A Real-World Week for One Employee
The same employee can work different projects, perform different types of work and be subject to different payroll treatment – all in the same week. Your payroll system needs to preserve that detail.
Illustrative week
| Day | Project | Work Classification | Hours | Payroll Treatment |
|---|---|---|---|---|
| Monday | Private Project | Carpenter | 8 | Regular Payroll |
| Tuesday | Public Project A | Carpenter | 8 | Prevailing Wage |
| Wednesday | Public Project A | Laborer | 8 | Prevailing Wage |
| Thursday | Private Project | Carpenter | 8 | Regular Payroll |
| Friday | Public Project B | Laborer | 8 | Prevailing Wage |
| Total Hours | 40 | |||
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40 HOURS doesn’t tell payroll enough.
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Employee + Project + Work Classification + Hours + Applicable Rate + Fringe Information
gives payroll the detail needed to process the week accurately and support certified payroll, job costing and reporting.
What Is Prevailing Wage?
New Jersey’s Prevailing Wage Act requires covered workers on applicable public works projects to receive the appropriate craft prevailing wage rate. NJDOL explains that prevailing-wage rates vary by locality and by the type of work performed, and official project wage determinations list wage and fringe-benefit rates by classification.
The official prevailing-wage determination for the specific project is the controlling source. Contractors are also responsible for predetermined increases identified in that determination.
Prevailing Wage = Wage Rate + Applicable Fringe Benefit Rate
Eligible fringe-benefit credit may include the employer’s actual cost of certain benefits such as medical or dental coverage, pension or retirement plans, paid time off and life insurance. NJDOL identifies other employer costs that cannot be credited toward the prevailing-wage fringe requirement.
Don’t Make Your Payroll Person Remember the Rules for Every Hour.
Capture the detail up front. Then let the payroll setup do its job.
Employee
Who performed the work?
Project
Where was the work performed?
Public / Private
What type of project is the employee working on?
Work Classification
What work did the employee actually perform?
Hours
How much time belongs to each project and classification?
Applicable Rate / Fringe Information
Use the appropriate project wage determination and payroll setup for the work being processed.
Capture the detail during payroll entry – not after payroll is finished.
Why Classification and Hour Detail Matter
Pay for the Work Actually Performed
NJDOL states that contractors and subcontractors on covered public projects must pay prevailing-wage rates based on the work classifications actually worked for all actual hours of work.
Keep the Hours Organized
Public-works payroll records include actual daily, overtime and weekly hours worked in each craft or trade, along with the actual hourly rate and applicable fringe-benefit information.
Don’t Guess at the Classification
If a contractor is unsure which classification applies, NJDOL directs the contractor to contact the Division of Wage and Hour Compliance. Counter Point can process the payroll detail supplied for the project; it does not replace the official classification determination.
NJDOL Prevailing Wage FAQsFrom Payroll to Compliance and Beyond
The same project, classification and hour detail captured for prevailing-wage payroll can support certified payroll, NJ Wage Hub preparation, job costing and construction reporting.
Prevailing Wage Payroll
Capture useful employee, project, classification, hours, rate and fringe information at the source.
Certified Payroll
Use organized payroll data to support MW-562 and certified-payroll reporting.
NJ Wage Hub
Use the certified-payroll information in the applicable NJDOL submission workflow.
Construction Job Costing
Put the same detailed labor data to work by project, employee, trade, classification and cost code.
Enter it once. Use it everywhere.
Prevailing Wage Payroll Built Around Your Construction Business
Your Way In
Show us how you collect time and payroll information. We configure payroll entry around your jobs, fields, classifications and workflow.
Your Payroll
Detailed construction payroll can accommodate the project and labor information your business needs without turning payroll entry into a second job.
Your Way Out
Use the information for certified payroll, job costing, GL and custom reporting built around what you’re trying to see.
Don’t redesign your construction business around payroll software. Let us build the payroll process around your business.
See how we build construction payroll →
Related Construction Payroll Services
NJ Certified Payroll
Capture the information certified payroll needs while you’re already processing payroll.
Learn MoreNJ Wage Hub
Make Wage Hub preparation easier by starting with better-organized payroll data.
Construction Job Costing
Track labor by project, employee, trade, classification and cost code.
Construction Payroll Reporting
Get reporting built around the information your construction business needs to manage.
Prevailing Wage Payroll FAQs
What is prevailing wage in New Jersey?
For covered New Jersey public works, prevailing wage is the required wage level for the applicable craft or trade in the locality where the work is performed. NJDOL issues official project wage determinations that identify wage and fringe-benefit rates by classification.
Do prevailing-wage rates vary by project or location?
Yes. NJDOL states that prevailing-wage rates vary by locality and by the type of work performed. The official wage determination issued for the specific project is the source contractors should use, including any predetermined increases listed in that determination.
What if an employee performs more than one type of work?
The payroll records need to accurately preserve the work performed and the hours associated with the applicable craft or trade. NJDOL requires contractors and subcontractors on covered projects to pay prevailing-wage rates based on work classifications actually worked for all actual hours of work.
Can an employee work on public and private projects in the same payroll week?
Yes. From a payroll-processing standpoint, the important issue is keeping the project, hours, classification and applicable payroll treatment clearly organized so covered work is processed using the appropriate project requirements.
Are fringe benefits part of prevailing wage?
They can be. NJDOL’s official wage determinations include wage and fringe-benefit rates. NJDOL permits credit for the employer’s actual cost of certain eligible benefits and also identifies employer costs that cannot be credited toward the fringe requirement.
Can Counter Point determine which prevailing-wage classification applies?
The official classification and project requirements come from the applicable wage determination and NJDOL. If a contractor is unsure which classification applies, NJDOL directs the contractor to contact the Division of Wage and Hour Compliance. Counter Point’s role is to configure and process payroll using the project, classification, hours, rate and fringe information applicable to the work.
How does prevailing-wage payroll connect to certified payroll?
Certified payroll reports rely on detailed employee, classification, hours, rate and fringe information. Capturing that detail during payroll can reduce the need to reconstruct the same information after payroll is finished.
Can Counter Point customize payroll entry for prevailing-wage contractors?
Yes. Counter Point can configure payroll entry around the contractor’s workflow so useful job, employee, classification, hours, rate and other labor detail can be captured during payroll entry and used for payroll, certified payroll, job costing and reporting.