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Davis Bacon Plans
A Davis Bacon Plan is a qualified employer
sponsored plan. This type of plan is named after the
Davis-Bacon Act which requires contractors to pay
workers the prevailing wage rate on certain
federally funded projects. The prevailing wage rate
is usually a combination of a base rate and a fringe
benefit. Fringe benefits can be paid as wages or
paid to a retirement plan on the participant’s
behalf. If the fringe benefit portion is paid as wages,
then it is subject to the normal payroll taxes.
However, if it is paid to a retirement plan, this
money will not be subject to FUTA, FICA, SUTA,
Medicare and Workers’ Compensation premiums
and the employer will spend less on payroll taxes.
For simplicity, the Davis-Bacon portion is usually
subject to immediate eligibility. Otherwise the
fringe benefit must be paid in cash until eligibility is
met. The Plan will also apply immediate vesting
since this benefit is in lieu of income.
A Davis Bacon plan can be a profit sharing plan, a
401(k) plan or a money purchase plan. Vesting
schedules and end of year requirements can be
applied to employer contributions.
sponsored plan. This type of plan is named after the
Davis-Bacon Act which requires contractors to pay
workers the prevailing wage rate on certain
federally funded projects. The prevailing wage rate
is usually a combination of a base rate and a fringe
benefit. Fringe benefits can be paid as wages or
paid to a retirement plan on the participant’s
behalf. If the fringe benefit portion is paid as wages,
then it is subject to the normal payroll taxes.
However, if it is paid to a retirement plan, this
money will not be subject to FUTA, FICA, SUTA,
Medicare and Workers’ Compensation premiums
and the employer will spend less on payroll taxes.
For simplicity, the Davis-Bacon portion is usually
subject to immediate eligibility. Otherwise the
fringe benefit must be paid in cash until eligibility is
met. The Plan will also apply immediate vesting
since this benefit is in lieu of income.
A Davis Bacon plan can be a profit sharing plan, a
401(k) plan or a money purchase plan. Vesting
schedules and end of year requirements can be
applied to employer contributions.
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| Benefit Plans Services Inc., offers retirement plans, 401k Plans, 403b Plans, Age-Weighted Plans, Davis bacon Plans, Money Purchase Plans, New Comparabillity Plans, Profit Sharing Plan, Safe Harbor 401k Plans, SEP Plans, Simple 401k Plans, Thrid Party 401k We are a third party retirement plan provider located in Huntington WV, throughout the Tri-State Valley, We are a full service benefits consulting firm providing a wide range of retirement services in ARIZONA, AZ, ARKANSAS, AR, CALIFORNIA, CA, COLORADO, CO, CONNECTICUT, CT, DELAWARE, DE, DISTRICT OF COLUMBIA, DC, FLORIDA, FL, GEORGIA, GA, HAWAII, HI, IDAHO, ID, ILLINOIS, IL, INDIANA, IN, IOWA, IA, KANSAS, KS, KENTUCKY, KY, LOUISIANA, LA, MAINE, ME, MARYLAND, MD, MASSACHUSETTS, MA, MICHIGAN, MI, MINNESOTA, MN, MISSISSIPPI, MS, MISSOURI, MO, MONTANA, MT, NEBRASKA, NE, NEVADA, NV, NEW HAMPSHIRE, NH, NEW JERSEY, NJ, NEW MEXICO, NM, NEW YORK, NY, NORTH CAROLINA, NC, NORTH DAKOTA, ND, OHIO, OH, OKLAHOMA, OK, OREGON, OR, PENNSYLVANIA, PA, PUERTO RICO, PR, RHODE ISLAND, RI, SOUTH CAROLINA, SC, SOUTH DAKOTA, SD, TENNESSEE, TN, TEXAS, TX, UTAH, UT, VERMONT, VT, VIRGIN ISLANDS, VI, VIRGINIA, VA, WASHINGTON, WA, WEST VIRGINIA, WV, WISCONSIN, WI and WYOMING, WY. We serve the communities of Ashland, Russell, Greenup Paintsville, Louisa, Prestonsburg, Pikevile, Chesapeake, Proctorville, Ironton, South Point, Portsmouth, Gallipolis, Jackson, Coal Grove, Rockhill, Huntington, Barboursville, Milton, Ona, Hamlin, West Hamlin, Branchland, Ranger, Winfield, Teays Valley, Lesage, Apple Grove, Logan, Williamson, Kermit, Cross Lanes, Winfield, Dunbar, St. Albans, Ravenswood, Parkersburg, Point Pleasant, Kenvoa, Ceredo, Wayne, Lavalette, Charleston, Cross Lanes, Beckley, Buffalo, Morgantown, Clarksburg and the Tri-State |