Compliance for
SCA Government Contractors
Compliance is a big word meaning many different things to different people. Contractors must understand all items and what is most important to the DoL to ensure that they have all been addressed. It is important to understand how your hired administrator (TPA) has processed your fringe data, so if ever questioned you can prove that all service partners are working accurately in the best interest of your service contract employees. DoL fines are costly, time consuming and can diminish the confidence employees have with their employers.
Various compliance laws can often leave a government contractor confused especially when and if paying out the required fringe benefit. Employers can choose to pay the fringe benefit as additional cash wages or provide a bona fide fringe benefit plan(s).
When contractors choose to pay the fringe benefit as cash this is easy but most costly to their company. When choosing this option to comply it increases their payroll burden and makes contractors less profitable and less competitive in the bidding process.
