If you’re a contractor and you’ve begun bidding on government projects, you may be wondering how to set up a certified payroll process. Due to the Davis-Bacon Act and other state requirements, contractors are required to submit a payment report weekly using Form WH-347 or state required form—and that’s only the start of your duties. Contractors and subcontractors often find the payroll forms, reports, and filing procedures consume many hours they need to spend on other facets of the business.
Hiring a certified payroll consulting firm to handle these requirements is a good solution for many businesses, and some contractors simply don’t have room in the budget to add another full-time administrative employee. In this situation, a labor compliance company like Public Works Consultant can provide external support to ensure compliance with federal and state requirements while not breaking the bank.
What Are the Most Common Methods of Setting Up a Certified Payroll Process?
There are two main methods of setting up your certified payroll system:
A Digital Setup
This is the preferred method for most contractors. If you want to use a digital approach, you’ll need to invest in the appropriate software. Options include:
- Quickbooks
- Foundation
- Procore
Any of these systems will automate many of the processes involved in certified payroll. However, you might have concerns about relying entirely on a software program to handle payroll compliance. If a number is entered incorrectly, or a defect in the software programming causes an error, you could quickly find yourself out of compliance—and in trouble with the government. They also do not address any of the multitude of labor compliance requirements associated with government contracts.
For this reason, digital setups should be paired with a public works compliance advisor who can review the forms and make sure everything is in order on a regular basis.
A Manual Setup
Some business owners or managers prefer a pen-and-paper method of employment labor compliance, which can be done with detailed spreadsheets and hard copies of all necessary forms. However, this method also carries a high possibility of errors. Some people find that paper forms are more challenging to keep track of or easier to misplace. Others trust a software program’s calculations more than their own math. Again, a payroll certification expert can help keep you on track if you choose a manual setup.
What Are Some Other Possible Pitfalls of a Certified Payroll Process?
It’s essential to ensure you’re compliant with both federal and state regulations. If your business performs work in more than one state, the process could become even more complicated. Even your business software may not be able to handle all forms correctly if you have different needs in different states.
The process itself is also highly time-consuming, and many business owners can’t give payroll certification the attention it deserves. Additionally, when they do focus on payroll, they may find the complicated maze of forms or requirements confusing.
How Can A Certified Labor Compliance Company Help With Setting Up a Certified Payroll Process?
A certified labor compliance company like Public Works Consultant is staffed by experts whose only job is to help clients with labor compliance. We don’t have to worry about the other everyday tasks of running your business—you can concentrate on those items while we ensure you’re compliant with federal and state regulations.
Our associates can work with your existing payroll process or recommend a stronger solution if necessary. We know which forms need to be filed to meet state and local requirements in addition to federal ones. You’ll never have to worry about forgetting to file this week’s report or wonder if you filled out a form correctly because we’ll take care of those concerns for you.
If you’d like to learn more about payroll certification or how we can help your business meet its requirements, please contact Public Works Consultant for a free consultation.
