Well it’s Freebie Friday again here on the QuickBooks for Contractors blog. With the new year, we have a whole bunch of NEW ebook lined up to offer you. We hope you enjoy them and that you’ll take the time to leave us a brief comment as to what you think about them.
And now, with no further delay………….this week’s ebook is………..
Lesson 1 – Getting Started; Introducing QuickBooks Premier Contractor Edition.
Lesson 1 – Getting Started is intended for new QuickBooks users or users who feel that they would like a “refresher” course and will:
- Discuss why you need to keep books for your business.
- Discuss why you need to keep books from the IRS’s point of view.
- Using Forms and Registers to record transactions.
- Teach you how to navigate the program.
- Introduce and discuss the various “Lists” that QuickBooks has available and what their purpose is.
- Discuss how much “bookkeeping and accounting” knowledge you must have.
- Moving between QuickBooks Company data files.
- Exiting the program and backing up your data.
This eBook is an introduction on how to use QuickBooks in the commercial/government construction industry. Its main objective is to introduce you to the basic features in QuickBooks. You’ll learn about the types of information you need to track in your business, and you’ll see how to enter that information and track it in QuickBooks. By the time you complete the eBook, you’ll have a good idea of all that QuickBooks offers, you’ll be familiar with the most common tasks, and you’ll know where to find information about more advanced features.
Sound interesting? If so, request your own copy by clicking here.
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.
