Fringe Benefits on Government jobs

[klindsey54]

What is the name of your state? Virginia

My husband is an electrician with a company. He has been told that if he works a government job his employer automatically deducts $50 from each paycheck for "fringe" because he is getting paid more than he normally does. His employer takes this money out after taxes. Does this sound like anything you have heard of? Is this legal?

 

[Beth3]

My guess is that his pay rate increases because government entities are often required to pay in the upper tier of "prevailing wages." I work in the private sector so this is not my area of expertise but my gut-check tells me something is not right with the $50 deductions the employer is taking. I don't know if your husband is working for the federal gov't or the State gov't on these jobs but I strongly suggest your husband call the appropriate Department of Labor (whether federal or State) and inquire about this.

 

[mlane58]

If your husband is working for a federal contract, 1. His wages are determined under the Services Contract Act or the Davis-Bacon Act (if it is Construction) If it is the SCA, then his wages are determined by his locality and he is paid a fringe rate on top of his hourly rate for benefits and right now that rate is at $3.16 per hour. But without further infromation on whether it is federal or state, it is difficult to provide you with a solid answer.

 

[pattytx]

If your husband is working for a federal contract, 1. His wages are determined under the Services Contract Act or the Davis-Bacon Act (if it is Construction) If it is the SCA, then his wages are determined by his locality and he is paid a fringe rate on top of his hourly rate for benefits and right now that rate is at $3.16 per hour. But without further infromation on whether it is federal or state, it is difficult to provide you with a solid answer.

That was one thing I thought of too, is that the "fringe rate" is often added in as an addition to gross, then deducted back out as a deduction.

 

[ArmyRetCW3]

If the worker works for a federal contractor in addition of his hourly rate he also gets some fringe benefits - extra money for medical-retirement benefits, if the contractor does not provide the benefits. The employee gets to keep the extra money, which can not be included in the gross pay, it must be a separate line. If the employer provides the benefits, then the employer can deduct the extra money from the employee.

This is only applicable if the contract is for a federal agency only under the Service Contract Act.

 

[mlane58]

If the worker works for a federal contractor in addition of his hourly rate he also gets some fringe benefits - extra money for medical-retirement benefits, if the contractor does not provide the benefits. The employee gets to keep the extra money, which can not be included in the gross pay, it must be a separate line. If the employer provides the benefits, then the employer can deduct the extra money from the employee.

This is only applicable if the contract is for a federal agency only under the Service Contract Act.

Wrong, as it applies to anyone under the Davis Bacon Act as well.