Prevailing Wage Projects: Trick or Treat?

October 27, 2020

|In Uncategorized, Builder Series, CPA Corner, Davis-Bacon Works

Bidding on and performing prevailing wage projects does not need to be scary! Partnering with a prevailing wage expert, like Beneco, can help you navigate some of the uncertainty that contractors often feel when working on these projects.

Below we have answered 8 of the most common questions we hear from our clients:

What projects fall under prevailing wage guidelines? All federally funded construction projects over $2,000 are subject to the Davis-Bacon Act.
Do individual state laws also apply? Yes, many states have their own prevailing wage laws, which are modeled after the federal Davis-Bacon Act. However, they may include key differences compared to federal projects. Please contact us to learn more about your specific state.
Where do I find my local prevailing wage rates? The DOL has all wage determinations available on their website.
Which employees need to be paid prevailing wages? All laborers and mechanics on qualifying projects whose duties are manual or physical in nature qualify for prevailing wage rates.
What are the approved methods of paying fringe dollars to my employees? The fringe portion of the prevailing wage can be comprised of ANY combination of cash wages and creditable “bona fide” fringe benefits, including retirement, health & welfare, vacation & holiday, and/or a qualified apprentice plan.
How often do I need to process payroll? On federally funded projects, payroll must be paid on a weekly basis.
Do I have to submit certified payroll? Yes, certified payroll must be submitted for all prevailing wage projects.
How do I calculate overtime? Fringe benefits must be paid for all hours worked, including overtime hours. However, fringe dollars paid to a bona fide benefits plan do not need to be paid at time and a half.

If any of these topics are keeping you up at night, let us know and we will set up a free call to review prevailing wage project strategies with you specific to your company.

Click here to set up a free Prevailing Wage Strategy Review!