CONC – Contractor Calculator Support

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This sections helps you to understand the different features of CONC.

 

Set Up–ADD STRUCTURE
Here you enter your business classifications, employees, and subcontractors.

 INDEPENDENT CONTRACTOR/SUBCONTRACTOR

Use the Add Contractor menu to enter all required information about the independent contractor or subcontractor you want to hire. Dependent upon the company being a sole proprietor with no employees, all boxes should be filled in. The Account Number boxes should have several State assigned account numbers in addition to a contractor license number. The reason to enter classifications for contractors is to verify their Scope of Work and reporting compliance. (The asterisks are required fields used throughout the program.)

Contract start and end dates need to be filled for record keeping compliance. Best estimates are acceptable.

Total Contract Amount is for the entire contract. Most states like Washington and California require that labor be broken out from the Total Contract Amount if the BID or quote has both. If you hire them on an hourly basis, the Labor Rate needs to be entered here.

If the contractor is doing Piecework, then work hours have to be signed for on the Contractor Timesheet for record keeping compliance in addition to the Units such as square feet, lineal feet, or roofing squares.

The Scope of Work can be for any reason such as describing what this contractor will be doing or special instructions. The Sales Tax box is to remind you to get a Resale Certificate from a State revenue or Industrial Relations office as applicable.

Print this data before you submit it for a complete historical record before adding the next contractor. If the contract is modified or completed, edit it in the Contractors report.

 BUSINESS RISK CLASSIFICATION

Use Add Classification to enter the business risk assigned to your business for independent contractors and subcontractors. To find these numerical codes, rates and descriptions, look at your last workers’ compensation report you filed or call your policy manager in the State you are doing business. You must add the year in front of every classification description for historical data capability.

Record keeping requirements demand you link a classification with a contractor that may have prevailing wage reporting requirements. If you are audited, this information will reduce your assessment of premium taxes and penalties.

After you have entered the basic classification number, enter any sub classification such as -01, and describe the task that contractor is doing from the classification description. Next, enter the premium or tax rate that has been assigned.

After the Classifications are entered in the program, you can edit them from the Classification Report for the employees, contractors, and projects.

 COMBINE CONTRACTOR & CLASSIFICATION

 The Combine Contractor & Class menu is to create a contractor with a working classification and the current pay rate. This copies to the Timesheets and Add Contractor Hours menu to make sure there are no data entry errors. Contractors can have more than one classification.

TIMECARDS and ADDING HOURS

This section prints contractor timesheets. You have to record hours and units produced for contractors in case you have a claim or audit by any state agency.

TIME CARDS

Printout Employee Timesheets: The Timesheets can be customized to fit your company’s way of doing business. No two companies will use this program the same.

By first identifying the Pay Period dates and reporting quarter, you can use the pull down menu to identify the contractor and his/her classification number to print out his Timesheet. If this contractor is to be reported in more than one classification, you print out those different Timesheets for his signature.

Use the Comment field for reminders, assigning working locations, or anything else you can think.
You can place the units and hours in any box to fit your way of doing business to conform to correct record keeping requirements. Units must be captured for square foot of sheetrock, number of roofing squares, siding, windows installed, framing square footage, concrete yards or square foot laid, etc.

The REIMBURSEMENT area is for capturing materials or meals paid so that this is not considered labor. Any BONUS amount is placed here for the same reason. (The page prints at 70% or 80% on most systems so the footer does not come as a page 2.)

In order to be in compliance, independent contractors (subcontractors) must report hours worked. For example, a commissioned independent contractor salesperson’s hours should be recorded at 8 hours per day, or your firm will be subject to penalties including capturing this person as a full time employee estimated at 160 hours per audit guidelines.

Piece work units and hours will be recorded as a standard record keeping reporting requirement. An Average Hourly Wage will be used to estimate hours if there is no signature on this Timesheet from the amount paid. Usually, this ends of doubling the premiums and taxes.

When the signed Timesheets are returned, PAYROLL will use these sheets to Add Contractor Hours for regular hours, authorized payments, units, and any reimbursement and/or bonus payments.  Accounts Payable will reimburse the contractor with the proper documentation with separate checks for reimbursements and bonuses.

Make sure everyone signs these legal documents as to the true hours worked – including the piecework and special industry independent contractors. State regulations state you have to print and get a signature on the Add Contractor Hours timesheet per record keeping requirements. This will help during audits to prevent estimated hours and excess penalty taxation.

ADDING CONTRACTOR HOURS

When adding contractor hours, the Timesheets are used to verify and record the hours and units in a 4-step process to secure accuracy. If you are not sure of this entry before submitting, just use the back button or “HOME” to start a new record. Erroneous entries can be edited for compliance records keeping requirements.

Step 1 is to verify the Pay Period, Quarter, Type of Labor, Contractor, and Classification. Remember, you may have more than one Classification such as building remodeler and concrete work. Verify the written signature from the Timesheet before you continue to Step 2 for compliance record keeping.

Step 2 is used to enter the hours worked. The Scope of Work is entered here for reference. These hours are propagated into the Contractor Summary report from this page. The Check box does the math, and the Save & Next box gets you to Step 3.

Step 3 is used to record hours, authorized payments, units, reimbursements, and any bonuses. Use the Contractors report and the Contractor Timesheet page to verify and enter data. Verify contract amounts of any labor and materials, hours, type of labor, authorized amounts, which risk classification used, units produced. Regardless of the Type of Labor, hours will be kept per record keeping requirements in all states for potential audit purposes.

