🧰 Managing Worker Classifications & Pay Rates
Setting worker classifications and pay rates for each workforce member is essential for complying with certified payroll requirements. In Kaster, you can assign one or more classifications to each worker, define their base rate of pay per classification, manage their hourly fringe benefit rates, and ensure you remain compliant with the prevailing wage determinations for your project.
📌 Why It Matters
Each worker must be classified correctly according to the work they perform. Their base rate of pay, OT rate of pay, and hourly fringe benefit rate must meet or exceed the prevailing wage rates tied to those classifications. Misclassification or underpayment can result in compliance violations, restitution, and project payment delays.
🛠 Managing Worker Classifications & Pay Rates
- Navigate to your project's Directory, select your company, and click on the Workforce tab.
- Select a worker from your Workforce list.
- Go to the Classifications tab.
- Click + Add New Classification to add a new classification or click the pencil Edit icon on an existing classification.
- ⚠️ If a classification is not listed for your reporting purposes you may contact the prime contractor and request that a new one be added.
- Enter or modify the Base Rate of Pay and the OT Rate of Pay.
- ⚠️ If you provide cash fringes just include that in the base rate of pay and OT rate of pay. See below FAQs section for more details on how to properly incorporate cash fringes in these rates.
- If the worker is an apprentice, toggle the Apprentice option from the Worker Type dropdown and enter their level (e.g., Level 1, 2) and percentage of base pay and fringe pay, if applicable.
- ⚠️ Refer to the wage determination documentation to identify the required percentage of pay applicable to apprentices under a specific classification.
- Note: Go to the Apprentice article for more details on how manage and report an Apprentice's 'Base Wage %' and 'Fringe Rate %'.
- (Optional) Fringe Rate Overrides (Skip Unless Needed)
- In most cases, you should skip this step. Fringe benefit rates are automatically inherited from the Benefits tab and do not need to be changed. Only use the Fringe Rate Overrides section if this worker has different fringe rates for this specific classification (for example, a worker who is both a Carpenter and an Electrician on the same project with different hourly fringe rates).
- ⚠️ If you proceed with this step, only check a box ✅ if you intentionally want to override the inherited fringe rate for that benefit. Checking a box enables an override and replaces the default fringe rate for this classification.
- Click the Save icon to update.
📘 Tips & Best Practices
Only add classifications the worker actively performs work under. If the worker’s rate changes due to pay raises or increases due to newly published wage determinations, update it here to avoid submission errors. Kaster uses the classification + rate combo during payroll validation to flag non-compliance.
✅ FAQs
Q: Can a worker have more than one classification?
Yes. If a worker performs multiple roles during a payroll week, each classification can be added with its respective rate by using the '+ Add Classification' button in the worker's Classification tab. During certified payroll submission, hours can be split accordingly.
Q: What if I pay fringes as cash instead of providing benefits?
Kaster does not use a separate cash fringe field. If you pay fringes in cash, simply include the hourly cash fringe amount in the worker’s Hourly Base Rate of Pay and Hourly OT Rate of Pay under their classification, as described below.
You can skip the Benefits tab entirely when fringes are paid in cash. Kaster automatically allocates the cash portion above the base wage to the cash fringe section of the certified payroll form and validates compliance based on the rates entered and hours reported.
📌 Tip: Use the OT Rate of Pay field to reflect how overtime is applied on your project (base-only OT vs. OT on total cash rate), per the example in the FAQ below.
Q: How do I enter cash fringe payments for straight time and overtime?
Kaster does not use a separate “cash fringe” field. If you pay fringes in cash, include the cash fringe amount in the worker’s hourly rate under their classification.
What to enter:
Hourly Base Rate of Pay (Straight Time)
Enter the hourly base cash wage rate plus the hourly cash fringe rate.
OT Rate of Pay
Use this field to reflect how overtime is calculated on your project:
- If overtime applies only to the base wage, apply the OT multiplier to the base rate, then add the straight-time cash fringe.
- If overtime applies to the entire cash rate (base + fringe), enter the full 1.5× cash rate here.
Example (OT applies to base wage only):
Hourly base cash wage: $25.00/hr
Hourly cash fringe: $5.00/hr
Straight Time (Hourly Base Rate of Pay):
$25.00 + $5.00 = $30.00/hr
Overtime Hourly Rate of Pay:
($25.00 × 1.5) + $5.00 = $42.50/hr
In Kaster enter:
Hourly Base Rate of Pay: $30.00/hr
Hourly OT Rate of Pay: $42.50/hr
Kaster will calculate totals and validate compliance based on the rates you enter and the hours reported.
⚠️ If you’re unsure what classifications or rates apply, refer to your project’s wage determination documentation or ask your prime contractor.