Prevailing Wage/Davis-Bacon and Related Acts Welfare Plan
A “Prevailing Wage/Davis-Bacon” welfare plan is a “bona fide” fringe benefit plan recognized by the U.S. Department of Labor and is qualified under Internal Revenue Code Section 501(c9). These plans are subject to ERISA and receive tax advantages as a qualified welfare plan. When paid as a benefit and not a wage, the employer reduces the payroll-associated expenses such as:
FICA
FUTA
SUTA
Medicare
Workers’ compensation premiums
Savings can be in excess of 30% of the fringe benefit amount! In addition, the plan establishes a clear audit trail if your company is asked to document its prevailing wage payments by the Department of Labor.
In our capacity as contract administrator, we provide welfare services including:
Performing escrow eligibility administration under a dollar or hour bank eligibility system including COBRA administration.
Providing assistance and guidance to employers contributing to the Trust in the form of letters of instruction.
Discussing with and advising participants of their eligibility for benefits under the Written Plan when requested by a participant, his beneficiary, or representative.
Providing reports to the employer monthly, and employees quarterly, of contributions made by the employer, and eligibility status of each employee.
Preparing and distributing Summary Plan Descriptions, benefit application forms, and other Plan communications to participants and beneficiaries. Maintaining file copies of same as required with the U.S. Department of Labor or any other government agency.
Annual Audit of Plan and completion of annual IRS filings.
Why adopt a qualified welfare plan for Prevailing Wage and Davis-Bacon fringe contributions?
Bid government contracts more competitively
Reduce expenses
Recruit and retain top-quality employees
Level wages between Prevailing Wage and Non-Prevailing Wage work.
Call or Fax: 866-624-4750 or Email for more information
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