|Service Contract Act|
Contractors and subcontractors performing services on prime contracts over $2,500 are required to pay service employees wages and fringe benefits which are no less than locally “prevailing wages” as determined by the US Department of Labor. If the previous contractor had a collective bargaining agreement with its employees, the subsequent contractor must pay wages and fringe benefits at the rate in the agreement, including prospective increases. The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract.
Win More Service Contract Act Projects
Many contractors pay the fringe benefit portion of the prevailing wage as additional cash wages, believing it’s the easiest way to comply with the law. But choosing this alternative costs you money you don’t have to pay.
Allocating this amount to a bona fide benefit plan or plans results in significant cost savings. When the fringe portion of the prevailing wage is used to provide benefits for hourly workers, this amount is not subject to payroll costs such as:
With The Contractors Plan from Fringe Benefit Group, you can provide valuable benefits such as retirement, medical, dental, vision and life insurance plans for your employees – and, at the same time reap these benefits for your company:
Use our calculator to see how much we can save you.