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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Employee Retention via Core Values

Employee Retention via Core Values

I am sometimes shocked when I look at the differences across our construction company clients.  Not so much by the different types of work that they do, but more so in their approach to business and even more specifically in their approach to their team. We have...

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Table of Experts-Prevailing Wage

Table of Experts-Prevailing Wage

The Albany Business Review hosted three experts to discuss how prevailing wage impacts the construction industry, labor unions, wages and the economy. Table of Experts-Albany Business ReviewDownload

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How to Calculate Annualization

How to Calculate Annualization

As stated in the U.S. Department of Labor Prevailing Wage Resource book, “Annualization is a computational method used to determine the hourly rate of benefit plan contributions that are creditable towards a contractors’ prevailing wage fringe benefit obligation on covered projects.”

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Case Study – An Easy Win-Win for Employer and Employees

Case Study – An Easy Win-Win for Employer and Employees

In New York, the prevailing wage and fringe benefit rate must be paid on all public work hours. Contractors may satisfy the fringe benefit portion of the prevailing wage by either paying the prevailing benefit rate as additional cash wages, or by providing bona fide benefits that at least equal the rate.

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Prevailing Wage Expansion in New York

Prevailing Wage Expansion in New York

The New York State legislature is poised to pass a comprehensive revision of the prevailing wage law, extending prevailing wage requirements to a far wider scope of work than ever before. An interesting article covering this can be found in the Albany Times Union here.

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