You already entered the risk classification for this contractor. So, if you get audited and the contractor turns out not to be registered, you pay for the hours he worked, not some estimated taxes and penalties.

Regular Hours and Hourly Rate are recorded here using the Rate of Pay (from the top of the form) if this is labor for a time and materials or prevailing wage contract. Record Units here if this is a piece work contract such as installed siding footage or roofing squares.

For bids, Regular Hours and Hourly Rate: If paying on a bid amount, you would still put the recorded hours from the Contractor Timesheet in Regular Hours, but put a (1) one in the Hourly Rate to capture these hours in the program. Then place the Authorized Payment amount here. If the Authorized Payment is based on a unit price, put the Rate of payment for each Unit here to calculate the Authorized Sum.

Reimbursement and Bonus amounts are recorded here for payment as long as there are receipts and other documentation so that these dollars are not considered wages. Separate checks can be issued for these amounts.

If you are reporting salary subcontractors, you still have to use an hourly wage in the program for compliance purposes. If your state makes you report hours, edit the contractor wage to calculate the hourly wage if the salary paid is the same, and use the Bonus to pay the balance of the salary. For those states that calculate workers’ compensation on a percentage of wages, report the hours and wages.

The Calculate box is to do the math for you. The Save & Next box leads you to Step 4 which is a summary of your input for one last verification. Use the Refresh, Back, and Retry buttons to make any corrections.

Add Hours for Commissioned Sales or Contracts

 When an independent contractor (IC) is hired, an estimated Rate of Pay is entered in Add Contractor. It is a general figure and can be edited before each Add Hour entry BUT not required unless revision is required by the subscriber.

After the initial estimated Rate of Pay is entered, it does not need to be adjusted or edited in the system every time a new pay period for these commission amounts are entered.

When entering in Step 3 data, enter Regular Hours and Authorized Payment, any Units (for building and manufacturing industry folks), Reimbursement and Bonus amounts at this time. Then, use the estimated Hourly Rate in the box to calculate Gross Wages for the system. You can use the Step 3 as a calculator.

Then, place a “1″ Rate below to capture the capture the authorized payment (that can be different than the gross wages but is to show on purpose for compliance record keeping). No need to sit by a calculating or adding machine to change the Rate of Pay each time.

This simple exercise will make it easier to enter this commission data.

The program formulas for workers compensation and unemployment insurance are as follows: workers compensation captures hours and dollars for hours, overtime, and holidays. Employment insurance captures hours and dollars for hours, overtime, vacation, holidays, but adds bonus dollars.

Additional use of these Steps for historical data:
This step can be used to record historical pay period hours and dollars. By printing out in landscape at 80%, the employee can sign to verify this data. For those companies that record pay periods without daily recording of hours, such as weekly or monthly, this step can be used to get the required signature for each pay period. Note: This feature is not meant to be used to replace Timesheets.
If you use this page, make sure you distribute the Total Hours Worked correctly.

EDITS

  • Contractors can be edited for adjustments to the contract and start and stop dates, and more.
  • Classifications can be edited for any changes in rates within the current year. Annual rates are added as a new Add Classification entry to preserve historical reports.
  • Combination Pay Report can be edited for contractor rate of pay and any changes in classification data.

REPORTS

  • Contractor Hours Detailed
  • Contractor Hours Subtotaled

These reports are used for PAYROLL and ACCOUNTS PAYABLE and shared with any payroll program via your login and password.

These entries are fixed to prevent fraud and conform to regulatory agency record keeping reporting policies to ensure compliance.

This report is can be used to provide workers’ compensation data to reporting agencies.
Since these reports are generated as you enter independent contractor data, they are continuously updated. You can create any timeframe report in five seconds. All you have to do is print these or copy the data onto the State forms.

Benefits to Using CONC

Below is a list of reasons why using CONC will benefit your business.

  • tracks the different business risk classifications assigned to contractors
  • ensures your contractors are assigned correct classification(s)
  • replaces piece work estimates for reporting construction industry hours
  • supports the use of special industries and their reporting guidelines
  • great for cash flow analysis for payroll taxes
  • online support, education, webinars and seminars
  • provides proof of record keeping timecards and signatures for any field audit for your subcontractors per multiple departmental regulations and written policies
  • ensures compliance with reporting to the different State agencies
  • saves time and money reporting to your accountant or bookkeeper
  • can use different time frames for analysis. For example, to check on when a project was completed and what was paid, when a contractor started and ended, and when the last check or pay period occurred or any other analysis.

Additional services are available for audit appeals and preventative consultations.  We can analyze your business model to make sure you are in compliance, evaluate contracts and proposals, and make suggestions to save premiums and taxes from our years of helping many small businesses.

Payroll and tax preparation programs such as QuickBooks, Payroll Solutions, Paychecks, ADP, H&R Block, and more, can recommend this program to help their clients’ report these taxes simple, quick, and accurately. Ask one of their representatives to contact us to create simple, quick, and accurate reports.

magnifying_man-planning_pageOther Support Items

(additional charges may apply)

 

  • Phone Support
  • Onsite Audit Support
  • Onsite Appeals Support
  • Contract Analysis
  • Contract Writing
  • Audit Reviews
  • Appeals Review
  • External Audits

Questions? Contact Help Desk

Email: tcarlsonCFE@gmail.com

Helpdesk is used to assist you after you have entered the data required to run the program.

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