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Learn about Prevailing Wage Contractors
For contractors or the subcontractors, it is recommended that they have to pay their workers a certain amount of prevailing wage. The prevailing wage was set by an act of law and this was to protect the workers from exploitation. For this reason, you will realize that in a certain area where a project might be going on, then the contractors have to ensure that they pay the proposed amount. Since there are several states, you will realize that most of them have set their prevailing wage laws. With regard to the prevailing wage, it is paramount to learn that it was passed by the Davis Bacon Act. Besides, the laws were set a long time ago and this was in the year 1931. On this article, I will present things you ought to learn regarding the prevailing wage and hence you should read through to learn more. You will find this article of importance to understanding more about the prevailing wage.
It is paramount to learn that the prevailing wages can be done on hourly rates as well as the fringe benefits. Concerning the fringe benefits, it refers to the coverages in health insurance, holiday pay and even some of the training programs a person might enroll. For instance, the contractor can put some amount of money as a benefit plan for the worker. The law is very strict with the contractors and hence they have to ensure that the employees are paid accordingly. Failure to obey the law will lead to penalties or even the contractor will have to pay interest. You will realize that most of the contractors opt to pay the fringe benefits since they regard it to be simple. Besides, paying wages is one of the ways that a contractor will comply with state law and avoid penalties. Contractors usually save fringe benefits for their employees and you will realize that this amount is an exemption from the payroll tax. Hence, the contractor saves his employees a large sum of money every year.
For the construction projects that have been funded by the public, it is recommended that the contractor or the subcontractor has to ensure that he or she submits payroll records to the public body. The aim of submitting the documents is to ensure that the contractors and the subcontractors in charge of the project abide by the state laws regarding prevailing wages. It is advisable that the subcontractor has to ensure that every worker has been paid a proper prevailing wage and this is to avoid penalties.
There are times when a contractor and subcontractor might submit false certified payroll. At such times, the subcontractor and the contractor will be liable and there will be a formal forbid from the authority to ensure they will never participate in public projects. It is paramount to learn that the contractor needs to ensure that he or she posts the prevailing wage rates for the public project. Besides, the contractor might also consider writing to the employees to notify them of their prevailing wages.