The use of an apprentice on a Prevailing Wage job can be cost effective. A portion of each employee’s wage is set aside for training. The amount permitted is located under the fringe benefits section on the wage determination report.
Your Prevailing Wage Account:- saves you payroll taxes on the amount deposited. OVCEF establishes a training account for these funds and provides the contractor with a quarterly statement.
- Can be used for apprenticeship, craft training, and safety related training for your employees; the funds cannot be used for management training.
How it works:- OVCEF issues a check to the appropriate educational provider upon written request, provided that a two weeks’ notice is given.
- Fifty percent of all payments received by OVCEF are placed into the Company’s training account; the remaining fifty percent are used to defray operating and administrative expenses incurred by OVCEF.