Companies that work on government contracts must often comply with Davis-Bacon and related acts (DBRA), and must carefully compare time card and rate data against local, state or federal prevailing wage regulations. If your organization is already using automated payroll testing to identify potential inaccuracy during a prevailing wage payroll process, it can be easy to auto correct or auto generate accurate time and rate data, greatly simplifying each payroll run and increasing the probability that time cards are 100% accurate.
What Types of Prevailing Rates Can be Automated?
Because prevailing wage rates are published by US government agencies, it is always possible to find them online in a database, or through a web portal. With a bit of careful set up, rates can be stored in a format that is easy for computer programs to read, which means they can be integrated with your organization’s time card or payroll data to automate payroll processes or perform accuracy checks.
- Federal prevailing wage rates change infrequently, and are easy to store in Excel, Google Sheets, CSV or other data formats.
- State prevailing wage rates vary for each state that has its own prevailing wage program. Some states have already published rates in “machine friendly” format, others will require more manual effort to convert to spreadsheet or CSV files.
- Local prevailing wage rates very even more than state prevailing wage rates, and can require special attention from a prevailing wage consultant or experienced prevailing wage payroll business partner.
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Why Automate Prevailing Wage Payroll Processes?
If you are prevailing wage payroll process involves accounting for dozens or hundreds of employee time cards, or accounting for multiple local rates and crafts, it can become difficult to finish even one payroll without performing hundreds of time consuming manual rate checks. After checking, double checking or even triple checking rates, even the most careful and talented human administrators can still make mistakes.
Automated prevailing wage technology can match employee time card data with the correct class, location, and predetermined increase / fringe benefit values, even when those values vary by project or by employee. When processing payroll for multiple employees or multiple projects, automation is a “must-have” that can prevent expensive fines and penalties later on.
Is Prevailing Wage Automation Included with Valet?
Simple prevailing wage automation requires two data sources at minimum, and can be included in the basic edition of Valet. If your solution needs to read multiple types of rates, or extract data from several different sources, consider using the accelerated or enterprise edition of Valet.
Valet Data Platform
Ensure payroll accuracy and simplify HCM workflows with Valet – connect your HCM system to external data sources to verify rates, streamline employee data and more.
- Connect to external rate tables or applications
- Validate time card or payroll data early in your process before inaccuracies stay in your system
- Develop custom integrations or applications using Valet
- Experience fantastic ongoing support