Taking a health insurance against the full prevailing wage compensation and correctly reporting the WH-347 Federal Salary Report can be very confusing, especially if you are an open shop, but sometimes you are dealing with a union agreement.
For example, if your company does a lot of predominant wages and private work. If you offer health insurance to all your employees, the company pays 75% of the monthly premium, and employees pay the remaining 25% through employee deductions.
Accepting a health insurance loan against the full benefit of wages is confusing, NOT ONLY you.
From what I know (and I realize I'm in Vermont and know enough about prevailing wage rules and rules to be dangerous – maybe I do not know the whole fine font for your particular country). I'll explain what I know, and then you need to check it out with the Local Labor Department's Prevailing Unit, just to be sure.
First, you'll need to determine the company's monthly contribution to each employee and the rest of this example; Let's suppose we have an employee named Frank and your company pays $ 173.33 per month for his health insurance.
Stage 1 – Take $ 173.33 -> multiply it by 12 = this is equal to the company's annual maximum contribution ($ 2,079.96).
Step 2 – Take the company's annual contribution ($ 2,079.96) and divide it up to 2080 hours -> it will give you "hourly credits" of $ 0.99 – remember, as far as the prevailing wages go, everything is based on an hourly rate.
In the QuickBooks, edit the employee's record of Frank -> go to the payroll and compensation section -> in the "Additions, deductions and contributions of companies" block, find the position for a health insurance contribution and enter the two-hour "rate" and the annual maximum.
So now let's say that Frank is classified as Flagger, which produces $ 11.15 an hour, and the full tax package is $ 4.40 per hour, and on the basis of the calculations above he has paid $ 1 health insurance contributions, 00 per hour. In QuickBooks, his payment level becomes $ 14.55 ($ 11.15 base PLUS $ 3.40 cash banknotes).
When you generate your federal WH-347 certified salary reports, you will want to pay special attention to Column 6 – Payout Rate / Cash Line. Here you will want to report $ 11.15 (base rate) / $ 3.40 (balance of cash payment in cash).
In the Declaration of Conformity you will want to check both boxes 4a – Fringe Benefits paid to approved plans, funds or programs And 4b – Fringe Benefits are paid in cash.
- 2,080 hours is a standard number of hours of construction industry per year. It is based on 40 hours a week in a 52-week period.
- You will want to edit both the payout components of the company and employees and indicate that everyone has an annual limit so QuickBooks can automatically withhold the deduction when the annual limits are reached.
- On a weekly basis, both company contribution and employee retention must be calculated on the basis of the total number of hours the employee has worked on the two private and predominant salaries.
- When the company's annual limit is reached, you'll want to "add" the credit to the worker's hourly rate for the remainder of the year.
- You will need to make these calculations each time your health insurance premiums are changed.