GovCon Wednesdays – Estimated Read Time: 6 minutes Paid Time Off (PTO) policies are often treated as an HR formality—something documented once and revisited only when issues arise. But in practice, PTO policies directly impact payroll accuracy, financial reporting, and, for government contractors, compliance and audit readiness. If your PTO policy is unclear or inconsistently applied, it can create “fringe” rate distortions that are much harder to defend during an… Read More
DCAA Compliance
When to Upgrade Systems: Timing the Move Without Creating Compliance Risk
GovCon Wednesdays Estimated Read Time: 5 minutes For many government contractors, the decision to upgrade accounting systems is driven by frustration slow closes, audit pain, billing delays, or growing reliance on spreadsheets. By the time the decision feels obvious, risk has already increased. Upgrading too early can waste resources. Upgrading too late can jeopardize awards, compliance, and cash flow. This article explains when a system upgrade makes sense, what triggers the need, and… Read More
401(k) on Supplemental Wages: What GovCons Must Get Right for Compliance
GovCon Wednesdays – Estimated Read Time: 6 minutes When companies process bonuses, PTO payouts, or severance, most of the focus goes to payroll taxes and withholding. But one of the most common—and costly—oversights happens on the benefits side. 401(k) treatment on supplemental wages is not automatic. It depends on your plan document, your payroll setup, and how consistently you apply both. For government contractors, mistakes here don’t just impact employees—they… Read More
Supplemental Wages for GovCons: How They Should Be Handled
Estimated Read Time: 6 minutes When employees receive pay outside their normal base wages, many companies treat it like just another payroll item. That is where problems start. For government contractors, supplemental wages are not only a payroll tax issue. They also affect labor reporting, indirect rate consistency, compensation allowability, and the overall reliability of your accounting system. If the treatment is inconsistent, what looks like a simple bonus or… Read More
Labor Distribution Controls: The Backbone of DCAA-Compliant Accounting
GovCon Wednesdays Estimated Read Time: 5 minutes Labor is typically the largest cost element on government contracts and the most scrutinized during audits. Even contractors with strong accounting systems can fail reviews if labor distribution controls are weak, undocumented, or inconsistently applied. In GovCon, labor distribution isn’t just about tracking hours. It’s about proving that labor costs are accurate, allocable, approved, and traceable from time entry all the way to billing. This article… Read More
QBO vs ERP for GovCons: Choosing the Right System for Compliance and Growth
GovCon Wednesdays Estimated Read Time: 5 minutes One of the most common questions government contractors ask is deceptively simple: “Is QuickBooks Online enough, or do we need an ERP?” The answer isn’t one-size-fits-all and choosing the wrong system at the wrong time can create compliance risk, billing issues, and expensive rework later. This article breaks down QBO vs ERP for GovCons in a practical, compliance-focused way so you can make the… Read More