Certified payroll software is a specific sub-category of payroll software dealing with government bid jobs. When working with a government contract, there are certain specifications and requirements that must be met that are slightly different than with other contracts. This is known as 'certified payroll'.
Under the Davis-Bacon Act, certified payrolls must be submitted from the beginning of the very first work week and for every week after until the contract or bid is satisfied. In the event that there are weeks where lulls in business or circumstantially work are not feasible, there still must be a certified payroll submitted in the form of a "no work performed" payroll.
There are two primary forms used in the area of certified payroll: WH-348 Statement of Compliance form and also the United States Department of Labor form WH-347 Payroll Certification. These are more or less industry standard forms that most states will adhere to. There are a few states, however, that do require specialized forms. These specialized forms are very similar to the forms previously mentioned but are slightly augmented for specific state regulations or requirements.
The certified payroll program will take the information submitted about a general payroll and create from that what is termed a Certified Payroll Register. The information that is taken into account is the following:
- Information of the project contractor and sub-contractor
- Information of the project itself with the address and other pertinent information
- Employee information with the name, the address, social security and any other pertinent information
- Any withholding exemptions
- Employee work classifications
- Hours worked by date
- Hours worked by each employee in total
- Rate of pay and any other incidentals or cash fringes
- Gross amount of pay earned on this job
- Gross amount of pay earned on all jobs
Any deductions and net wages paid for the week
Most certified payroll software programs are well adapted at integration. If you are running another payroll program or have some other means by which to keep track of your employee payroll, it would be beneficial to not have to re-enter all the information from one program into another. By automating this process you can save yourself time by preventing what is called double-entry of data. Ideally, the certified payroll software program you use will be able to directly take the information from your current program and fill in all the necessary fields for you. Different programs have different compatibilities. Some of the bigger brand names will most likely work with a wider variety of other programs. When purchasing a certified payroll software program it might be a good idea to check the compatibility to ensure that you will not run into a time consuming double entry scenario down the road.
Each and every contractor, and even subcontractor, is required legally to keep their own certified payroll information along with other information for a minimum of three years after the project has been entirely completed. This is important as well for consideration about integration. Regardless of whether or not your company has the budget to upgrade or change payroll programs every year, there is still the consideration of past records which must be kept. Integration of the payroll software is very important for saving time and extra work.
Certified payroll software can generally be gauged in price based on the nature of the industry in which it is used, or the type of job it is handling in addition to the quantity of employees it will be handling and the company which is providing it. Obviously the more complex the work and the larger number of employees, the more comprehensive the program must be which in turn will stimulate a higher price.
Utilizing certified payroll software will save time and valuable work hours. It will improve accuracy through organization of large quantities of information while making the sorting of that information as simple as possible. It also minimizes double entry of information and other potential input issues largely due to human related error. Most importantly it will put your company within the required guidelines for working on certain jobs and maintaining records for those jobs in accordance to your state's rules. (One of the most important things to look for in certified payroll software is that it will comply with any of the specific requirements or specifications that your state may have) Certified payroll is certainly a valuable investment if your company consistently works with jobs requiring certified payrolls.
Certified payroll software is specific payroll software that deals with government bid jobs and certain requirements and specifications that must be met.