The experts at DirectAdvisors can help you design and coordinate a custom bona fide benefit plan solution that is right for your company, and that integrates with your existing benefit plans, insurance carriers, and brokers. Your plan can be designed in a way that relieves much of the burden and expense of government mandates.
DirectAdvisors was pleased to welcome two guests to our latest installment of our video podcast series. Mike Kiley (Consultant and Relationship Manager) and Karl Willman (Principal/Director of Midwest Small Defined Benefit Operations) of Nyhart joined Stacy Gregory, plan advisor from DirectAdvisors, in a discussion on Cash Balance Plans. Utilizing prevailing wage dollars in a Cash Balance Pension Plan offers various benefits for both employers and their employees. From tax benefits to employee retention, our panelists discussed how this type of plan works, and the advantages of implementing it alongside a defined contribution plan.
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.”
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:
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.
Prevailing Wage: New Reporting & Record Keeping Obligations – New York State has increased compliance for contractors by amending a bill making contractors and subcontractor responsible and accountable to provide additional disclosures to workers on public works jobs.
New York State has increased compliance for contractors by amending a bill making contractors and subcontractors responsible and accountable to provide additional disclosures to workers on public works jobs.
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.
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.
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.
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...
Most employers elect to provide Supplemental Unemployment Benefits plans through a trust fund rather than directly through the company. A trust fund that meets the necessary qualification requirements is tax-exempt and, therefore, the contributions made by the...
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....
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...
I have previously written on a contractor's potential tax savings when utilizing a bona fide benefit plan to satisfy the requirements of the prevailing wage law. However, there are other ancillary advantages that can provide a competitive advantage for contractors....
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).
Annualization is one of the most commonly misunderstood concepts in the Davis Bacon Act (DBA), Service Contract Act (SCA) and state laws. However, knowledge about how annualization works, and how it affects contractors’ financial obligations for bona fide benefit...