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State Prevailing Wage Currently, 32 states have
prevailing wage laws, sometimes referred to as "Little Davis-Bacon Acts". These laws apply to construction contracts
awarded by state, city or other local agencies, and their intent is similar to the federal Davis-Bacon Act: to provide payment
of local prevailing wages and benefits to cover laborers or skilled.
The dollar threshold that triggers each state's prevailing wage law varies. Some states have no threshold and others are as
high as $500,000. You can find links to each state's Department of Labor and state wage determinations (if applicable) here.
The Problem 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.
The Solution 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: - FICA
- FUTA
- State unemployment taxes
- Workers compensation
premiums
- Public Liability
Premiums
With The Contractors Plan, 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: - Reduce payroll burden
- Narrow
the gap between wages paid on private work and government contracts
- Shave dollars off your bids, making them more profitable and increasing your odds of winning
- Increase profits
- Increase your ability as a company owner to contribute
to your own retirement accounts using our expert plan design
We're familiar with the laws and regulations that apply to each state, as well as with the federal
law.
Find out how much we can save you. | 
