Posts from the Finance/Law Category
Compensation – More than just wages
Posted by Laura Larson on October 16th, 2009
“How much do you make?” You wouldn’t necessarily give the answer to just anyone, but if it were someone you were willing to share this information with, what would your answer be? For most of us we’d say, I make so much an hour or a year, or maybe you’d think back to your W-2 or tax return from last year. While this amount may be accurate for how much you are paid before taxes and other deductions, or the amount of your “take home” pay, for many this is only a portion of your actual compensation package.
Many employers compensate their employees with various benefits that aren’t reflected on a paystub or in your pocket. Some benefits that can add up quickly are health insurance premiums, dental insurance, disability insurance, life insurance, employer retirement contribution match, vacation time, sick time, etc. These are all items that cost the employer money for your benefit and add to your overall compensation package.
In addition to the items above, for which you receive a direct benefit as an employee, there are still additional costs your employer must incur to have you on their staff. Payroll taxes (FICA, federal and state unemployment taxes) and workers’ compensation insurance must be paid by your employer as well.
So, the next time someone asks you how much you make and you compare that amount to someone else’s answer, take a moment to consider the other pieces of your compensation package; you may be surprised by how much you actually make.
Purchase Orders, Lien Waivers & Insurance – Oh My!
Posted by Laura Larson on August 18th, 2009
Looking around the office at the piles of paper on your desk or in your filing cabinets, you may think to yourself, what’s with all of this paperwork? After all, you’re a construction contractor not a lawyer. Shouldn’t you be worried about getting a building or home built and deal with the paperwork overload later? No, probably not.
So, why are documents such as purchase orders, contracts, lien waivers and certificates of insurance so important? Ultimately, these are the documents that are going to protect you, your business and your client.
Purchase orders and contracts are legal documents that require each party to perform according to their terms. To protect each party, a purchase order or subcontract should be issued and signed for each material purchase or subcontracted service. Should an issue arise with pricing, performance or scheduling, these documents are your best defense in claiming your rights.
A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. They exist to secure payment for services, labor and material on both personal and real property. Lien waivers should be used to release the owner, general contractor or subcontractor from potential liens on projects once payment has been made for labor and/or materials.
Verifying proper insurance coverage for your subcontractors and independent contractors can also protect you, your business and your client. While insurance coverage requirements vary from contractor to contractor and project to project, it’s always a good idea to obtain a current certificate of insurance from your subcontractors, prior to them beginning work on the project, to ensure that they have proper general liability, workers’ compensation, auto and other insurance coverage.
Davis-Bacon Wages – What? How?
Posted by Laura Larson on August 3rd, 2009
With the recent infusion of federal stimulus funds into the economy, more and more construction projects have some form of federal government funding and require compliance with Davis-Bacon labor standards.
If you’re saying to yourself, “I don’t have any federally funded projects in the pipeline”, you may be surprised. If you are looking at construction jobs for housing projects, nursing homes, homeless shelters or even public schools, you may have to comply with the Davis-Bacon wage rates. Projects that contain funding or grants from the NH Community Development Block Grant, HUD, the NH Housing Finance Authority, or the American Recovery and Reinvestment Act (ARRA) may require compliance with the labor standards of the Davis-Bacon act.
So, what is the Davis-Bacon Act and how can I comply with the labor standards? In summary, the Davis-Bacon Act requires the payment of prevailing wage rates and fringe benefits to all laborers and mechanics on Federal government construction projects in excess of $2,000. This includes alteration and/or repair, including painting and decorating, of public buildings or public works. For a more detailed description of the Act, click on the following links:
http://en.wikipedia.org/wiki/Davis-Bacon
http://www.dol.gov/compliance/laws/comp-dbra.htm
The most common question that arises when bidding a job that requires compliance with Davis-Bacon labor standards is, “Where do I find the prevailing wage rates and fringe benefits for the county in which the project is located?” Obviously, you want to be sure to have the most current wage rates and fringe benefits when bidding a job since you and all of your subcontractors will be certifying that you paid your employees the required wages and fringe benefits. You can find more information and current wage determinations at the following link: http://www.gpo.gov/davisbacon/.