Public Contractors’ Biggest Threat: Annualization! – How to Calculate Annualization and Make it Work for You!

Public Contractors’ Biggest Threat: Annualization! – How to Calculate Annualization and Make it Work for You!

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.”

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Public Contractors’ Biggest Threat: Annualization! – How to Calculate Annualization and Make it Work for You!

Maximizing Savings in a Prevailing Wage Trust Plan

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.

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4 FAQ’s on the New Prevailing Wage Amendment

4 FAQ’s on the New Prevailing Wage Amendment

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?” 

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Top 10 Things Construction Companies Can Do to Be More Competitive

Top 10 Things Construction Companies Can Do to Be More Competitive

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:

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DirectAdvisors Podcast #3 – New York State Construction Concerns: a Conversation with Brian Sampson, President of ABC Empire Chapter

DirectAdvisors Podcast #3 – New York State Construction Concerns: a Conversation with Brian Sampson, President of ABC Empire Chapter

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.

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How Supplemental Unemployment Drives Employee Retention

How Supplemental Unemployment Drives Employee Retention

Offering supplemental unemployment benefits (SUB) to your team is one of the best ways to drive employee retention. Providing a steady stream of income to your workers while they’re laid off, on top of the state unemployment benefits they might qualify for, gives them money when they need it most. This fosters a sense of company loyalty and keeps employees committed to you when work temporarily dries up.

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DirectAdvisors Podcast #1 – The Power of Supplemental Unemployment Benefit Plans During COVID-19

DirectAdvisors Podcast #1 – The Power of Supplemental Unemployment Benefit Plans During COVID-19

Supplemental Unemployment Plans can provide compensation to employees beyond state unemployment insurance during lay off periods. SUB plans can help ease the financial stress of layoffs, generate peace of mind and worker loyalty, and offer significant tax advantages compared to severance pay. To learn more, please listen to our podcast, where we discuss how a SUB plan can be beneficial in such a difficult time.

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Opportunities For Road and Bridge Contractors

Opportunities For Road and Bridge Contractors

In New York State, many roads and bridges remain structurally-deficient due to years of inadequate funding and climate change. New infrastructure repairs and replacements must accommodate the effects of climate change, spiking project costs by up to seventy-five...

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Essential Requirements of SUB Plan

Essential Requirements of SUB Plan

With some limited exceptions, all SUB plans seeking to meet the qualifications to be exempt from wages (and therefore exempt from FICA and FUTA taxes) must be substantially the same or identical to those described in Rev. Rul. 56-249, as modified by Rev. Rul. 90-72....

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Introduction & History of SUB Plans

Introduction & History of SUB Plans

Introduction Supplemental Unemployment Benefit (SUB) plans provide compensation to employees in addition to state unemployment insurance during periods of layoff. SUB plans, when designed correctly, offer employers a way to provide employees with enhanced income...

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How a Contractor Can Save $1,200,000

How a Contractor Can Save $1,200,000

A contractor can choose between providing the prevailing fringe benefit rate as additional cash wages or as bona fide benefits. The cost of paying the fringe rate as cash wages can be expensive since wages are subject to payroll taxes and payroll-based insurance premiums. In most circumstances, this includes FICA, unemployment taxes, workers compensation premiums, and liability insurance premiums. These costs are typically referred to as “labor burden” and can range between 15%–40% of payroll (depending on rates paid for workers compensation and liability insurance).

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How a Contractor Can Save $1,200,000

Funded vs. Unfunded Prevailing Wage Bona Fide Benefit Plans

All fringe benefit plans fall into two categories, “funded” (29 C.F.R. §§ 5.26-5.27) or “unfunded” (29 C.F.R. § 5.28). Funded plans are those where the contractor’s fringe benefit contributions are made irrevocably (funds cannot revert back to the contractor for any...

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What Qualifies as a Bona Fide Fringe Benefit

What Qualifies as a Bona Fide Fringe Benefit

What is a Bona Fide Fringe Benefit Merriam-Webster defines bona fide as: Made in good faith without fraud or deceit; Made with earnest intent: sincere  Neither specious or counterfeit: genuine.           The Davis Bacon Act (DBA) prevailing wage rate is made up of two...

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