CPAs and Advisors with Your Growth in Mind

How Many Contractors Does It Take to Run the Government?

By: John Ford , Senior Consultant, Government Contractor Services Group For many years, there has been a debate as to how many contractors are performing work for the government. This issue has two components: (1) the number of entities holding contracts; and (2) the number of individuals who are actually performing those contracts. While the former is fairly easy to determine, the latter is more problematic. This article will discuss two of the tools available to the government to make this determination. These tools also help the government to know how much these employees are costing the government. The first tool, required. Read More.

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Paid Sick Leave Now Required for Federal Contractors

By: Sara Crabtree , Senior Manager Effective November 29, 2016, the Department of Labor has issued regulations to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, signed by President Obama on September 7, 2015. The Executive Order requires certain parties that contract with the Federal government to provide their employees with up to seven days (56 hours) of paid sick leave annually. Executive Order 13706 was signed by the President with the intention of increasing efficiency and cost savings in the work performed by contractors for the Federal government. The theory is that providing access to paid sick leave. Read More.

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No Changes to the Department of Labor SCA Health & Welfare Rate

As far back as many can remember, there has been a yearly change in the Health & Welfare (“H&W”) rate. Last summer for instance, the H&W rate jumped $0.25 from $4.02 per hour to $4.27 per hour. However, as of July 28, 2016, the Department of Labor (“DOL”) Wage and Hour Division has made no changes to the Service Contract Act (“SCA”) (“H&W”) rate. The DOL has also issued a memorandum that retains the H&W rate at $4.27 for presumably next year. With the exception of citing the Bureau of Labor Statistics Employment Cost Index, the memorandum provides no other commentary as. Read More.

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Overtime on Government Contracts

By: John Ford , Senior Consultant, Government Contractor Services Group The use of overtime to perform government contracts can be a contentious topic, particularly in regard to uncompensated overtime. This article will address the following issues in regard to overtime on government contracts: The basic statutory requirements concerning overtime including what is an overtime premium; Overtime on cost reimbursement contracts; Overtime on time and materials (T&M) contracts; Overtime on contracts subject to the Service Contract Act (SCA); and Uncompensated overtime. The primary statute addressing overtime is the Fair Labor Standards Act (FLSA; “the Act”). The FLSA is administered by the Department of. Read More.

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Accounting for Overtime

Recently, our Firm presented a webinar on overtime . Because of time limitations, we were not able to address the proper accounting treatment of overtime costs. This blog will fill this gap. For purposes of this blog, overtime costs are those additional costs a contractor incurs to compensate an employee for working more than 40 hours in a workweek. The hours may be compensated at the employee’s normal hourly rate or at a premium rate of pay. We are not concerned with uncompensated overtime here. There seems to be some confusion and disagreement over the proper accounting treatment for overtime costs. For instance,. Read More.

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