Apprentice training and safety training are considered bona fide fringe benefits and therefore can be paid for with prevailing wage fringe benefit contributions.
The primary constraint with funding these types of benefits, are that the payments must be made to a third-party. The employer cannot reimburse itself for its training expenses.
To the surprise of some, there is no requirement that employees be enrolled in a state approved apprentice training program, or even be an apprentice. Job training and safety training can be provided for any worker and paid for with their prevailing wage fringe benefit contributions.
Eligible expenses include tuition to an apprentice program, tuition to a college or training center, books, lab or other related fees, as well as on-site instructors. Adopting employers of the DirectAdvisors Trust simply submit a requisition along with invoices for these expenses and the trust pays the institutions directly or reimburses the employees.
If you have additional questions please do not hesitate to contact us or download our whitepapers – “Harnessing the Power of Supplemental Unemployment Benefit Plans” and “Working the Fringe.”
Please also view our short animated video, to see how constructing a bona fide fringe benefit plan, can move prevailing wage dollars out of payroll and reduce associated costs. Increase profits. Submit more competitive bids. Build employee loyalty.
How we can help
DirectAdvisors, established in 2001 and located in Albany, New York provides bona fide benefit plan consulting and third party administrative services to merit shop (non-union) construction companies that are subject to the Davis-Bacon Act, Service Contract Act and state prevailing wage regulations. Our clients are located throughout the United States and range in size from 10 to 3000 employees.
In 2015, our construction company clients will contribute tens of millions of dollars of prevailing wage fringe benefit contributions to The DirectAdvisors Trust (health & welfare benefits) and retirement plans managed by our team.
Our solutions are free from any conflict of interest as we do not sell any financial or insurance products. We work with existing agents, brokers and insurance companies.