There is big money to be made with government contracts. Construction companies that win bids can see profits increase significantly when a job is on time, within the budget, and in compliance with the Davis-Bacon Act. If you have been awarded a project with a projected cost of more than two thousand dollars, the employees you hire must be paid wages that are in line with what other workers in the area are getting for similar jobs. Prevailing wage contractors must comply with this law or be subject to all kinds of penalties and sanctions.
According to the Davis-Bacon Act, any wages you pay laborers, while they are on the contract job site, have to be commensurate with pay they would receive from a private sector contractor for a comparable job. Fringe benefits must also be commensurate. The government contract will list rates for mechanics and laborers and as well as outline labor standards. Apprentice and trainees may be paid less than regular workers if they have registered with programs with the DOL.
As a contractor, or subcontractor, you have to pay laborers every week and submit a certified payroll record to the contracting agency. If you have been awarded a prime contract, one in excess of a hundred fifty thousand dollars, you must also pay laborers time and a half for any hours they work over the standard forty hours per work week. If these laws are not followed, complaints may be registered with the Wage and Hour Division of the Department of Labor.
An employee rights poster has to be posted on the site where laborers can read it easily. There must also be a posted list of the pay determinations. The contractor has to keep payroll records, and other basic records, for employees for the duration of the contract and for three years after the contract. There is specific information that must be included in these records.
Every record must include the employee's Social Security number, legal name, and address. There should be a job description for every laborer as well as pay rate and fringe benefit contributions. The number of hours worked daily and weekly have to be included.
Every deduction taken must be included in the records. Detailed information regarding the fringe benefit plans and programs must be included. If you hired trainees and apprentices, you must include their registration information in their records.
Every week the contractor must provide the contracting agent with a payroll report with all the pertinent information. The home address and Social Security number are not required, but a four digit identifying number is. The contractor, or an authorized representative, has to sign the report, which must be submitted within seven days of the pay period being reported.
Any deviation from this law is subject to significant penalties. The contract can be terminated immediately. Debarment for a period of three years may be initiated. Payments for work completed can be withheld from the contractor until delinquent wages and penalties are satisfied.
According to the Davis-Bacon Act, any wages you pay laborers, while they are on the contract job site, have to be commensurate with pay they would receive from a private sector contractor for a comparable job. Fringe benefits must also be commensurate. The government contract will list rates for mechanics and laborers and as well as outline labor standards. Apprentice and trainees may be paid less than regular workers if they have registered with programs with the DOL.
As a contractor, or subcontractor, you have to pay laborers every week and submit a certified payroll record to the contracting agency. If you have been awarded a prime contract, one in excess of a hundred fifty thousand dollars, you must also pay laborers time and a half for any hours they work over the standard forty hours per work week. If these laws are not followed, complaints may be registered with the Wage and Hour Division of the Department of Labor.
An employee rights poster has to be posted on the site where laborers can read it easily. There must also be a posted list of the pay determinations. The contractor has to keep payroll records, and other basic records, for employees for the duration of the contract and for three years after the contract. There is specific information that must be included in these records.
Every record must include the employee's Social Security number, legal name, and address. There should be a job description for every laborer as well as pay rate and fringe benefit contributions. The number of hours worked daily and weekly have to be included.
Every deduction taken must be included in the records. Detailed information regarding the fringe benefit plans and programs must be included. If you hired trainees and apprentices, you must include their registration information in their records.
Every week the contractor must provide the contracting agent with a payroll report with all the pertinent information. The home address and Social Security number are not required, but a four digit identifying number is. The contractor, or an authorized representative, has to sign the report, which must be submitted within seven days of the pay period being reported.
Any deviation from this law is subject to significant penalties. The contract can be terminated immediately. Debarment for a period of three years may be initiated. Payments for work completed can be withheld from the contractor until delinquent wages and penalties are satisfied.
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Prevailing wage contractors who work on projects can get the support they need directly from us. To read the relevant blog posts about what we do, visit http://www.beneco.com/solutions.
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