Insurance Premium Audit
Found another error in a Work Comp Premium Audit. A Chicago area employer was subject to the Davis-Bacon Act. Basically the Act requires paying prevailing wages on public works projects.
“All federal government construction contracts, and most contracts for federally assisted construction over $2,000, must include provisions for paying workers on-site no less than the locally prevailing wages and benefits paid on similar projects.”And although your Workers Compensation Premium is subject to to the higher wages - the higher benefits are not. This Illinois employer lumped the required compensation into the employees pay and during the workers compensation premium audit – those wages were included in the final payroll numbers. A simple over site but with $25,000 in fringe benefit costs – the additional premium was $2,200.