Annualization simply refers to the time frame (annual) over which contributions to benefit plans are divided to calculate an hourly credit toward the amount an employer is required to pay according to the prevailing wage schedule.  Total annual contributions per employee are divided by the total annual hours worked by that employee, on both public and private jobs. 

The NYS Department of Labor will generally look to the time frame used by the employer, i.e. fiscal year, calendar year, plan year, etc.  If the employer has not utilized a specific time frame to calculate their credit, in most instances the Department will use a calendar year.  An employer needs to be consistent in using the same twelve-month period year to year. 

• The hourly amount can be provided in cash in the employee's weekly paycheck when working on a public work project; or
• A contribution can be made to a bona fide benefit plan on behalf of the employee.  If this option is chosen and the contributions are not made on an hourly basis for all hours worked, both public and private, then the hourly cash credit the employer receives for supplement contributions must be determined (i.e. annualization).  Once that credit is determined, if there is any deficiency between the required supplement amount and the hourly credit amount, it must be made up weekly along with employee's wages. 
• If, pursuant to a collective bargaining agreement, contributions are made for all hours worked (public and private) and are at least the amount shown in the wage schedule, the requirements of the law have been met.

In order to calculate the hourly cash credit, the NYS Department of Labor regulation on supplements provides the formula for making that determination.

a.   Determine the actual annual contribution made for supplements for each employee.
b.   Determine the total annual hours worked by each employee on both public and private work.
c.   Divide the actual contribution or cost in (a) by the total number of hours worked in (b).

Once that credit is determined, if there is a deficiency between the required supplement amount and the hourly credit amount, it must be made up weekly with the employee's wages.
Where such proof of total hours worked by each employee is not provided by the employer, the Commissioner of Labor will:

1.   divide the amount in (a) above by 2080 hours (8 hours per day x 5 days per week x 52 weeks); or
2.   divide the amount in (a) above) by 1820 hours (7 hours per day x 5 days per week x 52 weeks) where proof is provided establishing that the employee worked only 7 hours per day.

Yes. The New York State Department of Labor (NYS DOL) does not regulate waiting periods, vesting schedules, etc.  That responsibility lies with the United States Department of Labor's Employee Benefit Security Administration.

The NYS DOL will verify that:

a.   The plan is a bona fide plan; and
b.   The employee is a plan participant; and
c.   The monies claimed to have been contributed on behalf of each employee have in fact been contributed.

It is the employer's choice as to the type and level of particular benefit they provide as long as they calculate any contributions to bona fide benefit plans according to the NYS DOL regulation. 

Yes. A true cafeteria plan, where the total dollar value of the supplement amount is provided to the employee and the employee is provided the option or vehicle to purchase their own benefits, is considered the same as cash. 

Yes.  The following are some items which do not qualify as a supplemental benefit for the purposes of complying with the labor law:

• Travel expenses such as meals and lodging
• Use of company vehicle or gas, toll and vehicle reimbursements 
• Meal allowances 
• Reimbursement for tools or company provided equipment 
• Uniforms or uniform cleaning

Contributing fringe supplements to the trust is simple.  Along with your check or wire transfer you will need to upload data or a report that shows:

• Employee Name
• Social Security Number 
• Amount of Fringe Supplements 
• Hours Worked

Requesting a benefit payment from the trust can easily be done online or by completing a simple authorization form. 

Generally it is not. The employer has the ability to make the plan voluntary but normally finds it is advantageous to have everyone participate.
There is a voluntary component in that employees usually have the option to decline the benefits being offered within the plan (medical insurance, vacation benefits, etc.) which provides more dollars for retirement benefits.

Their fringe supplements will fund their retirement benefits. 

In most cases the remaining fringe supplements in their benefit account will be contributed to their retirement plan unless they elect to use the supplements to pay for medical benefits during a lay-off. 

Balances remaining in participant benefit accounts are contributed to the employees retirement plan account.  Partial balances can also be carried over to the next plan year to pay for benefits during seasonal slow downs.  

Yes. With the employees authorization, the balance available in the employees benefit account may be used for insurance premiums. 

You may pay vacation benefits through the trust provided that your company maintains a defined non-discriminatory vacation policy.  The check is paid directly from the trust and is exempt from unemployment taxes and workers compensation taxes.  However, the employer portion of the FICA must continue to be paid by the employer. 

If offered, supplemental unemployment benefits are available for employees with an involuntary separation from employment (whether or not the separation is temporary) resulting directly from a seasonal lay off, reduction in force, the discontinuance of a plant or operation, or other similar conditions.

Benefits receive the same tax treatment as state unemployment and are not subject to FICA.

Employees have access to their account information online or by calling our toll-free customer service number.  Employees will also receive a statement each quarter, which will document all account activity. 

All activity is contained within our trust database and is available online in real-time.  Contributions to the trust as well as benefit payments from the trust can be initiated directly from the website.  

You will also receive a monthly statement, which will document all account activity. Our staff is also available to answer your questions at your convenience. 

Employers that elect to establish a retirement plan with us will have a full range of attractive features including participant online account access, daily valuation of account balances, and the ability to make changes to investment allocations at any time. 

Employee communications is one of our greatest strengths and it is one of the most critical steps in the successful implementation of a plan.

We conduct group meetings with your workers and provide easy to use reference materials. We always have time to answer everyone's questions.  We will also demonstrate how to obtain account information online.
Best of all, we come to you!

We often have meetings at job sites and will schedule them at times that are convenient for you and your workers.

Our fees are by far the most competitive in the industry and they are straight forward.
We charge the employer a one-time document fee that is never more than a $1950.

We charge a flat percentage of the fringe supplements deposited to the trust. This is between 3% and 5% depending on your size, volume, and plan design. The fee is payable from the participant's trust balance and is not charged to the employer.  The interest generated from trust assets is credited to the participant's account each month to help off-set the administrative fees.

Unlike our competitors, we never charge for individual transactions, IRS 5500 preparation, or additional plan design & consulting.