Overview
Certified Payroll Time Tracking provides the specialized functionality construction contractors need to comply with Davis-Bacon Act requirements when working on federally-funded projects, including prevailing wage tracking, detailed job classification, and automated certified payroll report generation.
Regulatory Background
Davis-Bacon Act
Federal law requiring contractors and subcontractors on public works projects to:
- Pay workers prevailing wages for their trade and location
- Track hours by job classification
- Submit weekly certified payroll reports
- Maintain detailed time and wage records
- Post wage determinations at job sites
Applicability
Required for federal contracts exceeding $2,000 including:
- Highway construction
- Building projects
- Heavy construction
- Alteration and repair work
Key Time Tracking Requirements
Employee Classification
Track time by specific job classifications:
- Carpenter
- Electrician
- Laborer
- Operator (various equipment types)
- Ironworker
- Plumber
- Multiple classifications per worker
Multiple Rates
Support different pay rates for:
- Base rate
- Fringe benefits
- Prevailing wage rates
- Overtime calculations
- Different rates for different classifications
Project-Level Tracking
Separate time by:
- Job site/project
- Prime contractor
- Sub-tier level
- Funding source
Essential Features
Automated Wage Rate Application
Software automatically:
- Applies correct prevailing wage based on classification
- Adjusts rates by geographic location
- Updates when wage determinations change
- Flags rate discrepancies
Certified Payroll Report Generation
Auto-creates WH-347 forms with:
- Employee names and identification
- Job classifications
- Hours worked per day and week
- Rates paid
- Deductions taken
- Net wages
- Statement of compliance
Daily Time Cards
Detailed records showing:
- Exact job site location
- Hours by classification
- Equipment operated
- Break times
- Weather delays
Workyard
Construction-specific features:
- GPS-verified time at job sites
- Multiple classification tracking
- Automated WH-347 generation
- Prevailing wage rate libraries
- Compliance alerts
Timesheet Mobile
Project+ version includes:
- Certified payroll exports
- Job classification management
- Rate table administration
- Davis-Bacon compliant reports
ExakTime
Government contractor edition:
- Certified payroll module
- Fringe benefit tracking
- Multi-state wage rates
- Audit-ready reports
Compliance Challenges
Multiple Roles Per Worker
Employee might work as:
- Laborer (morning)
- Equipment operator (afternoon)
- Different rates apply to each period
- Must track time separately
Solution: Time tracking allows switching classifications during day.
Fringe Benefits
Prevailing wage includes:
- Base hourly rate
- Fringe benefit amount
- Can be paid as cash or benefits
- Must be documented separately
Solution: Software calculates and reports both components.
Weekly Reporting Deadline
Certified payroll due:
- Weekly (typically Monday for previous week)
- Strict deadlines
- Penalties for late submission
Solution: Automated generation reduces preparation time from hours to minutes.
Audit Requirements
Record Retention
Must maintain for 3 years:
- Time cards
- Payroll registers
- Canceled checks
- Classification documentation
Inspector Requests
Be prepared to provide:
- Proof of wages paid
- Time tracking records
- Classification justifications
- Fringe benefit documentation
Common Audit Triggers
- Employee complaints
- Wage discrepancies
- Missing reports
- Classification questions
Penalties for Non-Compliance
Financial
- Back wages owed
- Liquidated damages
- Civil fines up to $10,000
- Contract termination
Operational
- Debarment from federal contracts (3 years)
- Reputational damage
- Lost bonding capacity
- Project delays
Best Practices
Classification Training
Ensure superintendents know:
- Proper worker classifications
- When to use each category
- How to handle multi-role workers
- Rate differences
Daily Review
Project managers should:
- Review time entries daily
- Verify classifications are correct
- Confirm hours are accurate
- Address issues immediately
Rate Table Maintenance
Regularly:
- Update prevailing wage rates
- Add new classifications
- Adjust for locality
- Document rate sources
Pre-Project Setup
Before starting work:
- Load applicable wage determinations
- Configure job site geofences
- Train crew on time tracking
- Test reporting output
Integration with Payroll
Data Export
Seamless transfer to payroll systems:
- Hours by classification
- Rates to apply
- Project codes
- Cost allocation
Verification
Cross-check that:
- Time tracking hours match payroll
- Rates paid match prevailing wages
- Classifications consistent
- Reports align
ROI for Contractors
Time Savings
Automated certified payroll:
- Manual preparation: 2-4 hours per week
- Automated: 15-30 minutes per week
- Savings: 90+ hours annually
At $50/hour administrative cost:
Risk Reduction
- Avoid compliance penalties
- Reduce audit failures
- Prevent project delays
- Protect debarment risk
Value: Potentially millions in retained contract eligibility
Accuracy Improvement
- Eliminate calculation errors
- Ensure proper classifications
- Complete documentation
- Defensible audit trail
Selection Criteria
When choosing time tracking for certified payroll:
- Certification: WH-347 form generation
- Flexibility: Multiple classifications per employee
- Rates: Support complex rate structures
- Reporting: Automated compliance reports
- Integration: Works with existing payroll
- Support: Vendor understands Davis-Bacon
- Updates: Keeps current with regulation changes
- Mobile: Field-friendly for job sites
