Nancy Smyth
Top 10 Thursday features 10 of the most interesting articles that I found the previous week. There is so much news and information available on the web – it’s difficult to read everything and stay up to date. As I read articles on the web – I’ll share some that I feel are important.
General Business:
- Losing focus? 9 ways to concentrate at work
- Why to-do lists set you up for failure
- Have a pet? Perhaps they can help you out at work {sorry this is just a really cute YouTube video}
Bookkeeping, Accounting, Payroll & Taxes
Construction News
- Checking and Documenting Federal Debarment Status of Vendors
- Asphalt group questions life-cycle cost analysis procedures
- Check out the January issue of Construction Digital
Marketing & Social Media
- 8 Easy Ways to Boost Your Website on a Budget
- Easy Tips for Smart Social Media Strategy {YouTube video}
Well, there’s our Top 10 most interesting articles for last week – do you have some interesting news that you’d like to share?
Generating weekly certified payroll reports when you issue bi-weekly paychecks to your employees can be difficult unless your accounting software will accurately accrue the wages for each week – QuickBooks doesn’t have this ability and quite often this causes problems.
Payroll is one of the largest expenses that a company will have. Most companies, when they start up, will find out what the minimum requirements for paycheck frequencies are for the state that their business resides in – earlier this week we discussed paycheck/payroll frequencies by state – and they will follow those rules. This will work fine unless you are a contractor who makes the move to Public Works/Government Construction projects and become subject to prevailing wage laws. This is when problems can occur.
Under the Federal Davis-Bacon and related Acts; contractors and subcontractors performing work on Federal or Federally-aided construction-type contracts are required to submit weekly payrolls. The Copeland Act provides further/clearer requirements; indicating that contractors and subcontractors performing work on Federally financed or assisted construction contracts “furnish weekly a statement with respect to the wages paid to each employee during the preceding week”.
Obviously, contractors and subcontractors who issue their payroll on a weekly basis find the necessary information easier to obtain; therefore, making compliance of certified payroll reporting easier on the people who actually have to complete the reports.
What happens when your company is subject to the rules found in the Davis-Bacon and the Copeland Act and you issue your payroll on a bi-weekly basis?
I’m not here to tell you that you HAVE to start issuing your paychecks on a weekly basis – I’m only here to tell you what the requirements are and about what COULD happen – based on my experience; so that you can make an informed decision.
If you are lucky enough to have an accounting program that accurately accrues and distributes payroll taxes and wages based on when it is earned rather than when it is paid – you shouldn’t run into any issues when you create the certified payroll reports. BUT, if you use QuickBooks you need to be aware that it does not have this ability and your payroll is recognized only when you actually issue the paycheck and this is where the problem with your certified payroll reports COULD begin.
Each certified payroll report has a weekly calendar section {shown below} where by day and date you enter the number of hours that each employee worked on the prevailing wage job site and the total hours that he/she spend there during the entire week.
Right click on the image to enlarge it
When you issue payroll in QuickBooks on a bi-weekly basis – you will enter the time worked for each of the two separate workweeks in two individual timesheets, for example, let’s say that your pay period ends on a Saturday:
- Your first work week covers Sunday, December 21, 2003 through Saturday, December 27, 2003
- Your second work week covers Sunday December 28, 2003 through Saturday, January 3, 2004
- Your paychecks will be dated on January 7, 2004
Below are the two timesheet entries from QuickBooks:
- Workweek 1 has 24 hours on the Prevailing Wage Job and 16 hours on a non-prevailing wage job
Timesheet Work Week 1 - Right click to enlarge
- Workweek 2 has 24 hours on the Prevailing Wage Job and 16 hours on a non-prevailing wage job.
Timesheet Work Week 2 - Right click to enlarge
Next, we’ll look at the QuickBooks paycheck detail, you’ll see that the total number of hours are accurate for the full two weeks.
