Mark Schwartz
The Davis-Bacon Act (DBA) mandates that contractors and subcontractors working on federally funded construction projects pay their laborers and mechanics prevailing wages and benefits, as determined by the U.S. Department of Labor (DOL). Compliance with the DBA is essential to avoid legal repercussions and maintain eligibility for future government contracts. This guide provides a comprehensive overview of the key components of Davis-Bacon compliance, including worker classifications, wage determinations, fringe benefits, certified payroll reporting, and common compliance pitfalls.
Learning Objectives
By engaging with this guide, participants will:
Key Components of Davis-Bacon Compliance
1. Worker Classifications
Accurate classification of workers is critical. The DBA defines laborers and mechanics, including truck drivers, and mandates that each be paid according to their specific classification. Misclassification can lead to underpayment and legal violations.
2. Wage Determinations
Each federal construction project requires a wage determination that outlines the minimum wage rates and fringe benefits for each worker classification. Understanding how to read and apply these determinations is essential for compliance.
3. Apprentices and Trainees
Apprentices and trainees must be enrolled in bona fide programs and are subject to specific wage rates and ratios relative to journeymen. Proper documentation and adherence to program standards are necessary to maintain compliance.
4. Fringe Benefits
Fringe benefits can be provided as cash payments or contributions to bona fide benefit plans. Employers must ensure that the total compensation meets or exceeds the prevailing wage requirements.
5. Certified Payroll Reporting
Contractors are required to submit weekly certified payroll reports (CPRs) detailing employee wages and classifications. These reports must be accurate and submitted timely to avoid penalties.
6. Posting Requirements
Contractors must display the Davis-Bacon poster (WH-1321) and applicable wage determinations at the job site in a prominent and accessible location. Failure to do so can result in compliance violations.
Common Compliance Violations
Why Should You Attend
Navigating the complexities of Davis-Bacon compliance can be challenging. Non-compliance can result in severe penalties, including fines, contract termination, and debarment from future federal projects. This guide is designed to equip contractors, subcontractors, and associated professionals with the knowledge and tools necessary to ensure full compliance with DBA requirements. By understanding and implementing the principles outlined herein, attendees can safeguard their organizations against legal risks and enhance their competitiveness in securing government contracts.
Best Practices for Compliance
Who Should Attend?
Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that means to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.Mr.Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs and feels that educating clients toward faster, accurate and more complete payroll processes provide the most value.Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.
