Case Study

Powering Accurate Union and Certified Payroll for a NYC General Contractor

Industry: Construction (Union)

Location: New York City

Workforce: 100+ employees

Payroll Platform: ADP

The Challenge: Payroll for a Multi-Union Construction Operation

In the NYC construction market, labor is governed by union agreements and jurisdictional rules. This general contractor employs more than 100 workers across 10+ unions, drawing from a regular pool of union labor while applying different union rules based on project location and trade.

Each union has its own:

  • Benefit structures
  • Employer contributions
  • Employee deductions
  • Overtime and premium rules

Additionally, the company performs certified payroll work, which requires strict adherence to prevailing wage laws and detailed reporting. Static payroll configurations and manual reconciliation made it nearly impossible to maintain accuracy, and the finance team struggled with:

  • Applying the correct union benefits and deductions
  • Adjusting pay rates by job, location, and union
  • Calculating union-specific overtime correctly
  • Ensuring prevailing wage compliance
  • Reconciling union dues and benefit payments in accounting

The payroll and accounting teams needed a solution that could automatically apply the correct rules and produce compliant outputs—without manual intervention.

The Solution: Dapt + ADP for Union Construction Payroll

After evaluating Dapt’s platform, the customer selected the Job Costing solution. The customer worked with ADP and was guided by Dapt to configure a payroll and accounting workflow tailored to their requirements.

Deep Discovery and Configuration

Dapt worked with the customer to gather and document:

  • Union agreements and benefit requirements
  • Earnings and deduction structures for each union
  • Job- and location-based pay rate rules
  • Overtime and premium pay rules
  • Certified payroll and prevailing wage requirements

Dapt guided the customer through the detailed configuration process, helping define the required earnings and deduction codes, calculate union premiums, and submit those premiums as earnings—simplifying the ADP setup and streamlining the overall implementation process.

How Payroll Works with Dapt + ADP

Time is captured in the contractor’s time tracking system. After pulling time data and applying union rules, Dapt prepares and submits payroll-ready data into ADP, which the customer uses to process payroll.

Union Identification and Rule Application

  • Dapt identifies the correct union based on job, location, and assignment
  • Dapt applies union-specific requirements, including:
    • Employer expenses
    • Employee earnings
    • Employee deductions

Dynamic Pay Rate Adjustments

Dapt adjusts pay rates automatically based on:

  • Job requirements
  • Location
  • Union agreements

Union-Specific Overtime Calculation

Dapt calculates and applies overtime using union-specific rules, not generic payroll thresholds.

Certified Payroll and Prevailing Wage Compliance

  • Dapt verifies employees are paid at or above the prevailing wage
  • When required, Dapt applies an adjusted rate so the customer processes payroll at the compliant rate
  • This ensures certified payroll data is accurate before reports are generated

Beyond Payroll: Reporting and Accounting Automation

Once payroll is complete, Dapt continues processing payroll data to support downstream operations.

Union Reporting

  • Produces union-specific reports required for filings and audits
  • Breaks out hours, earnings, deductions, and benefits by union

Certified Payroll Reporting

  • Generates compliant certified payroll reports
  • Eliminates rework and last-minute corrections

Accounting and Reconciliation

  • Creates precise payable accounting entries for union dues and benefits
  • Makes union payments easy to calculate, track, and reconcile
  • Ensures payroll data flows cleanly into accounting systems without manual journal entry sprawl

This is especially critical given the complexity of union benefit structures, where reconciliation is traditionally one of the most time-consuming and error-prone tasks.

The ADP Partnership Advantage

The customer worked with ADP and relied on Dapt’s expertise to:

  • Configure complex earnings and deduction structures
  • Align payroll inputs with certified payroll, union reporting, and accounting requirements
  • Establish a scalable approach for supporting high-complexity construction payroll

The Result

With Dapt in place, the contractor now has:

  • Accurate payroll across 10+ unions
  • Automated union benefits, deductions, and overtime calculations
  • Confidence in prevailing wage and certified payroll compliance
  • Union-ready reports that eliminate manual compilation and rework
  • Accounting entries that clearly separate wages, benefits, and union liabilities
  • A payroll process that requires significantly less hands-on effort from payroll and accounting teams

What once required constant manual checks, spreadsheets, and cleanup now runs as a controlled, auditable process—freeing staff time every pay period while reducing compliance risk.

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