Fringe Benefits & How to Chart Them

Transcription

1 Fringe Benefits & How to Chart Them What is a bona fide (synonyms: AUTHENTIC, CERTIFIED) benefit plan? To qualify as a bona fide benefit plan under the Davis-Bacon and Service Contract Acts, contributions made on an employee's behalf must be irrevocable, made to a trustee or 3rd party pursuant to a fund, plan or program; and the provision of benefits must be communicated to employees in writing. Fringe benefits must be provided to all employees who are eligible under the Acts. The following are considered fringe benefits for purposes of the Davis-Bacon and Service Contract Acts: Retirement plans list under pension Medical insurance Dental Insurance Vision Insurance Life Insurance Sick Pay list under addl fringe & make note in addl fringe description Vacation list under vacation & holiday Holidays list under vacation & holiday The following are also considered fringe benefits for purposes of the Davis-Bacon wage survey Apprentice Training list under apprentice training Apprentice -- A person employed and registered in a bona fide apprenticeship program. (If these Apprentices/Trainees are in a formal program approved by the U.S. Dept. of Labor, Bureau of Apprenticeship and Training (BAT), or a state apprenticeship agency recognized by BAT, then information regarding wages and fringe benefits need not be provided.) Trainee A person registered in a construction occupation program Additional Fringe doesn t fall under the categories listed above; specify the fringe type in the "Description of Any Additional Fringe" field at the bottom of the form. Example: SASME (_ Association of Sheet Metal Workers) is a bona fide fringe negotiated w/union. List value under addl fringe and note SASME in description field at bottom of WD10. WD-10 instructions for completing Section 7: Fringe Benefits are paid in addition to the hourly rate. Report only the costs or contributions incurred by your company, NOT the employees. Do not include costs paid by the employer that are required by either Federal, State, or local law such as worker's compensation or unemployment insurance. Fill out the information under each fringe benefit that applies. Health & Welfare -- Medical or hospital care, or insurance to provide such care, life insurance, long- or short-term disability, sickness, or accident insurance (e.g. AD&D accidental death & dismemberment). Pension (401K, etc.) -- Retirement/401K, defined contribution plans (including savings and thrift, deferred profit sharing and money purchase pension), ESOP (employee stock option plan), annuity cost, or cost of insurance to provide such a benefit. Apprentice Training -- Defrayment of the cost of apprenticeship or similar training programs. Vacation & Holiday -- The payment of compensation for holidays and vacation. Additional Fringe -- If you are not sure of the category of the fringe benefit(s), enter the rate information in the column, and specify the fringe type in the "Description of Any Additional Fringe" field at the bottom of the form. Fringe benefits can be paid by a straight dollar amount, or by a percentage of the basic hourly rate. Indicate the cost or contribution your company paid to this classification during the peak week of this project.

2 CIRPC notes regarding Section 7: Union submissions pay rate reported is base hrly rate. Union fringe is in addition to paycheck unless noted. Any union fringe received in cash (taxed) is NOT a bona fide fringe. An explanation of benefits is often described on Contractor Wage Compliance Statement(s) included w/payroll. Compliance sheets may be marked as follows: a) WHERE FRINGE BENEFITS ARE PAID TO APPROVED PLANS, FUNDS, OR PROGRAMS - If no details are given and the payroll reports only one value for pay rate, this usually indicates the value is the basic hrly rate, NOT including fringe. - Note crafts that are an exception for fringe (listed under exceptions on compliance sheet). - If fringe is not described for a Davis-Bacon project, appropriate basic hrly wage + fringe rates can be found in published wage decisions at - Wage decisions are assigned based on project LET DATE (the date the winning bidder was awarded the project/costs finalized) and COUNTY. - For example, a Boulder CO hwy project let June 30, 2009 will abide by CO Modification 9 (CO Mod 9) wage rates published 06/05/ Project let dates can usually be found in the projects section of state Department of Transportation websites, usually under archived bids or the search engine within the site. Let dates can also be referred to as open date.

