Federal funded construction projects have more advantages, including inclusive of all project cost, supports concept development, and proposal design.
Despite these benefits, it comes with certain restrictions like strict regulations and reporting requirements that are painstaking.
As a result, it directly influences payroll, which went wrong, costs you penalties, legal issues, and in worst cases, debates from government projects.
To shut down all these, you need to use certified payroll reporting software. However, the problem doesn’t stop by purchasing payroll software. It would help if you eliminated the risk with its practical usage.
We underline the common mistakes that tend to occur in certified payroll reporting software and the ways to avoid them.
Falsework allocation & calculation
While paying the wages to the workers, challenges occur. Briefly, when a worker does a regular cleanup, the wage calculation is different from that of laying bricks.
Substantially, it signifies the worker might have different tasks on the same day, which comes under additional work classification.
It is easy to calculate for a single worker, but remember, for thousands of construction workers every day; an error occurs just like that.
So, using certified payroll reporting software helps you maintain a system that records all the respective work allocation, the daily wage, and the number of working hours.
This way, you can eliminate the errors at the early stages.
Error in determining the wages
Now, if an error occurs even when determining the wages, what to do? Usually, wages are selected based on hours, inclusive of benefits.
These rates are fixed by both the Design Basis Accident (DBA) and the Service Contract Act (SCA).
In addition to that, the state and municipality also have wage determination. These wages changes from time to time.
So, it is wise to check the latest published rates before determining the wages for the workers. Respective Governments update the rates on their official page regularly, which you can use to compare the payroll.
Even though you use certified payroll reporting software to calculate and determine the rates, you need to keep an eye on it. If an error occurs, make wage restitution immediately.
Time tracking misconceptions
As you already know by now, time tracking plays a crucial role in certified payroll determination.
Frequently manual time tracking is prone to errors; considering an automated time tracker system within a certified payroll reporting software is a wise choice.
Significantly, OnPay has this feature to overcome the misconceived time tracking mistakes seamlessly. It thoroughly monitors the time spent by each worker and send daily and weekly reports.
Also, it requires similar efforts from the workers’ side. They need to be educated on how to change the workers’ classification based on their allocated tasks.
For this, you should implement an easy to use certified payroll reporting software.
Mistakes in administrative tasks
Construction companies that took up the government-funded project have one more responsibility as well.
You need to maintain a strict record with each worker’s extensive details (name, address, social security number), hourly rates plus benefits, work classification, the number of hours worked, deductions, wages paid, and apprenticeship, if any.
You can safeguard all these data in a certified payroll reporting software that prevents third-party breaching.
Besides, you need to have a physical copy for at least three years from the date of project completion in your main office.
Adopting an organized system like a certified payroll reporting software will save you from any of these mistakes. Unfortunately, you can’t afford to make a mistake as it may cost you devastating effects on your business growth.
Although maintaining a payroll report might feel like a burden, it will protect you from severe damages.