Struggling to manage payroll for your government contracts? Our webinar covers the specialized payroll needs of government contractors. We'll review the basic payroll process and proper labor distribution to cost objectives. Discover what to look for (and avoid!) in a payroll provider when it comes to DCAA-compliant timekeeping, complex pay structures, and SCA understanding. We'll discuss workarounds for GL integration and why Intuit's automated solution falls short. Plus, we'll provide ways to leverage payroll systems for HR components like benefits, hiring, and training. Attendees will leave with insider knowledge to build an efficient, compliant payroll process that satisfies auditors' requirements.

1. We Know Government
Contract Accounting
Copyright © 2014-2023 Left Brain Professionals Inc.

2. Unlocking
Payroll Efficiency:
Navigating Government
Contracts with Confidence
Copyright © 2014-2023 Left Brain Professionals Inc.

3. Left Brain Professionals is a
boutique accounting firm that
serves government contractors.
We specialize in accounting
systems and strategic services.
Who We Are
Copyright © 2014-2023 Left Brain Professionals Inc.

4. Our Practice Areas
Operational Support
• Monthly Accounting
Packages
• Indirect Rate Calculations
• Incurred Cost Proposals
Advisory Services
• CFO & Controller Services
• Audit Prep & Remediation
• SF 1408 Gap Analysis
Software & Tools
• Accounting Systems
• Process Templates
Training
• We provide no-cost and low-cost training
opportunities, both in person and online.
Copyright © 2014-2023 Left Brain Professionals Inc.

5. Robert E. Jones
Principal GovCon
Accounting Advisor
CPA, CPCM, NCMA Fellow
Steven Bressler
GovCon
Accounting Associate
Steve@LeftBrainPro.com
Robert@LeftBrainPro.com Suzanne@LeftBrainPro.com
Suzanne Camden
Sr. GovCon
Accounting Advisor
CPCM, NCMA Fellow
Our Team
Copyright © 2014-2023 Left Brain Professionals Inc.

6. Learning Objectives
Copyright © 2014-2023 Left Brain Professionals Inc.
• Describe labor distribution.
• Explain the basic payroll journal entry.
• Identify services provided by payroll companies.
• List common issues with payroll.

7. Poll
Copyright © 2014-2022 Left Brain Professionals Inc.
Who processes your payroll?
A. We process it in-house.
B. We use one of the payroll companies (e.g. ADP, Paychex, Paylocity).
C. Our external accountant/tax CPA does it.
D. I don't know.

8. Payroll Processing
Payroll is easy when using a provider.
Very few people process their payroll.
Accounting firms who say they are
processing your payroll almost always
use one of the major providers.
Copyright © 2014-2023 Left Brain Professionals Inc.

9. Payroll Basics
• The employer is responsible for registering payroll tax accounts in states and
then providing that info to the payroll company.
Timekeeping Basics
• Employees are responsible for entering their own time.
• Supervisors and/or project managers review and approve time.
• Accounting or payroll imports time for labor distribution & payroll.
Copyright © 2014-2023 Left Brain Professionals Inc.

10. Labor Distribution Basics
• Converting hours into dollars
• Distribution dollars across the GL and jobs
• Labor distribution debits the expense accounts and credits salaries payable
• See our timekeeping & labor distribution videos: Timekeeping, Labor
Distribution & Payroll
Copyright © 2014-2023 Left Brain Professionals Inc.

11. Poll
Copyright © 2014-2022 Left Brain Professionals Inc.
What is labor distribution?
A. Sharing the work among employees.
B. Converting hours into dollars.
C. Allocating fringe benefits.
D. Recording the payroll journal entry.

12. Copyright © 2014-2023 Left Brain Professionals Inc.
Processing Payroll
The employer is responsible for
registering payroll tax accounts in
states and then providing that info
to the payroll company.

13. Payroll Journal Entry
• Debit salaries payable
• Credit cash
• Debit employer taxes
• Other entries for retirement, employee contributions to health
insurance, & garnishments
• Direct deposit and taxes on separate cash transactions
• Can be combined into a single JE
• No need to record tax liabilities on BS since they are paid with each
payroll
Copyright © 2014-2023 Left Brain Professionals Inc.

14. Payroll Journal Entry
Account Debit Credit Description
Cash $ 94,000 Direct deposit
Cash $ 25,000 Tax deposit
Salaries Payable $115,000
Employer Taxes $ 10,000
Employee Health Contribution $ 3,000
Employee Retirement Contribution $ 2,500
Employee Garnishments $ 500
$125,000 $125,000
Copyright © 2014-2023 Left Brain Professionals Inc.

15. Payroll Providers – Our Partners
Most payroll providers know nothing about government contractors including the specific
timekeeping requirements, labor distribution, and uncompensated overtime
Do not use their timekeeping, expense reporting, or labor distribution reports
Copyright © 2014-2023 Left Brain Professionals Inc.

16. Payroll Providers – Not Recommended
Avoid Intuit payroll integrated with QB
QBO does not support labor distribution
QBD labor distribution requires a specific configuration
Using QuickBooks to Distribute Labor Costs (icatsystems.com)
Automated JE that end user cannot correct or adjust
Communicating with Intuit support is time-consuming and difficult
Copyright © 2014-2023 Left Brain Professionals Inc.

17. Poll
Copyright © 2014-2022 Left Brain Professionals Inc.
All payroll providers know how to properly calculation
labor distribution and uncompensated overtime.
A. Yes
B. No

18. Copyright © 2014-2023 Left Brain Professionals Inc.
Payroll Services
• Benefits & benefits administration
• New hire tracking
• Onboarding
• Training & LMS
• ACA compliance
• HR consulting
• Employee handbooks
• Labor law posters
• Timekeeping & GL integration*
• Expense reimbursement**
• *Proceed with caution. This should not be a
hard requirement unless you have several
hundred or thousands of employees.
• **We advise against expense
reimbursement through payroll. We find too
many errors in JE to record expenses and
reimbursements.

19. Common Issues
• Making adjustments to payroll without flowing them through timekeeping, labor
distribution, and GL
• Trying to track PTO in timekeeping and payroll
• Expensing PTO when used instead of when earned
• Recording net pay instead of gross labor
Best Practices
• Reconcile payroll reports to labor distribution with each payroll
• Reconcile quarterly payroll reports to labor distribution and tax forms
Copyright © 2014-2023 Left Brain Professionals Inc.

20. Poll
Copyright © 2014-2022 Left Brain Professionals Inc.
How much help do you need with payroll?
A. None, we've got this.
B. We like our provider but need help with reports and journal entries.
C. We want a new provider.

21. Copyright © 2014-2023 Left Brain Professionals Inc.
Government Contract
Accounting Made Easy
The Uncomplicated Guide to Compliance, Pricing, and
Profitability.
This indispensable book cuts through the confusion to
give readers clear, actionable steps to achieving
compliance, accurate pricing, and maximizing profit.
Readers will walk away with demystified processes
to:
• structure costs,
• win bids,
• and avoid profit-draining mistakes.
Consider Left Brain Professionals your guide to finally
making sense of this highly specialized world.
Available Now on AMAZON

22. Discussion / Q&A
Copyright © 2014-2023 Left Brain Professionals Inc.

23. Contact Us
Website: LeftbrainPro.com
Email: Support@LeftBrainPro.com
Phone: (614) 556 - 4415
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Copyright © 2014-2023 Left Brain Professionals Inc.