If you are a Public Works contractor and offer a bona fide prevailing wage plan, you are likely familiar with the concept of annualization. The U.S. Department of Labor prevailing wage resource book refers to annualization as: “The computational method that is used to calculate the hourly rate of benefit plan contributions that are creditable to a contractor’s prevailing wage fringe benefit obligation on covered projects.”
By paying prevailing wage fringe benefit dollars into a bona fide benefit plan, those dollars are not subjected to labor burden costs, such as FICA, unemployment taxes, workers compensation and general liability premiums.
We have been receiving several questions on how to comply with the amended prevailing wage bill that is now law. There are questions that still need to be clarified, however the purpose of the amendment is to have employers provide additional transparency of fringe supplements when workers are on public works jobs. Most of the questions we get relate to: “What do I have to provide to my employees?”
Annualization — If a contractor is doing public work and uses any of the fringe supplements to pay bona fide benefits to their employees, you need to know how to utilize these fringe supplements in a compliant way.
Construction executives are fabulous at what they do best—construction. However, they know their limitations and need a great team around them. Here are the top 10 things your company can do to retain the top-notch team you already have, be more competitive, and ultimately win more bids:
We are excited to announce our latest podcast by Tom Santa Barbara, president of DirectAdvisors, entitled “New York State Construction Concerns”. In this podcast, Tom interviews Brian Sampson, President of the Empire Chapter of the Associated Builders and Contractors (ABC). Brian discusses some of his thoughts on the latest developments in the industry and the state of New York, especially the many challenges being faced amid the COVID-19 pandemic.