3 - If a project is located in MORE THAN 1 COUNTY within a state, CALL THE CONTRACTOR TO ASK IF ALL EMPLOYEES REPORTED WORKED IN ALL COUNTIES. If so, use the wage decision for the county reporting the highest rate for the classifications being reviewed. - If a project is located in MORE THAN 1 COUNTY within a state, AND THE CONTRACTOR ADVISED DIFFERENT EMPLOYEES WORKED IN DIFFERENT COUNTIES, request CIRPC guidance for how to proceed. - If you cannot locate a project let date, choose the most recent wage decision for that county that was published prior to the project start date. - If the wage decision reported on a forwarded DOL project summary sheet was published significantly prior to the project start date or let date, use the summary sheet decision (per Ed & VP). The project may have been delayed, etc. - If a craft is not listed in the assigned wage decision, chart values reported on payroll. - Refer to Charting Federal Wage Data section (below) to determine the correct fringe charting procedure - ask for assistance if unsure. - A phone call may be required if plans, funds, programs are not described. b) WHERE FRINGE BENEFITS ARE PAID IN CASH - If no details are given and the payroll reports only one value for pay rate, this usually indicates the value is the total of basic hrly rate + fringe. - If construction is a Davis-Bacon project, an appropriate breakdown of basic hrly wage + fringe rates can be found in published wage decisions at - See wage decision description under a) for charting instructions. c) No marked compliance sheet boxes but fringes explained in detail - Chart on a case-by-case basis. d) No marked compliance sheet boxes or explanations - Chart on a case-by-case basis. Converting overtime rates to regular pay rates when fringe benefits are included in the reported total pay rate, may require using the following equation: - Overtime rate GWD fringe = OT base rate / 1.5 = Regular base rate Record appropriate analyst comments on WD-10 hard copy & in ASDS WD-10 editor. - See Suggested Certified Payroll Notes section (below).

4 CHARTING FEDERAL WAGE DATA: Updated FAXED MEMO from Pamela Lee to Nancy Mason 10/01/1993 GWD General Wage Decision; CP Certified Payroll Example 1: Total CP rate = Total GWD rate CP fringe not broken down CP $10.00 hrly 0 $10.00 total CHART $9.00 base hrly $1.00 fringe $10.00 total Example 2: Total CP rate = Total GWD rate CP hrly rate < GWD hrly rate CP fringe > GWD fringe CP $8.25 base hrly $1.75 fringe $10.00 total CHART $8.25 base hrly $1.75 fringe $10.00 total Example 3: Total CP rate = Total GWD rate CP hrly rate > GWD hrly rate CP fringe < GWD fringe GWD $10.00 base hrly $0.25 fringe $10.25 total CP $10.10 base hrly $0.15 fringe $10.25 total CHART $10.10 base hrly $0.15 fringe $10.25 total Example 4: Total CP rate > Total GWD rate CP fringe not broken down CP $11.00 hrly 0 $11.00 total CHART $10.00 base hrly $1.00 fringe $11.00 total Example 5: Total CP rate > Total GWD rate CP hrly rate > GWD hrly rate CP fringe reported separate/paid to cash < GWD fringe CP $10.20 base hrly $0.80 fringe (addl) $11.00 total CHART $10.20 base hrly $0.80 fringe (addl) $11.00 total Example 6: Total CP rate > Total GWD rate CP hrly rate > GWD hrly rate CP fringe paid to plan < GWD fringe CP $10.30 base hrly $0.70 total fringe $11.00 total 0.23 pension 0.47 vac CHART $10.30 base hrly $0.70 total fringe $11.00 total 0.23 pension 0.47 vac Example 7: Total CP rate > Total GWD rate CP hrly rate < GWD hrly rate CP fringe > GWD fringe CP $8.50 base hrly $2.50 fringe $11.00 total CHART $8.50 base hrly $2.50 fringe $11.00 total Example 8: Total CP rate > Total GWD rate CP hrly rate > GWD hrly rate CP fringe paid to plan (union) GWD $15.57 base hrly $1.71 fringe $17.22 total CP $20.06 base hrly $1.65 total fringe $23.71 total 1.10 H/W 0.35 VAC (taxable, included in gross wages) not bona fide fringe 0.55 addl (union training) CHART $20.06 base hrly $1.65 total fringe $23.71 total 1.10 H/W 0.55 addl (union training)