- A total of 48 hour at $28.50 per hour for $1,368.00 in wages for the prevailing wage job
- A total of 32 hours at $28.50 per hour for $916.00 in wages for the non-prevailing wage job
- Total gross for the 2 week period of $2,280.00
- Net wages for the week $1,528.33
Bi-weekly paycheck - right click to enlarge
When you create or run your certified payroll reports {whether is is with our Certified Payroll Solution software or using the built-in QuickBooks certified payroll report} you’ll need to generate two individual reports; one for each week. This is what the reports will look like:
- Week 1 – the hours are correct {24} and the rate of pay is correct {$28.50} BUT the gross amount earned This Job/All Jobs represents the FULL amounts from the bi-weekly paycheck {$1,368.00/$2,280.00} instead of $684.00 this job/ $1,140.00 All Jobs which was actually earned for this specific workweek.
Certified Payroll Report Week 1 - Right click to enlarge
- Week 2 – again, the hours are correct {24} and the rate of pay is correct {$28.50} BUT the gross amount earned This Job/All Jobs represents the FULL amounts from the bi-weekly paycheck {$1,368.00/$2,280.00} instead of $684.00 this job/ $1,140.00 All Jobs which was actually earned for this specific workweek.
Certified Payroll Report Week 2 - Right click to enlarge
Is this wrong? Well, sort of; the laws do indicate that payroll should be reported {therefore, issued} for the preceding week.
What can you do if you issue payroll on a bi-weekly basis?
Many of our own customers issue payroll on a bi-weekly basis, and on the Statement of Compliance {in the Remarks section} they add a note that indicates that they issue paychecks on a bi-weekly basis and while the certified payroll report accurately reflects the correct number of hours worked on the job for the specified week; gross amounts earned This Job/All Jobs, deductions {including taxes and other withholdings} and Net Pay reflect the full amounts from the single bi-weekly paycheck.
Will this statement keep you out of trouble?
Not necessarily, it all depends on the Contract Administrator and Awarding Agency.
The best thing to do, in my opinion, is to just bite the bullet and issue your payroll on a weekly basis; at least for the employees who work on the prevailing wage projects. This may mean some additional planing and scheduling on your part, but it’s easier than having your certified payroll reports rejected and having to manually calculate the gross, taxes, deductions and net pay and resubmit the reports!
Look for similar articles next week on how a semi-monthly or monthly payroll run will affect your certified payroll reports.
I hope that you’ve found this article to be informative and helpful in making informed decisions for your business; if so please take a moment to leave a comment or to share this with others on your favorite social networking platform using the buttons below.
QuickBooks, while a great software program, is a “generic” accounting program. Even though there is a “Contractor version”, it was designed to meet the needs of all types of contractors – from the home handyman to a general contractor. Only through the use of QuickBooks integrated add-ons will you find that it then becomes a viable substitute for the more costly construction specific accounting programs available.
Welcome to Tuesday Training!
Tuesday Training is a new feature here on the QuickBooks for Contractors blog. While everyday focuses on training of one sort or another, Tuesday’s are dedicated to more in-depth training.
We’ll teach you the things you need to know about using QuickBooks, that you won’t find in the QuickBooks Help file, in order to successfully run your construction business and obtain accurate job costing reports; from eBooks, live webinars, and recorded training sessions.
You’ll find high-quality (budget friendly) training without having to leave the comfort of your home or office.
Choosing QuickBooks and QuickBooks Add-Ons for Your Construction Business
Whether you currently use QuickBooks or are thinking of using QuickBooks for your construction accounting package you need to be aware that QuickBooks, while a great software program, is a “generic” accounting program and will not do everything that you may need it to for your business by itself, unlike more expensive construction specific software.
If you are like most contractors, you probably do not think of yourself as a “computer hardware/software expert’. In fact, when faced with the thought of purchasing new computers and/or software to automate critical, time consuming tasks within your business, you end up feeling overwhelmed. Many contractors end up turning the project over to someone else. This unfortunately, is one of the major reasons that this type of project fails.
Download the complete article to find how you can make your project succeed!
We hope that you’ve found today’s Tuesday Training article to be helpful to your business – if so please take a moment to leave a comment or share this with others on your favorite social media network using the buttons below.
Minimum payroll frequencies are determined by each state and can be quite confusing. I’m often asked “How often do I have to pay my employees” during a Certified Payroll Training Webinar. State minimum paycheck frequencies are shown below – this information comes directly from the U.S. Department of Labor’s website.
