I need help with setting up Davis-Bacon wages

Kris56283 · ‎December 12, 2022

I need to run payroll based on prevailing wages. I am based in Minnesota. How do you set up wages less fringe benefits? I am using QuickBooks Enterprise Solution: Contractor 23.0.

FateCandylaneT · ‎December 12, 2022

I appreciate you reaching out to us in the Community, @Kris56283.

Let's ensure you're able to set up prevailing wages (Davis-Bacon rate) for each of your employees.

With QuickBooks Desktop (QBDT), the prevailing wage is defined as an hourly wage. It depends on whether you tag it as Regular or Overtime pay. I'd recommend consulting your accountant to know the best way to set up and track prevailing wages. To proceed, we'll have to create the wage item manually.

Here's how:

Click Lists at the top menu,
Select Payroll Item List. Then, click the Payroll Item button and select New.
Select Custom Setup and click Next.
Select Wage and click Next.
Select Hourly Wages and click Next.
Select either Regular Pay or Overtime Pay.
Enter the additional details and click Next.
Once done, click Finish.

To create an item for fringe benefits, here's how:

On the Lists menu, select Payroll Item List.
Select Payroll Item and click New.
Select Custom Setup.
Select either Company Contribution or Addition, and select Next.
Enter a name for this item and click Next.
Select an Expense and Liability account from the drop-down lists and tick Next.
Select Fringe Benefits from the Tax Tracking Type drop-down and click Next.
Once everything's settled, click Finish.

You can either add these items to your profile or directly add these to your employee's paychecks. For more detailed information, refer to this article: Add fringe benefits to paychecks.

Once done, we can run a Certified Payroll report showing prevailing wages (Davis-Bacon wages). For each payroll period, the contractor must create a certified payroll report to show the wages paid to each worker. There are requirements needed to acquire to create a Certified Payroll report:

You must have a full version of Microsoft Excel.
Run QuickBooks as the Administrator.
Log in as the QuickBooks Admin and in Single-User Mode.
Use the QuickBooks Desktop time tracking feature.

For more insights, I've added this link to learn how to create the certified payroll report: Certified Payroll.

Feel free to get back to us if you require additional assistance with running payroll. The Community is here to help. Take care!

View solution in original post

FateCandylaneT · ‎December 12, 2022

I appreciate you reaching out to us in the Community, @Kris56283.

Let's ensure you're able to set up prevailing wages (Davis-Bacon rate) for each of your employees.

With QuickBooks Desktop (QBDT), the prevailing wage is defined as an hourly wage. It depends on whether you tag it as Regular or Overtime pay. I'd recommend consulting your accountant to know the best way to set up and track prevailing wages. To proceed, we'll have to create the wage item manually.

Here's how:

Click Lists at the top menu,
Select Payroll Item List. Then, click the Payroll Item button and select New.
Select Custom Setup and click Next.
Select Wage and click Next.
Select Hourly Wages and click Next.
Select either Regular Pay or Overtime Pay.
Enter the additional details and click Next.
Once done, click Finish.

To create an item for fringe benefits, here's how:

On the Lists menu, select Payroll Item List.
Select Payroll Item and click New.
Select Custom Setup.
Select either Company Contribution or Addition, and select Next.
Enter a name for this item and click Next.
Select an Expense and Liability account from the drop-down lists and tick Next.
Select Fringe Benefits from the Tax Tracking Type drop-down and click Next.
Once everything's settled, click Finish.

You can either add these items to your profile or directly add these to your employee's paychecks. For more detailed information, refer to this article: Add fringe benefits to paychecks.

Once done, we can run a Certified Payroll report showing prevailing wages (Davis-Bacon wages). For each payroll period, the contractor must create a certified payroll report to show the wages paid to each worker. There are requirements needed to acquire to create a Certified Payroll report:

You must have a full version of Microsoft Excel.
Run QuickBooks as the Administrator.
Log in as the QuickBooks Admin and in Single-User Mode.
Use the QuickBooks Desktop time tracking feature.

For more insights, I've added this link to learn how to create the certified payroll report: Certified Payroll.

Feel free to get back to us if you require additional assistance with running payroll. The Community is here to help. Take care!

FaithFinanceAK · ‎June 05, 2024

How would you now set this up in Quickbooks Online, when the only options are Weekly, Bi-Weekly, Semi-Monthly, or Monthly?

There are also times when an employee is terminated, and will need a separate check issued outside of the regular payroll schedule due to the DOL.

SashaMC · ‎June 05, 2024

Hello FaithFinanceAK,

Thank you for chiming in on the thread. Could you clarify what type of frequency you are looking for? In the meantime, I will add the steps below on how to run an unscheduled payroll in QuickBooks Online.

Go to Payroll, then select Employees
Select the ▼ dropdown, and select one of the following options: Bonus only, Commission only or Fringe benefits only.
Based on your selection, you may be asked additional questions. Enter any info about taxes or paycheck calculations (if applicable). Once complete, select Continue.
Choose or review the pay period and pay date.
Pick the employees you'd like to pay.
Select the column, or select Actions ⋮, then Edit paycheck to enter your pay details. You can enter hours, compensation, memos, or any other paycheck info as necessary.
Click Preview payroll.
Select or review the QuickBooks bank account to track your payroll.
Click Preview payroll details, Save for later or Submit payroll.
Select Close.

You can review this article about creating and running payroll for more information!

Create and run your payroll

I will be looking forward to your reply! See you in a few!

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I need help with setting up Davis-Bacon wages