5 Example 9: Total CP rate < Total GWD rate CP fringe not broken down CP $8.50 hrly 0 $8.50 total CHART $9.00 base hrly $1.00 fringe $10.00 total Example 10: Total CP rate < Total GWD rate CP hrly rate < GWD hrly rate CP fringe > GWD fringe GWD-Bricklayers $8.50 base hrly $0.40 fringe $8.90 total CP $8.30 base hrly $0.50 fringe $8.80 total CHART $8.50 base hrly $0.40 fringe $8.90 total Example 11: Total CP rate < Total GWD rate CP hrly rate > GWD hrly rate CP fringe < GWD fringe GWD $12.39 base hrly $3.20 fringe $15.59 total CP $12.45 base hrly $1.83 total fringe $14.38 total $0.92 H/W $0.58 Vac/Hol $0.43 addl fringe CHART $12.39 base hrly $3.20 total fringe $15.59 total $0.92 H/W $0.58 Vac/Hol $1.70 addl fringe SUGGESTED CERTIFIED PAYROLL NOTES: by Margaret Crawford Modify note for appropriate wage decision number and to fit each payroll and compliance sheet concerning fringe benefits. Analyst comments for WD-10 hard copy & main analyst comments section in ASDS WD-10 editor: (MLC) WAGE DECISION CO MOD 7. WAGES MATCH OR EXCEED WAGE DECISION. FRINGE BENEFITS ARE PAID IN CASH & TO APPROVED PLANS AND ARE IN ADDITION TO HOURLY RATE (MLC) WAGE DECISION CO MOD 8. WAGES EXCEED WAGE DECISION. FRINGE BENEFITS ARE PAID TO APPROVED PLANS AND ARE IN ADDITION TO HOURLY RATE (MLC) WAGE DECISION CO MOD 6. USED WD CO FOR BOBCAT RATE. FRINGE BENEFITS PAID IN CASH (MLC) WAGE DECISION WD CO MOD 7 FOR JACKSON COUNTY & CO MOD 7 FOR LARIMER COUNTY. WAGES MATCH WAGE DECISIONS. FRINGE BENEFITS PAID IN CASH (MLC) WAGE DECISION CO MOD 6. WAGES EXCEED OR DO NOT MATCH WAGE DECISION. SEVERAL EMPLOYEE RATES HAD TO BE ADJUSTED TO MEET WD. FRINGE BENEFITS ARE PAID TO APPROVED PLANS AND ARE IN ADDITION TO HOURLY RATE. Analyst Comments for Wage Classification individual wage lines in ASDS WD-10 editor: HOURLY RATE & FRINGE BENEFIT EXCEED WD CO MOD 6. HEALTH INS FB (3.50) LISTED ON COMPLIANCE SHEET. HOURLY RATE (10.00) & FRINGE BENEFIT (.65) DO NOT MATCH WD CO MOD 4. CIRPC ENTERED HOURLY RATE & FB OF GROUNDMAN CLASS C TRAFFIC SIGNALIZATION LISTED ON WD. HOURLY RATE (10.00) DOES NOT MATCH WD CO MOD 4. CIRPC ENTERED HOURLY RATE & FB OF GROUNDMAN CLASS C TRAFFIC SIGNALIZATION LISTED ON WD. TOTAL PKG EXCEEDS WD CO MOD 5. SUBTRACTED LISTED FB 2.87 FROM BASE TO GET HOURLY RATE HOURLY RATE & FRINGE BENEFIT MATCH WD CO MOD 5. HOURLY RATE & FRINGE BENEFIT EXCEED WD CO MOD 6. FRINGE BENEFIT LISTED ON COMPLIANCE SHEET.