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Fringe-Eligible Hours Tracking

FCE is the industry leader in tracking fringe-eligible hours according to a variety of methods and purposes.

DOL Wage Determinations require this method more often than any other. Individual Cost Accounting is also known in the industry as “small fringe accounting” and “paid-hour accounting.” As the name of this method implies, fringe allocations are “earmarked” on an individual basis. Your dedicated FCE eligibility specialist ensures that reported fringe hours do not exceed 40 per week (or 2080 per year) per employee. All fringe-paid hours qualify, regardless of whether the employee actively worked these hours.

Average Cost Accounting

This method of hours accounting is less common in DOL Wage Determinations and is typically reserved for “grandfathered” contracts. Average Cost Accounting is also known in the industry as “large fringe accounting” and “productive-hour accounting.” As the name of this method implies, fringe allocations are not “earmarked” on an individual basis, but are held in trust for the group as a whole. Your dedicated FCE eligibility specialist ensures that reported fringe hours are limited to hours for which the employee was actively at work. No weekly (or annual) cap on reported fringe hours applies.

Hour Bank Accounting

Under this method, the plan trustee establishes an “hour bank” inside the trust for each employee. Your dedicated FCE eligibility specialist works with the trustee to record and process fringe-dollar “deposits” into the individual hour banks. Each employee enjoys a unique benefit level determined by his or her hour-bank balance.

Authorized Leave Accounting

FCE offers an Authorized Leave Benefit that allows you to pre-fund employee absences for personal reasons, such as illnesses, medical appointments, family emergencies, etc.. You, the employer-plan sponsor, will decide what qualifies as an eligible absence under the Authorized Leave Benefit. For example, if you wish to restrict the eligible absences to documented employee illnesses, then FCE will design (and name) the benefit accordingly. As with Hour Bank Accounting, each employee enjoys a unique benefit level determined by his or her balance of leave hours. You may choose among a variety of accrual methods according to your needs and objectives.

Multiple Plan Accounting

Please note that FCE (in cooperation with the independent plan trustee) can apply the above accounting methods even where allocations must be divided among multiple plans inside the trust(s).

Associated Services

FCE provides an array of services related to fringe accounting at no extra charge to your plan:

• Customized Reporting – FCE will tailor a reporting package that will enable you to see “at a glance” meaningful trends (and potential issues) surrounding eligibility and funding. Our reports are audit-tested and DOL-friendly. 
• Compliance Review – FCE internally audits every submission of hours and funding against the requirements of your Wage Determination (or collective bargaining agreement, if applicable). We identify and address potential compliance issues at the earliest possible stage.  
• Audit Management – As your compliance manager, FCE functions as your representative in the event of a federal audit. We assemble all requested materials, provide all necessary clarification, and serve as the government’s point of contact. We are proud to say that no FCE client has ever “failed” a DOL audit.
• Streamlined Administration – FCE serves as the sole collection point for your submission of hours reports and associated funding. This single submission is generally the extent of your administrative involvement for the reporting period. We handle all allocations, payments, and accounting “behind the scenes.” Our mission is to reduce your administrative burden wherever and however possible.

For more information, please contact FCE’s Corporate Office.