Axim Fringe Solutions Group
What We Provide:
- Compliance Reporting– Every fringe dollar by employee by hour worked by benefit elected. Guaranteed compliance with 24/7 employer / employee fringe access and full DOL audit support.
- Bidding Advantages– As a Service Disabled Veteran Owned Small Business (SDVOSB) Axim can fulfill set aside credit requirements while reducing overhead and G&A.
- Maximized Benefits- Our Contractor’s Choice plan offers better benefits that protect workers and their families. Employees can customize a benefits package to suit their individual needs.
- Consultation– Since we are gov. contractors ourselves, we know that no two contracts or contractors are the same, and we build our platform to fit our client’s varying needs.
Axim Fringe Solutions Industry Insights
Three Common Service Contract Act Compliance (SCA) Stumbling Blocks
Being a government contractor has always been complicated. As of recently, it seems that the government is almost determined to make it harder than ever. Over the past few years, the Department of Labor’s (DOL) has ramped up their enforcement efforts. They've been hiring more investigators to proactively audit contractors outside of the standard “complaint-initiated” method. (more…)Read More
How Cash-in-lieu Opt-Outs Increase Costs for Federal Contractors
On Dec 14th, the IRS released final rules shedding light on earlier ACA provisions (July 2016). However, it excludes updated language on the complex and controversial “opt-out arrangement” provision, leaving in place earlier guidance (Dec. 2015). (more…)Read More
The Government Contractor’s Guide to Service Contract Act (SCA) Compliance
Being a government contractor has always been complicated, but in the last few years, it seems as though the government is almost determined to make it harder than ever. There is no better evidence of this than the Department of Labor’s (DOL) new commitment to Service Contract Act compliance reporting. In recent years, as much as, 78% of contractors audited by the DOL were found to be non-compliant. It is no wonder that random audits (which almost never happened before) are now nearly half of all the audits that take place. With a number of contractors found noncompliant and DOL’s new commitment it should be no surprise that suspensions and debarments are up a combined 163% since 2010. This trend should have contractors stopping to truly assess their compliance systems. (more…) Read More
How “No Change” to the SCA Health & Welfare Benefit Rate Impacts Government Contractors
On 7/29/2016 the Department of Labor announced that they would not be raising the rate for Service Contract Act (SCA) Health and Welfare Fringe Benefits, keeping it at $4.27 per hour. A drastic departure from the previous two years 2013-2015 where the hourly fringe rate has climbed 12% (46 cents). Fringe Rate Fact: from 2007 to 2013, the average yearly fringe rate increase was 9 cents. To put it in perspective, the DOL has increased fringe rates every year for more than 20 years. What does this mean for contractors? At first glance, it sounds like good news for government contractors. Current contract fringe rates don't need to be updated. Wrap rates for bid proposals shouldn't change. Costs will remain similar to last year. All good, right? Not quite... Contractors tend to think of fringes as just another labor cost, but that's not the entire story. The fringe rate also assists contractors in paying for healthcare and other benefits. As benefit costs go up, fringes should offset those increases. "Premiums for single ($6,251) and family ($17,545) coverage increased by 4% in 2015, continuing a fairly long period (2005 to 2015) where annual premium growth has averaged about 5%." Kaiser Family Foundation/Health Research & Education Trust 2015 Employer Health Benefits Survey. With health care benefit costs and premiums going up, contractors thinking "no change" to the SCA Health and Welfare Fringe Benefit Rate is a "good thing" might feel differently once they see how much their 2017 renewals will run. Connecting the dots... It's like the cost of living going up, without getting a raise With no additional room in the fringe rate to help cover high renewals, contractors face some difficult decisions ahead. Having to choose between eliminating or decreasing an existing benefit or going deeper into their own pockets to cover these costs. Better benefits Now more than ever, contractors must ensure they are maximizing the fringe dollars. A fundamental shift in how they view fringes. As an advantage to their company and employees, instead of an expense or simply "meeting a requirement". Taking a different contracting approach to fringe benefits can free up a great deal of fringe dollars currently being wasted in costly, inefficient health plans. Contractors can improve contract profitability while increasing benefit offerings to employees. Contractor’s Choice Voluntary Benefits Trust is the Nation’s first and only plan that allows for premium benefits like Life, STD, TRICARE supplemental and more to be paid for completely by fringe dollars. By approaching fringes in a different manner, government contractors can increase profitability, lower costs and improve benefits. Not to mention having the flexibility to handle whatever changes the DOL implements next. To learn more about maximizing fringe benefits, Contact Us. Read More
SCA Compliance Checklist Part 8: Fringe Benefits
Any government contractor will tell you, there is no way to escape paying fringes. The best you can hope for is to get the most value you can for your dollar by maximizing your fringes. (more…)Read More
SCA Compliance Checklist Part 7: ACA Compliance
While every business needs to be aware of the changes in healthcare law because of the Affordable Care Act (ACA), government contractors have a few additional challenges facing them in meeting ACA compliance. (more…)Read More
SCA Compliance Checklist Part 6: Subcontractor Compliance
Government contracts without subcontractors would be like a rock band without a drummer. Not just because of the savings and ease they can provide a contractor, but because the government pretty much requires the use of them on contracts. (more…)Read More
SCA Compliance Checklist Part 5: Fringe Rate
When it comes to government contracting 'fringe rate' is a pretty simple and straightforward concept. However due to foggy enforcement over the years, there're more than a couple misconceptions surrounding fringe rate. (more…)Read More
SCA Compliance Checklist Part 4: Base Wages
If you look at a list of base rates for a contract, it seems simple enough. You classify a worker by their labor category/skill level, and then pay them the appropriate wage. But if you have been in government contracting before, very few thing are that simple- including base wages. (more…)Read More
SCA Compliance Checklist Part 3: Labor Categories
Labor Categories seem like a simple enough idea. The contract defines all the different tasks to be performed on that job. (i.e) how much to pay a person per hour for completing a set task. But, ask anyone who does contract payroll and they'll tell you, it's not that straightforward. (more…)Read More
1355 Piccard Drive
Rockville, MD 20850