Who is exempt from Service Contract Act?
The Services Contract Act guarantees a minimum wage and overtime for those working on government contracts worth more than $2,500. There are exemptions to the SCA, as laid out in 29 CFR § 541.300. These exemptions include “executive, administrative, professional, outside sales, and computer employees.”
Do contractors get fringe benefits?
You can also offer fringe benefits to independent contractors. Unlike your employees, you do not include independent contractors on your payroll or take out taxes. However, you still pay them for the work they do in regular wages and even fringe benefits.
What contracts are covered by the Service Contract Act?
Employment contracts providing for direct services to a federal agency by an individual or individuals; Contracts for operating postal contract stations for the U.S. Postal Service; Services performed outside the U.S. (except in territories administered by the U.S., as defined in the Act); and.
Can the contractor pay the employees their fringe benefits in cash instead of furnishing the required fringe benefits?
Assuming a $3.81 fringe rate, an employee working 40 hours a week is entitled to an additional $152.40 a week, which is over $600 per month. Can an employer/contractor pay employees their fringe benefits in cash instead of furnishing the required ”fringe benefits”? Generally, yes.
What is included in SCA fringe benefits?
“HEALTH & WELFARE: Life, accident, and health insurance plans, sick leave, pension plans, civic and personal leave, severance pay, and savings and thrift plans. Required to be paid by a successor contractor under section 4(c) of the SCA.
What are SCA requirements?
The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor’s …
What are SCA fringe benefits?
“HEALTH & WELFARE: Life, accident, and health insurance plans, sick leave, pension plans, civic and personal leave, severance pay, and savings and thrift plans. Minimum employer contributions must cost an average of $4.41 per hour computed on the basis of all hours worked by service employees employed on the contract.”
What is Service Contract Act wage determination?
“Wage determination” means a determination of minimum wages or fringe benefits made under 41 U.S.C. 6703 or 6707(c) applicable to the employment in a given locality of one or more classes of service employees.