Complying With Davis- Bacon/Prevailing Wage Laws, AIA . PDF Free Download

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Complying with DavisBacon/Prevailing WageLaws, AIA BillingRequirements andOvertime Laws(Jumping through hoops to payand be paid)Nancy SmythSunburst Software Solutions, Inc.Copyright 2000 – 2010 All Rights com

Background Used and supported Intuit products since 1986 Specialized in working with commercial/governmentconstruction contractors Manually created certified payroll reports, EEOC Reports,Fringe Benefit and Union Dues reports from QuickBooksdata for 4 years Certified QuickBooks ProAdvisor since 2000 3rd party developer of QuickBooks Add-ons since 2000 Intuit Premier Level Developer since 2001 Intuit Gold Developer since 2006 Member American Institute of Professional Bookkeeperssince 1996Sunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Government Funded Construction ProjectsCertified PayrollPrevailing Wage LawsAnd Davis-Bacon Act ComplianceSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is a Government FundedConstruction Contract? Construction project funded with Federal or Statedollars Value of 2,000.00 or moreSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Who is involved in makingPrevailing Wage Laws? Davis-Bacon ActContract Work Hours and Safety Standards Act (CWHSSA)Copeland Act (Anti-Kickback Act)Fair Labor Standards Act (FLSA)Equal Employment Opportunity CommissionUnions U.S. Department of LaborState Department of LaborState Department of TransportationSome Cities and CountiesSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is a “prevailing wage” Determined by the U. S. Department of Labor Based on wages for the area in which the project willoccur and on the type of construction (including Unionwages) Prevailing wage rates will differ based on the type ofwork the employee performs and their level of skill– Can change by city, county, and job Prevailing Wage Rates include BOTH an hourly wagerate PLUS an hourly fringe benefit amount– Usually more than what you currently pay youremployeesSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is the “fringe benefitamount” and how is it paid? Specified dollar amount in addition to a base hourlyrate of pay Can be paid––––To the Union on behalf of the employeeTo a “bona-fide” planIn cash to the employee as part of gross wagesThe total hourly fringe benefit amount can be “split”between a bona-fide plan(s) with the balance paid in cashto the employeeSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is considered to be a “bonafide” plan? *Contributions made by the employer to employeeHealth, Dental, Vision, Life, or Accident Insurance 401k employer contributions Pension contributions made by employers **Vacation and/or Holiday Pay ***Supplemental UnemploymentContact your State Department of Labor – Prevailing Wage Divisionto find out what is considered to be a “bona-fide” plan.*Not all states will allow contractors to take a “credit” toward the total hourly fringe benefit rate for these items.**Even fewer states allow contractors to take a “credit” toward the total hourly fringe benefit rate for these items.***Prevailing Wage Contractors Association – http://www.pwca.netSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Specifics Union– Straight time 11.00– Overtime 11.00 ( 11.00 divided by 2) 5.50 16.50 Bona-fide Plan– Straight time 11.00– Overtime 11.00 ( 11.00 divided by 2) 5.50 16.50 Cash to the employee– Straight time 11.00 3.79 14.79– Overtime 11.00 ( 11.00 divided by 2) 5.50 3.79 20.29 Bona-fide Plan & Cash to the employee ( 1.00 credit)– Straight time 11.00 3.79 - 1.00 13.79– Overtime 11.00 ( 11.00 divided by 2) 5.50 3.79 - 1.00 19.29Sunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

