Certified Payroll Time Tracking

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

Tools Supporting Certified Payroll

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:

• Annual savings: $4,500+

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:

1. Certification: WH-347 form generation
2. Flexibility: Multiple classifications per employee
3. Rates: Support complex rate structures
4. Reporting: Automated compliance reports
5. Integration: Works with existing payroll
6. Support: Vendor understands Davis-Bacon
7. Updates: Keeps current with regulation changes
8. Mobile: Field-friendly for job sites