Background Image
Previous Page  18 / 40 Next Page
Information
Show Menu
Previous Page 18 / 40 Next Page
Page Background

PCCA Journal|4

th

Quarter 2010

18

Sample Calculation

Assume XYZ Broadband Company has 15 employees

doing prevailing wage work. These employees work

approximately 1,000 hours each per year. The fringe

amount above the base rate is $8/hour, and the aver-

age approximate additional payroll cost when paying

fringe dollars as cash wages is 25 percent.

15 employees X 1,000 hours = 15,000 total hours

15,000 hours X $8.00 = $120,000 in additional payroll

$120,000 X 25 percent = $30,000 XYZ Broadband

Company savings

Visit the interactive calculator at www.thecontrac-

torsplan.com

to calculate your company’s potential

savings.

Ready for an Audit?

The Obama administration has hired hundreds of new

investigators to make sure that ARRA funds are being

accounted for properly. It is very important for contrac-

tors to prepare themselves for an audit and understand

the following:

Certified payroll responsibilities,

Hourly fringe benefit allocation(s), and

Correct labor classifications for workers.

Contractors intending to bid on ARRA-funded

projects should take steps now to ensure compliance

with the Davis-Bacon Act and other federal and state

regulations that apply. Look for a prevailing wage ben-

efits partner with experience in this highly-regulated

industry—the U.S. DOL and IRS have significantly

upped their workforce and, as a result, their oversight

of contractors receiving ARRA dollars. Using a firm

that understands compliance from the Wage & Hour

Division of the DOL, the various state prevailing wage

laws, and the many requirements for employee benefits

can give contractors the competitive edge to win bids,

especially in a crowded market with so much opportu-

nity.

John Allen, CRPS, is a regional vice president for Fringe

Benefit Group, an industry leader in prevailing wage

benefit plans for government contractors. Since 1979,

Fringe Benefit Group has helped contractors be more

competitive when bidding on government jobs by offer-

ing flexible benefit solutions that can significantly re-

duce a company’s payroll burden. Allen can be reached

at (512) 663-0709 or

jallen@fibi.com.

ARRA and the Davis-Bacon Act

Continued from page 17