When contractors choose to pay the fringe benefit requirement as additional cash wages they are increasing their cost for payroll tax, workers compensation premiums and possibly liability insurance premiums. These additional payroll related burdens have an enormous effect on bottom line profits.
The Austin, Texas based Fringe Benefit Group (also known as The Contractors Plan), a pension and welfare benefit plan administrator has been named in a class action suit for charging “sky-high” and “grossly excessive” direct and indirect fees for their administrative services.
We field many calls each week about Supplemental Unemployment Benefit (SUB) Plans. The following five are the most common.
Self-Insured Health Plans as “Bona Fide Fringe Benefit Plan” under Davis Bacon and State Prevailing Wage Laws
Self-insured, or self-funded health plans, are popular with employers that have a large, diverse workforce.
My last blog entry featured the success story of one of our heavy highway construction company clients. This time I want to focus on the success of one of our client’s employees.
This case study is based on a well-respected multi-generational merit shop company with a long standing dedicated workforce.
All fringe benefit plans fall into two categories, “funded” or “unfunded”. The best type is funded, obviously. Otherwise I wouldn’t be writing this post.
Virtually any type of job related training, including apprentice training and safety training are considered bona fide benefits and therefore can be used to help meet the fringe benefit obligation of the Davis-Bacon Act or state prevailing wage laws.
Donald Trump has made the rebuilding of our national infrastructure a day one priority. That could translate to unprecedented bidding opportunities for construction companies across the country.
Supplemental Unemployment Benefit Plans (SUB) can be extremely beneficial for you and your employees.
We would like to highlight some questions and answers we have received lately that we believe have broad relevance to our clients and prospects.
We continually talk with construction companies about the advantages of shifting prevailing wage fringe benefits out of payroll and into bona fide benefit programs like the DirectAdvisors Trust. Although this often makes tremendous financial sense for construction companies and their employees, the transition can be difficult when employees are accustomed to having that money paid as wages.
As we dive head first into summer, the construction season is well underway.
I spend a substantial amount of my time each week talking with prospective new construction company clients about fringe benefit plans.
Would your employees like to receive double unemployment benefits and fully paid uninterrupted medical insurance during the seasonal layoff?
As we enter into February most of us are growing tired of the long dark nights and the cold weather. Most of our clients, at least the ones that work outside, will remain shut-down for the next two months.
Many merit shop contractors throughout the United States fund supplemental unemployment benefit (SUB) plans to satisfy the fringe benefit obligation of the Davis-Bacon Act.
Federal and state governments often require employers to provide certain benefits to employees. President Obama signed his latest executive order on Labor Day, which extends the number of paid sick days mandated for federal contractors.
Apprentice training and safety training are considered bona fide fringe benefits and therefore can be paid for with prevailing wage fringe benefit contributions.
Last week we learned of a prevailing wage bona fide benefit plan administrator who has run into trouble with the U.S. Department of Labor.
During 2014 our clients contributed over $15 million in prevailing wage fringe benefit supplements to our bona fide health & welfare and retirement programs resulting in an estimated $3.75 million in savings.