
ARRA provides billions of dollars in funding for the improvement of the nations’ infrastructure that in turn created a slew of new government-funded construction projects requiring certified payroll reporting.
According to USASpending.gov, as of November 23, 2009, there was $43.9 billion in spending targeted for the “construction of structures and facilities.”
A U.S. Federal Law, the Davis-Bacon Act of 1931, set “prevailing wage” rate requirements on public works projects. All contractors and subcontractors who engage in government construction contracts and federally assisted construction projects over $2,000.00 are required to submit weekly – certified payroll reports to ensure government compliance.
What is a “prevailing wage”?
- Determined by the U.S. Department of Labor
- Based on wages for the area (including Union wages) in which the project will occur and the type of construction
- Prevailing wage rates differ based on the type of work the employee performs and their level of skill
- Can change by city, county, or job
- Prevailing wage rates include BOTH an hourly wage rate PLUS an hourly fringe benefit amount
- Can be more than what you currently pay your employees
What is the “hourly fringe benefit amount” and HOW is it paid?
- Specified dollar amount in ADDITION to a base hourly rate of pay
- Can be paid:
- To the Union on behalf of the employee
- To a “bona-fide” fringe benefit plan
- In cash to the employee as part of his/her gross hourly rate of pay
- The total hourly fringe benefit amount can be “split” between a bona-fide plan(s) with the balance paid in cash to the employee
What is a certified payroll report and what makes it “certified”?
- Specially formatted payroll report consisting of the actual payroll report and a certification page
- Must be submitted on a weekly basis
- “Certification” is obtained via an ORIGINAL SIGNATURE of a company official
Is there a single, standard certified payroll-reporting format or form?
Not really – it will depend upon the state in which the construction project exists and if the project is funded with Federal or State money.
- 24 states follow the reporting rules of the U.S. Department of Labor – Wage and Hour Division and require the filing of the Federal (USDOL) Form WH-347.
- 13 States have their own State Prevailing Wage Laws and forms OR can require the WH-347 form when a job is funded fully by federal dollars.
- 13 states have multiple State Agencies issuing Prevailing Wage Laws and forms, multiple compliance companies, electronic certified payroll reporting requirements OR can require the WH-347 form when a job is funded fully by federal dollars.
In addition to a weekly-certified payroll report, are their other reports that are required?
Absolutely! It is a common misconception that all you have to do is submit a certified payroll report for each week that you work. Additional reports include:
- “No Work” Performed Report for weeks in which you have no employees on the job site.
- Union/Bona-fide Plan Fringe Benefit Reports – on a monthly basis.
- Union Dues Reports – on a monthly basis.
- Federal, State, or Local EEOC/Workforce/Manning Reports – on a weekly, monthly, or annual basis (depending upon the State that the project resides in).
- American Recovery & Reinvestment Act (ARRA) Reports – on a monthly basis.
How are contractors who use QuickBooks complying with prevailing wage reporting requirements?
- Complex Excel spreadsheets which are manually updated each week
- Use of the “alternate, substitute” certified payroll report (found in QuickBooks Enhanced Payroll and used with Premier or Enterprise Editions)
- Stand-alone software programs which have no QuickBooks interface and require double-data entry each week
- Through the use of QuickBooks integrated applications, specifically designed for compliance with prevailing wage requirements.
