.As an employer working under a Davis-Bacon Act (DBA) contract, do compliance and benefits administration have you saying, “WTF?” That’s, “What the fringe?” The question of how to best utilize the fringe isn’t a simple one. There are plenty of options but what’s the right solution? Read on to learn about fringe benefits for DBA contractors.
The Basics of the DBA
The DBA helps protect local communities from competition and challenges caused by federal government contracts. The DBA requires that employees working on federal contracts valued in excess of $2,000 be paid a local prevailing wage and health and welfare fringe benefits. One of the compliance requirements of the DBA is to require that contractors maintain basic records of their workers and pay the mandated fringe allocation at least once a week in the form of either cash or health and welfare fringe benefits.
The Wage and Hour Division of the U.S. Department of Labor enforces the DBA, and contractors and subcontractors that fail to comply with the DBA can face significant penalties. That’s why providing compliant fringe benefits for DBA contractors and their employees can make a difference! Employees get the benefit of health and welfare benefits, and contractors can have confidence that they are on the right side of compliance!
Fringe Benefits for DBA Contractors
Fringe benefit requirements present a unique challenge to DBA contractors, in terms of compliance tasks that apply, but fringe benefits can also be a contractor’s saving grace. Contractors that pay the fringe in the form of bona fide health and welfare benefits have a financial advantage over competitors, since paying the fringe in benefits helps reduce the overall payroll tax burden.
Regulations on health and welfare fringe and the prevailing wage requirements specify that any benefits provided by DBA contractors must be tracked along with the employee’s wages. That takes man-hours when it comes to administration! Entrusting your needs to a third-party administrator takes the headache of compliance and the burden of administration off of your plate. With Boon, you get the advantages of offering health and welfare benefits without the hassle.
Beyond “What the Fringe”
If “What the Fringe” is the question, Boon provides the solution. Boon builds innovative health and welfare fringe benefits for DBA contractors. Our unique and expertly tailored benefit options help to manage the fringe dollars. That saves you on payroll taxes and helps to keep you in compliance with the DBA. It also keeps you competitive with your bids.
When it comes to something as important as employee benefits, getting the right fit counts. We offer consultative approach to build a benefit plan for you and your employees. Boon ensures a tailored solution to suit your contract needs.
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