Question

Setup and process Davis Bacon for employee that works DB part of the pay period and salaried the rest of the period

Forum|Forum|3 years ago
March 8, 2023
2 replies
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We have a Davis Bacon project. The employees assigned to this project are salaried and hold management positions. These employees do not work solely on this project. What is best QB payroll practice for pay and DB compliance reporting?

QuickBooks Desktop

F

FateCandylaneT

I've got you covered, 309BBulifants.

I'm here to ensure you're able to set up prevailing wages and run payroll reporting for each of your employees.

In QuickBooks Desktop (QBDT), once these wages have been paid, they must be reported on the certified payroll reports. I'd recommend consulting your tax adviser to know the best way to set up and track prevailing wages for your employees. To guide you in creating wage items manually, you can refer to these steps:

Set up prevailing wages.
Set up job costing.
Set up time tracking.
Run your payroll using time tracking and job costing.
Create a certified payroll report.

For more detailed information and steps, visit this article: Create prevailing wages and certified payroll reports in QuickBooks Desktop Payroll. Also, you'll want to check out this reference to learn more about prevailing wages and certified reports: Prevailing wages and certified payroll reports.

Moreover, I've added this article to guide you on how to pay and track fringe benefits on your employee's paychecks: Add fringe benefits to paychecks.

You're always welcome to reply in this forum if you require further assistance setting up and processing prevailing wages. We'd be delighted to hear more from you. Keep safe and have a good one!

3

309BBulifantsAuthor

I've got the basic setup part. But given that, during the pay period for salaried employees that include DB work AND non-DB work is it best practice to calculate their pay on an equivalent (standard) hourly rate and then subtract the hours paid under DB from the total hours available under standard (salaried converted to hourly) pay? Do I end up with two payroll lines for the employee for that period? Both calculated at the hourly rate of the DB and standard amounts? How do I adjust standard fringe benefits to accommodate calculated DB fringe benefit so the payroll record is correct?

Thank you for your help.

G

GebelAlainaM

Thanks for the detailed information, @309BBulifants. I understand the importance of tracking your payroll accurately in your QuickBooks Desktop (QBDT) Payroll account. I'm here to share some details.

In your case, you can run a separate payroll for hourly and salaried pay types for your employees.

You can check out this article to learn how to calculate the hourly pay rate of a salaried employee or prorate an employee's fixed salary in QBDT Payroll: Adjust payroll liabilities in QuickBooks Desktop Payroll.

On the other hand, you'll want to correct employees’ year-to-date (YTD) or quarter-to-date (QTD) payroll info in QuickBooks Desktop Payroll, you can do a liability adjustment to fix them.

Let's start by locating the payroll discrepancies by running a payroll summary report and customizing the date of the report base on the information you need. After that, you can proceed with adjusting your payroll liabilities.

Here's how:

Go to the Employees menu.
Choose Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
Select the last paycheck date of the affected month or quarter on the Date and Effective Date fields.
In the Adjustment is for: section, select Employee Adjustment to correct the employee’s YTD info.
Under the Item Name column, select the payroll item you want to adjust.
Enter the Amount of the adjustments. Use a positive amount to increase if the item is under-withheld. But if the item is over-withheld, enter a negative amount to decrease.
Enter an amount under the Income Subject to Tax column if you need to make a wage base adjustment.
Under Memo, enter a note about the adjustments for reference.
Select Accounts Affected, then OK. You can select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustments will only change the year-to-date amounts on your payroll reports. Then, you can choose Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.
Then click OK to save the changes.

For additional details, check this article: Adjust payroll liabilities in QuickBooks Desktop Payroll.

Once done, pull up the Payroll summary report to verify if everything is settled.

Keep me posted if you have any other payroll concerns in QuickBooks Desktop. Keep safe always!

BigRedConsulting

@309BBulifants RE: The employees assigned to this project are salaried and hold management positions. These employees do not work solely on this project. What is best QB payroll practice for pay and DB compliance reporting?

You do not need to do anything Intuit is suggesting.

You should always pay salaried employees with salary items. The Certified Payroll report will work fine when you do.

To do this, as you create paychecks for salaried employees, enter the salary item(s) and the hours the employee works on each job (or no job) just as you would when using Hourly pay items.

When you do this, QuickBooks will split the salary based on the hours worked. For example, if the employee works 40 hours per week as a default, and they make $1000 per week, and they work 25 hours for the Certified Job, enter the earnings like this on the paycheck:

Note that you can mix and match different Salary items on the check, so you can name them as needed for the Work Classification on the Certified Payroll report.

Later, when you create the report, the pay will appear like this:

Note that the report reverse-calculates the Pay Rate from the hours and amount paid. It also (correctly) shows the Total gross pay of $1,000 just as it does for hourly employees - per the instructions.

S

steveejok

We do the same as you and there is no issue with payroll where QB pro-rates salary to jobs. However, on the certified payroll report in QB, it does not include the salaried employee on the certified payroll page of the report, but only shows the salaried on the fringe benefit details page, as if their salary is a fringe benefit. I can't seem to get a salaried employee onto the actual certified payroll page of the report. Any suggestions on how to solve this would be helpful.

Angelyn_T

Thank you for joining the thread today, Stevee. It's my priority to help you get the information you need with your certified payroll report in QuickBooks Desktop (QBDT).

I can see that your salaried employee isn't showing up on the certified payroll page. I'd love to check this further for you, but I need to gather enough information to narrow down this further. However, I won't be able to display personal details in this forum for security reasons.

For now, I recommend contacting Payroll Support for further assistance. From there, a live representative can look into your account securely and run through your report. From there, they can help you with proper setup and customizations.

To contact support:

Open QuickBooks.
Go to Help, then select QuickBooks Desktop Help/Contact Us.
Tap on Contact Us.
Enter a short description of your concern, then Continue.
Choose a way to connect with support.

Support is open M-F from 6 AM to 6 PM PT.

On the other hand, I'm adding these resources as your guides while setting up wage items and generating certified payroll reports:

If there's anything else you need assistance with your payroll entries, let me know by leaving a comment below. I'm more than happy to help you again. Have a good one!

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