It’s difficult to thoroughly cover the requirements of all 50 states in a 2 hour webinar, but it has crossed my mind that a series of blog posts on the differences between what State Laws are for how often payroll must be generated and how that can effect the generation of a certified payroll report would be a good thing to do. While I could have simply started this series and talked about the complexities of generating certified payroll reports when issuing employee payroll on anything other than a weekly basis – I first wanted to display the requirements by state, rather than just put off a link to the U.S. Department of Labor website.
Under the Federal Davis-Bacon and related Acts; contractors and subcontractors performing work on Federal or Federally-aided construction-type contracts are required to submit weekly payrolls. The Copeland Act provides further/clearer requirements; indicating that contractors and subcontractors performing work on Federally financed or assisted construction contracts “furnish weekly a statement with respect to the wages paid to each employee during the preceding week”.
Obviously, contractors and subcontractors who issue their payroll on a weekly basis find the necessary information easier to obtain; therefore, making compliance simpler to obtain.
State |
Weekly |
Bi-Weekly |
Semi-Monthly |
Monthly |
| Alaska | X | X | ||
| Arizona | X 3 | |||
| Arkansas | X | |||
| California | X 9 | X 9 | X | |
| Colorado | X | |||
| Connecticut | X 4 | |||
| Delaware | X | |||
| District of Columbia | X | |||
| Georgia | X | |||
| Hawaii | X | X 5 | ||
| Idaho | X | |||
| Illinois | X | X 2 | ||
| Indiana | X | |||
| Iowa | X | X 6 | X | X |
| Kansas | X | |||
| Kentucky | X | |||
| Louisiana | X | X 7 | ||
| Maine | X 8 | |||
| Maryland | X | |||
| Massachusetts | X | X | ||
| Michigan 9 | X | X | X | |
| Minnesota | X 10 | |||
| Mississippi | X 11 | X 11 | ||
| Missouri | X | |||
| Montana 12 | ||||
| Nebraska 13 | ||||
| Nevada | X | X 2 | ||
| New Hampshire | X | |||
| New Jersey | X | |||
| New Mexico | X | X 2 | ||
| New York | X 14 | X 14 | ||
| North Carolina 15 | ||||
| North Dakota | X | |||
| Ohio | X | |||
| Oklahoma | X | |||
| Oregon | X | |||
| Pennsylvania 13 | ||||
| Rhode Island | X 16 | |||
| South Dakota | X | |||
| Tennessee | X | |||
| Texas | X | X 17 | ||
| Utah | X 18 | |||
| Vermont | X | X 19 | X 19 | |
| Virginia | X 20 | X 20 | X 2 | |
| Washington | X | |||
| West Virginia | X | |||
| Wisconsin | X | |||
| Wyoming | X |
- Alabama and South Carolina – No regulations or not specified.
- Illinois, Nevada, New Mexico and Virginia – Monthly payday requirements for Executive, Administrative, and Professional personnel.
- Arizona – Payday two or more days in a month, not more than 16 days apart.
- Connecticut – Longer interval (up to monthly) permitted if approved by Labor Commissioner.
- Hawaii – Employees may choose to be paid on a monthly basis under special election procedure. Director of Labor and Industrial Relations also may grant exceptions to the general semi-monthly payday requirement. Payday requirement applies only to private sector employment.
- Iowa – Any predictable and reliable pay schedule is permitted as long as employees get paid at least monthly and no later than 12 days {excluding Sundays and legal holidays} from the end of the period when the wages were earned. This can be waived by written agreement; employees on commission have different requirements.
- Louisiana – Applicable to entities engaged in manufacturing, mining, or boring for oil, employing 10 or more employees, and to every public service corporation. Payment is required once every two weeks or twice during each calendar month.
- Maine – Payment due at regular intervals not to exceed 16 days.
- California and Michigan – Frequency of payday depends on the occupation.
- Minnesota – Employees engaged in transitory employment, i.e. migrant workers, which require and employee to change the employee’s pace of abode, because the employment is terminated wither by the completion of the work or by the discharge or quitting of the employee must be paid within 24 hours.
