Health and Welfare


Are you a contractor doing Davis Bacon and/or State Prevailing Wage work and considering health insurance for you and your employees?


Did you know that if you are a contractor where a majority of your work is prevailing wage and if you are paying all the fringe dollars on the workers paychecks that you are effectively paying the entire cost for medical insurance for your workers right now?  So, where is the coverage you ask? 

Or, are you a contractor doing some amount of Davis Bacon or State Prevailing Wage work who already provides health insurance for your employees, or would like to, through one of the major medical carriers?  If so, are you using the fringe dollars of the prevailing wage to help pay the employer share of the premium?  Not sure? 

We’ll show you the proper medical crediting methods of using the fringe dollars of prevailing wage to help pay the employers share of the medical insurance premium.  You will then avoid payroll taxes and workers compensation premiums on a portion of the employer share of the health insurance premiums depending on the amount of prevailing wage work you do.

In addition, if you are a contractor who primarily does Davis Bacon or State Prevailing Wage work, then you should consider a bona fide medical trust for your company health insurance.  A bona fide medical trust offers large group composite rates instead of small group age banded rates.  Depending on your employee population and census, you could see significant premium savings and/or benefit improvements using a trust.  There are many trusts to choose from across the nation so ask us for an independent comparison of these trusts.

Contact us for quotes from all the major carriers and learn the proper payroll crediting methods for health insurance premiums.   Take advantage of being a prevailing wage contractor for your medical coverage.  Call 760-208-2506 today!

Leave a Comment