Payroll Compliance Can Be Tricky — How One Small Construction Firm Does It Right
Learn how Mazzoni Mechanicals complied with the prevailing wage reporting requirements of the Davis-Bacon Act.
Managing compliance with federal, state and local payroll laws can be complicated even for a large construction company. So, when a customer of Mazzoni Mechanicals LLC, a small plumbing, heating and cooling firm in the Philadelphia area, had applied for a state work grant, it required Mazzoni Mechanicals to supply certain wage data.
In this case, because a customer had applied for a state work grant, that triggered the need for Mazzoni Mechanicals to supply data guaranteeing compliance with Davis-Bacon reporting for "prevailing wages" regulations.
Specifically, the Davis-Bacon Act of 1931 requires businesses to pay prevailing wages on public works projects. A prevailing wage is an hourly wage, usual benefits, and overtime paid to the majority of workers, laborers and mechanics within a specific geographical area. Noncompliance can be costly due to owing back wages and Department of Labor fines. Also, violators may be barred from future contracts for up to three years.
To help manage Davis-Bacon compliance, Mazzoni Mechanicals implemented Points North Certified Payroll Reporting, which integrates with RUN Powered by ADP®, Mazzoni Mechanicals payroll solution. The team purchased Point North via ADP Marketplace, a digital HR storefront that allows ADP® clients to customize their human capital management (HCM) ecosystem and share data with their ADP platform. So far, Claudio Mazzoni, the company's president, says the solution has had a clear, positive impact on accuracy and efficiency regarding Davis-Bacon reporting.
"We're small, with just three full-time employees," Mazzoni explains. "When we got this prevailing wage project, we didn't know how to do the payroll for reporting compliance, so we wasted time on it. It's now a smooth, accurate, hassle-free process. It gives us more opportunity serve our customers, as well as prospect for new business."
Prior to using Points North, a friend of Mazzoni's verified the company's Davis-Bacon reporting on his computer and had to calculate all the deposits manually. "It was really tough, and sometimes my friend wasn't sure how to proceed," Mazzoni says. Also, it was extremely difficult to coordinate with his friend, and Mazzoni often turned in the reports late. The result? Delayed payments to the company.
"With Points North, that went away. I don't have to chase anyone to do the reports," he says. "By default, ADP Marketplace saved us time and money."
Points North not only allows Mazzoni more time to focus on the firm's actual work, but it also helps with cash-flow basics, Mazzoni says.
Mazzoni also singled out the outstanding customer support from Points North's Jesse Connor, noting that whatever the time of day, Connor stands ready to help sort out any issues. "I email Jesse and within an hour he calls me," Mazzoni says.
Regarding Davis-Bacon reporting needs, Points North helps by delivering direct integration with RUN Powered by ADP, which allows for employee data and paycheck values to flow directly onto prevailing wage reports each pay period. Finally, firms like Mazzoni Mechanicals can depend on the certainty of staying in compliance with Davis-Bacon reporting, without the risk of having payments held up.
"Best of all, it keeps getting easier," Mazzoni says. "When I do the biweekly payroll on ADP, it syncs automatically with Points North. It not only saves us time and money, but it also delivers the peace of mind knowing that we are within compliance regulations, all within a smooth process."
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