How does this affect my labor costsand bidding? 3.79 paid to Union Hall or bona-fide plan treated as companycontributions, usually not subject to payroll taxes, workers comp and*general liability insurance 3.79 paid to employee as part of gross wages – subject to payroll taxes,workers comp and *general liability insurance 2.79/ 1.00 split – the 2.79 paid to the employee as part of gross wagesis subject to payroll taxes, workers comp and *general liability insuranceBUT the 1.00 is treated as a company contribution and is NOT subject tothe additional labor burden Should always be job costed Should always be included in labor burden calculations when bidding* subject to General Liability Insurance ONLY if it is calculated on gross payroll and not gross sales.Sunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Tracking employee time, pay rates& work classifications Trade or work classification MUST be selected foreach employee based on the type of work they areactually performing Employees who work “split classifications” (laborerin the morning – equipment operator in theafternoon); required to track hours accurately orpay highest rateSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is a Certified Payroll Report &what makes it “certified”? Specially formatted payroll report Must be submitted on a weekly basis Signed with an original signature of a companyofficialSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What information has to be reportedon the Certified Payroll Report? Who is working on the project What type of work each employee did Where your employees worked and how many hours theyworked What you paid them on an hourly basis How much the employee earned on this job and on all jobs What was withheld from their pay How much money they took homeSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is AIA Billing? Standardized method of percentage of completioncontract billing (progress invoicing) Developed by the American Institute of Architects(AIA) in 1992 Contractor “applies” for payment due Architect “certifies” that payment is due Must be signed by the contractor & notarized Can expedite paymentSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What information is requiredon an AIA bill? Original Contract AmountNet Changes by Change OrdersContract Sum to DateTotal Work Completed & Stored to DateRetainage WithheldTotal Earned LESS RetainageTotal of previous billingsCurrent billingBalance to finish INCLUDING RetainageSummary of Current & Previous Change OrdersSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

What is Retainage? “Retainage” is a percentage of the total job bid that is“held back” Considered insurance or a “good faith” tool Supposed to be held in escrow and paid back whenthe contractor has fulfilled his obligationsSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

How is Retainage Held? Fixed Rate Variable Rate– Changes over the life of the contract– Different rates on specific phasesSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Fair Labor Standards Act(FLSA) “Overtime” wages for hours actually worked over 40in a week (or 8 hours in a day) Overtime rate is equal to 1.5 times the “average”regular rate of pay– 10.00 regular rate ( 10.00 dived by 2) 5.00 15.00per hourSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Weighted-Average Overtime Works on two or more jobs at different rates of pay Works under two or more work/trade classificationsat different rates of pay for the same employer, inthe same work weekSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

How is Weighted-AverageOvertime Calculated?50 hours – 25 hours @ 10.00 and 25 hours @ 12.00––––(25 x 10) 250.00 (25 x 12) 300.00 550.00 550.00 divided by 50 hours 11.00 weighted-average rate of pay 11.00 ( 11.00 divided by 2) 5.50 16.50 overtime rate of pay(40 x 11.00) 440.00 (10 x 16.50) 165.00 605.00 gross paySunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Who must pay using “weightedaverage” overtime? Construction, healthcare, and manufacturingindustries– Pennsylvania, Utah, New Jersey, North Carolina,Maryland, Florida, Ohio, Colorado, *Oregon.*Oregon’s weighted-average overtime law is slightly different than the Federal Law.Sunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

How are QuickBooks UsersCurrently Complying?Manually creating reportsUsing Excel to create reportsUsing a “stand-alone” programUsing the built-in “alternate” certified payroll reportin QuickBooks Premier/Enterprise IF they have anEnhanced Payroll subscription Buying expensive construction specific software Sunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Do these methods REALLYwork? Need to run multiple QuickBooks reportsExtremely error-proneTime consumingEntering the same data in multiple programsReports do not contain all required dataSunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

Come back for the afternoon session to see how ourintegrated QuickBooks applications utilize yourexisting QuickBooks data to automate these timeconsuming requirements – making compliance abreeze!Sunburst Software Solutions, Inc. Copyright 2000 – 2010 All Rights Reserved http://www.sunburstss.com

3rd party developer of QuickBooks Add-ons since 2000 Intuit Premier Level Developer since 2001 Intuit Gold Developer since 2006 . Prevailing wage rates will differ based on the type of work the employee performs and their level of skill –Can change by city, county, and jobFile Size: 2MB