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).
FCE provides an array of services related to fringe accounting at no extra charge to your plan:
For more information, please contact FCE’s Corporate Office.