You’re doing Prevailing wage work. You just pay your mandated fringe supplements in cash. You’re in compliance. So why use a trust?

It’s simple: to help your company and your employees.

For employers, every fringe supplement dollar in your paycheck costs you payroll burden. Workers comp, FICA tax, liability insurance can be costly adding from 15% to 50% cost to every fringe supplement dollar provided on your payroll. Think about what that does to your labor rate on bids. Do you already provide benefits to your employees like vacation, holidays, insurance? Why double pay when fringe supplements are approved by the USDOL for a variety of bona fide benefits.

One employee, 1500 hours/year, $20/hr fringe supplement, that’s $30,000 of fringe supplements per year. Savings: between $4,500 and $15,000 per year per employee. It’s worth it. It’s probably the reason you lost a couple of large bids.

For employees, security. A few quick examples: without a third party administrator and a trustee you can’t provide great benefits like supplemental unemployment during layoffs and insurance reserves, avoiding COBRA during seasonal layoffs. Not to mention, supplemental unemployment is not subject to FICA taxes, what other savings account is paying 7.65% these days?

Located in Rochester, NY, for over 25 years GMR has specialized in the development, placement, administration, and support of successful prevailing wage benefit plans meeting the compliance needs of the merit shop construction community. This year our clients will contribute tens of millions of prevailing wage fringe supplements to the Employee Benefit Trust and retirement plans, saving payroll burden on each of those dollars and making bids more competitive. Our current clients do prevailing wage work regulated by the NYSDOL, the USDOL, the MTA, and approximately 10 other states. Let us help you.