A large, multi-national services contractor engaged Baker Tilly to identify Service Contract Act and Davis Bacon Act non-compliances under multiple contracts. Baker Tilly deployed a team of experienced professionals to review payroll and fringe benefit data for covered employees, in addition to identifying other areas of concern.
During the in-depth assessment we identified problems with labor classifications, conformances and accompanying fringe benefit calculations. We worked with the contractor to correct the identified issues by implementing payroll system changes, adding certain policies and procedures to address control gaps, and restructuring their employee benefit payments.
Following the engagement, the contractor benefitted from increased compliance and savings through the restructuring of employee payments. The contractor was so pleased with the results that their internal counsel asked Baker Tilly to prepare and submit the contractor’s voluntary disclosure to the Department of Labor in addition to preparing remuneration statements to employees.
For more information on this topic, or to learn how Baker Tilly government contractor specialists can help, contact our team.