Fringe Benefits Compliance Review

payroll papers

Keeping in compliance with these laws can often leave a government contractor overwhelmed and confused, especially when paying the required fringe benefit. Employers can choose to pay the fringe benefit as additional cash wages or provide a bona fide fringe benefit plan.
Some contractors choose to pay the fringe benefit as cash in lieu, believing it’s the simplest way to comply with the law. But choosing this option is a costly way to comply because it increases their payroll burden and makes them less profitable and less competitive in the bidding process.
Government contracts are subject to stringent regulations, including:

  • The Affordable Care Act
  • The Service Contract Act
  • The Davis Bacon Act
  • Living Wage Ordinances
  • State Prevailing Wage Laws
  • The Davis Bacon Related Act

Benefits of A Bona Fide Fringe Benefit Plan

Cash wages are subject to payroll taxes such as FICA, FUTA, SUTA, and Workers’ Compensation. But if the contractor moves that money into a pre‐tax bona fide benefits program, they’ll experience substantial savings. The advantages are two‐fold: the employer saves on unnecessary payroll costs, while the employees benefit from health care and retirement savings accounts.

report guide

Establish a reporting guide for each wage-determination /CBA.

hours and benefits

Compilation of employee hours and allowable (paid) benefits.


Detailed reconciliation.

summary report

Summary report and employee-level reporting.

employee statement

Employee statements (online or paper copies).

Best of all, GSA has the knowledge and expertise to do all the work for you. With GSA, contractors can:

  • Guarantee compliance
  • Reduce payroll and overhead costs
  • Provide a cost‐effective and comprehensive benefits package for all of their employees
  • Streamline their administrative process and budget
  • Benefit from fully tailored SCA Compliance training
  • Rely on a company with over two decades of experience in the government contracts arena
  • Use the GSA Benefit Trust plan structure when bidding on future projects

GSA’s SCA Fringe Compliance Review

Are your government contracts in compliance with the Service Contract Act (SCA)? Determining your SCA contracts’ health and welfare liability, both past and present, is essential to maintaining your long-term viability in the government contracting arena.


If you’re found to violate the SCA, you could face:

Contract Terminations

Withholding of Contract Payments

Financial Liabilities

Debarment from Future Contracts

GSA is happy to answer any questions or concerns you might have about SCA Compliance. GSA’s SCA compliance review process helps companies and contractors take a preemptive strike against any possible regulatory investigations.

GSA’s Review Tracks Bona-Fide Fringe Benefits, Cash-in-Lieu, Underpayments, and Overpayments

After a careful and comprehensive examination of records, GSA can provide determinations on:

  • Monies disbursed for bona-fide fringe benefits under the SCA, including cash-in-lieu.
  • Any direct-paid benefits, including sick pay, 401k match, and more.
  • Any liabilities for funds due to employees (i.e., underpayments)
  • The amount of any cost overruns (i.e., overpayments)
Business agreement