Many accountants or controllers new to payroll for construction may find themselves being asked to fill out certified payroll reports frequently when they’ve never done it before. These reports are unique to the construction industry and can be very time-consuming to produce accurately. So what is certified payroll? And why is it so important?
Certified payroll reports are required on most federal, state, and county-funded construction projects. They are used to monitor prevailing wages and ensure proper wages and benefits are paid to each employee based on their labor classification or trade. These government organizations dictate minimum wage and benefits packages by labor classification. Certified payroll reports are usually filled out weekly and each project may have different reporting requirements. Things included in the report are:
- Payroll amounts including Gross to Net Pay amounts, deductions, and fringe benefits
- Hours worked each day of the week (including regular and overtime hours)
- Check numbers and dates
- Total gross pay for all projects as well as gross pay on the specific project included in the report
These reports are cumbersome to fill out manually. They can be filled out online using the U.S. Department of Labor’s website. However, according to the U.S. Department of Labor, 1 hour is generally needed to create a payroll report of 8 employees per week. It’s easy to see how this process can suck time away throughout the week when done manually.
With ConstructionPayroll.com, these reports can automatically be available with the touch of a button after you run your payroll. When we run your payroll, we collect the data for all your certified payroll reports so that you don’t have to. Run certified payroll reports on demand with ConstructionPayroll.com!
Get a free quote today and let us give you your time back.