Certified payroll, Benefits reducing the rate calculation question

Userlevel 2


We are newly implemented and working through our first certified projects.

For our employees that we offer health insurance and 401k, the certified calculation isn’t quite right. 

You can annualize or not the benefits.This changes the way the calculation works for benefits reducing the rate.

When you annualize health insurance it works more accurate as the cost is divided out over the anticipated hours per year.

401k, if you annualize the rate, it divides those dollars over anticipated hours per year.  Which can under report contribution and require us to over pay the employee.

if you don’t annualize it, it over reports and under pays the employee.

For example.  We match 4% of hourly rate for the 401k. If an employee works 10 hours on a certified job and 30hrs on regular job.  It takes the 4% match on all 40hrs and divides by the 10.  We want the 4% of 10hrs divided by the 10hrs. 

So we are either over paying or under paying the prevailing wage job.  The other issue, we work non-consistent hours.  We can work 10-60hrs a week depending on weather and a mixture of certified vs non-certified jobs.

Let me know if you have any suggestions.





2 replies

Userlevel 1

Our company is running into a similar issue with certified payroll and benefits reducing the rate. This is our 1st certified project since implementing Acumatica. We provide 8 different fringe benefits to our employees regardless of certified vs. noncertified projects. These benefits are In-house Safety Director, Training Wages, PTO, Holidays, Annual Bonus, Retirement Contributions (ESOP), Life Insurance & Health Insurance. Some of these benefits require an employee provide 1 year of service before they are eligible. For the Health Insurance, our company pays a portion of the premiums only if they sign up so we have some employees who don’t sign up for and therefore do NOT receive the benefit. We are finding that Acumatica cannot accommodate this at the employee level. It is either ALL or NOTHING if a benefit is listed for that certified job. How are other construction companies handling this issue? We don’t want to reduce a rate if an employee is not eligible for a benefit nor do we want to overpay an employee if they are receiving more of a benefit. For example, some employees have 1 week or 2 weeks of PTO. Therefore, those employees with 2 weeks of PTO should have their benefit rate reduced more than those with only 1 week of PTO.

Userlevel 2

If the employee does not have the benefit in there employee settings, its still reducing the benefits?  I am not seeing that on my end.  If an employee has a benefit, it is then reducing the rate. 

My issue is the the calculation on how it reduces the rate. I have a support case in asking about this issue. 

The best work around I found is to not Annualize the benefit and then change the annual hours and weeks in there employee profile to one 40hr week.

This at least gets it close.

The bottom screen, the HPEO is our employer sponsored health insurance.  The $287.56 is the weekly cost of that insurance.  Divided that by the 40hrs it seems to be reasonable





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