- Mississippi – Applicable to every entity engaged in manufacturing of any kind in the State, employing 50 or more employees and employing public labor, and to every public service corporation doing business in the State. Payment is required once every two weeks or twice during each calendar month.
- Montana – Wages must be paid within 10 business days after the wages are due and payable.
- Nebraska and Pennsylvania – Payday designated by employer.
- New York – Weekly payday for manual workers. Semi-monthly payday upon approval for manual workers and for clerical and other workers.
- North Carolina – None specified, pay periods may be daily, weekly, bi-weekly, semi-monthly or monthly.
- Rhode Island – Childcare providers shall have the option to be paid every two weeks.
- Texas – Monthly payday for employees exempt from overtime provisions of the Fair Labor Standards Act.
- Utah – Payments are to be paid at regular intervals but in periods no longer than semi-monthly.
- Vermont – Employers may implement bi-weekly and semi-monthly payday with written notice
- Virginia – Employees whose weekly wages total more than 150% of the average weekly wage of the Commonwealth may be paid monthly, upon agreement of each affected employee.
NOTE: South Carolina – Employers with 5 or more employees are required to give written notice at the time of hiring to all employees advising them of their wages agreed upon, and the time and place of payment along with their expected hours of work. The employer must pay on the normal time and at the place of payment established by the employer.
Stay tuned over the next week to find out some of the problems that can occur when a company follows various state payroll requirements {bi-weekly, semi-monthly, and monthly paychecks} and how the pay frequencies affect the submission of their certified payroll reports.
Inbound marketing – the difference between potential customers finding your company vs. you looking for potential customers. Maybe that is a bit to simplistic. According to Wikipedia – Inbound marketing is a marketing strategy that focuses on getting found by customers by publishing helpful information on a blog, etc. {earning their way in} in contrast to outbound marketing via paid advertisements {buy, beg, or beg their way in}.
If your company is making the switch from outbound marketing and paid advertisements {which I’ve never found have worked well for our company} to inbound marketing; one of the things that you need to do is track how successful you are at publishing content on the web that is getting you found and analyzing if you are being found by the right people – you know – the ones that actually end up purchasing the goods or services that you offer.
I admit, I still struggle with this. Like many business owners I only have so many hours in my day and I don’t have the luxury of hiring someone just to market our business or monitor the various social media platforms we are on. Our marketing department consists of “me, myself, and I” and I can tell you that “I’m” very busy!
I know that analyzing and tracking information such as this is important:
- how many hits or page views that our website and blog receive
- are people sharing the information they find on social media networks
- are people printing out the information they fin
- are they purchasing the higher end QuickBooks training that is offered here
- what are the most popular pages on our blog or or website
- how many people actually request trials of our software
- how they found us/where these visitors are coming from
- how many people actually buy our software {or hiring me to do some QuickBooks consulting} after visiting our sites
I do have some things in place – I have a Google Analytics account for both our website and our blog and some other tracking plug-ins on both our main website and here on our blog. And I do look at them occasionally – probably not often enough though; and I have to admit I’m often overwhelmed by the amount of data that I see. With that, onto today’s eBook from Hubspot!
Free eBook: An Introduction to Inbound Marketing Analytics
Analytics programs can give marketers amazing insight into their marketing campaigns, but this wealth of data comes with a cost. There’s just so much information – and so many possible combinations of metrics and reports to track – that many marketers get overwhelmed trying to make sense of it all.
But don’t let data overload stop you from using analytics to improve your marketing effectiveness.
Hubspot’s free ebook highlights the essential inbound marketing metrics for data-driven decision making, along with advice for how to use that data to improve and optimize your marketing efforts.
This 85-page guide from HubSpot will teach you how to effectively analyze the following marketing channels:
- Your Website & Landing Pages
- Search Engine Optimization
- Paid Search
- Business Blogging
- Social Media
- Email Marketing
- Lead Nurturing & Marketing Automation
Start analyzing and improving your marketing today by clicking this link and completing a short request form.
I will be honest – I have downloaded the eBook, but haven’t read the entire thing yet – but it looks pretty interesting and I’m hoping that it will help me to get on track to develop some sort of tracking system or at least to better understand the data from my Google Analytics account!
Have a great Friday everyone!
