The Benefits of Paying Prevailing Wage Fringes to a Bona-fide Plan

Certified Payroll/Prevailing Wage, Construction News, Payroll Tips
The benefits of paying the Prevailing Wage Fringe Benefit portion to bona-fide plan is often misunderstood by employers and employees alike. Prevailing wage jobs, those jobs that are subject to the Davis-Bacon Act and/or State Prevailing Wage Laws, require that all laborers and mechanics {including tradesmen such as carpenters, equipment operators, painters, pipefitters, plumbers, etc.) who perform work on the jobsite are to be paid a set base rate of pay PLUS an hourly fringe benefit rate. Union contractors automatically pay the total hourly fringe benefit rate to the union hall on behalf of the employee, usually splitting the full hourly rate into specific "funds" - Health & Welfare, Pension, Vacation, etc. When this happens the Union contractor doesn't pay payroll taxes, worker's compensation, or general liability insurance on this…
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Prevailing Wage Fringes-Taking Credit for Company 401k Contributions

Certified Payroll/Prevailing Wage, Payroll Tips
Taking a credit against the full prevailing wage fringe benefit for company paid 401k contributions and reporting it correctly on the Federal WH-347 Certified Payroll Report can be very confusing.  This question was asked by a reader who recently requested our 4 Ways Contractors Pay Prevailing Wage Fringe Benefits eBook. We are a non-union shop working on prevailing wage jobs; our Company offers a 401k plan and the company contributes 4% of  our employee's gross wages to the 401k.  We understand that the 401k plan is considered a bona-fide plan, but how do we take an hourly credit when our contributions are based on a percentage of gross?  Currently we just look at an employee's gross wages for the month and make the calculations and contributions. ------------------------------------------------ Taking a credit…
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