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NYSDOL Annualization of Fringe Supplements: What are the rules?

If you’ve determined that New York State Department of Labor (NYSDOL) annualization regulations indeed apply to you, you may be asking yourself, “What do I do next?” On the surface it’s simple. “Annualization” refers to the time period over which employer contributions are divided by to calculate an hourly credit that applies toward the stated NYS prevailing wage (PW) fringe supplement rate. In effect, annualization means that NYS PW fringe supplements cannot be used to subsidize benefits on private work. In practice, you’ll want to know which benefits count toward the credit, how to treat Davis-Bacon fringe...

NYSDOL Annualization of Fringe Supplements: Does it apply to me?

Let’s take a look. According to the New York State Department of Labor (NYSDOL,) employers have three options when it comes to providing NYS prevailing wage (PW) fringe supplements: 1 - Pay the PW fringe supplements as cash in the paycheck, along with the required prevailing wage base rate. Fringe supplements paid to an employee as cash are not subject to the annualization calculation. The NYSDOL defines “cash” as money given to the employee in a paycheck (reportable on an IRS Form W2) subject to all employee taxes (i.e., federal and state income tax) and subject to “burden” (i...

Wage Theft Prevention Act

In April 2011, the NYSDOL put in place rigid requirements for notifying employees of pay changes, known as the Wage Theft Prevention Act (WTPA.) Then in 2015 after many employers voiced their concerns about the value and burden of these regulations, they loosened the notification requirements to essentially say that notification must be given upon hire and in the event of a pay decrease. Great news, right? Not so fast. There is the law of unintended consequences to deal with. While not the intention of the NYSDOL, we have seen these notices play an important supporting role in a few different places....

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