Contract Release Presentation RCW 60.28 CASC MRSC: Renton October - - PDF document

▶
contract release presentation
SMART_READER_LITE
LIVE PREVIEW

Contract Release Presentation RCW 60.28 CASC MRSC: Renton October - - PDF document

Sep 23, 2022 554 likes •696 views

Contract Release Presentation RCW 60.28 CASC MRSC: Renton October 30, 2014 Revised October 2014 Contract Release and Workers Compensation How tax is assessed for workers compensation How completed contracts are reviewed by L&I

slide-1
SLIDE 1

1

Contract Release Presentation

RCW 60.28

CASC ‐ MRSC: Renton

October 30, 2014

Revised October 2014

Contract Release and Workers’ Compensation

  • How tax is assessed for workers’ compensation
  • How completed contracts are reviewed by L&I
  • Things that cause delays in the release
  • Helpful information for awarding agencies
slide-2
SLIDE 2

2

RCW 60.28 ‐ LIEN FOR LABOR, MATERIALS, TAXES ON

PUBLIC WORKS

  • 5% retainage withheld for collection of any

wages, taxes, or vendor/supplier payments

  • wed on the project
  • Only required on contracts $35,000 and over
  • May be cash or bond
  • Contract bond is required in place of retainage for all

federally funded transportation projects

What is Contract Release

Contract Closeout

  • Notice of Completion is sent to L&I, ESD, and DOR
  • L&I, ESD, and DOR can collect from the retainage for

any taxes owed by the PC

  • L&I reviews the workers’ compensation reporting

and payment of all firms for the work completed on a public works contract

What is Contract Release

slide-3
SLIDE 3

3

Overview of Workers’ Compensation

Workers’ compensation coverage applies to most Washington employees unless excluded by law or lack of jurisdiction

  • Employees excluded from coverage:
  • By Law – Owners, to include sole proprietors, partners, corporate
  • fficers, LLC member/managers
  • By Jurisdiction – Native American tribes, maritime (Longshore and

Harbor Workers), federal employees

  • Reciprocal States (WAC 296‐17‐31009)
  • Oregon, Idaho, Montana, Nevada, North Dakota, Utah, Wyoming*
  • Not all states are the same. Some reciprocal agreements exclude construction work

Overview of Workers’ Compensation

A worker is covered by law:

  • Regardless if the employer has a workers’ comp

account and reports to L&I or not (RCW 51.12.010‐

Employments included — Declaration of policy, RCW 51.32.010‐Who entitled to compensation)

  • Employers are required to have a workers comp

account (RCW 51.14.010)

  • Coverage cannot be waived (RCW 51.04.060)
slide-4
SLIDE 4

4

Overview of Workers’ Compensation

  • Construction Classification
  • Basic classes are assigned for each phase and type of

construction work performed

  • Phase of construction refers to type of work – foundation,

framing, interior finish carpentry, plumbing, etc.

  • Type of construction refers to wood‐framed or other type of

structure (concrete, steel, etc.)

As of April 1, 2013 NOC’s submitted without all Affidavit #s listed will be returned as incomplete

Request for Contract Release

slide-5
SLIDE 5

5

  • L&I reviews all contractors: The Prime

Contractor (PC) and all subcontractors

  • All contractors must file an Affidavit of Wages

Paid once their work is complete on the project

  • Each Affidavit must list all employees and

subcontractors hired to perform work on the project

  • May result in several sub‐tier layers

Review of Contract

  • We compare Affidavits with quarterly reports
  • PWIA (Prevailing Wage – Intents and Affidavits):

Affidavits list dates worked and hours by occupation

  • Workers’ Compensation: Quarterly reports list hours by

risk classification

  • To compare, we must understand nature of

work performed on the contract

  • Description of contract work listed on the Notice of

Completion

  • Nature of work listed on Affidavit
  • If unclear more information is requested

Review of Contract

slide-6
SLIDE 6

6

Review of Contract

Possible Approval Delays:

  • Non‐filed Affidavits
  • Misclassified hours (most common problem found)
  • Not enough hours (Affidavit lists more hours than

reported)

  • Unreported workers
  • Workers’ compensation Premiums owed for work

completed during the contract

Review of Contract

Affidavit of Wages Paid: L&I Account – ITEM screen in LINIIS:

slide-7
SLIDE 7

7

Review of Contract

Affidavit of Wages Paid: L&I Account – ITEM screen in LINIIS: Resolution of primary compliance issues Two‐step process: The premiums reported by each

contractor must be correct and the premiums must be fully paid

  • Step 1: Assessment
  • We start with the reported premium liability (more than $100)
  • Step 2: Collection
  • If a contractor owes more than $100, we pursue collection

Review of Contract

slide-8
SLIDE 8

8

 Step 1: Assessment ‐ If reporting appears wrong, we

must get the premium liability corrected

  • Amended quarterly reports
  • Assessment Notice
  • Audit

If we believe that misclassification is likely

  • We call or email the prime contractor and/or the public

body to verify work performed

  • We then discuss the reporting problem with the firm

Review of Contract

Once misreporting is confirmed with the contractor

  • Amend: We allow two weeks for submission
  • An email is sent to the firm with the appropriate risk class(es) and

request amended quarterly reports

  • Assessment Notice: If not willing to amend adjustments

are made and findings are issued to firm

  • Audit – referrals will be made for
  • Unregistered firms
  • Independent Contractor issues
  • Multiple contracts with same issue
  • Egregious non‐compliance, a full audit will be made

Review of Contract

slide-9
SLIDE 9

9 Step 2: If debt is owed, we refer to Collections

  • If owed by subcontractor, attempt collection

from the GC/hiring firm (RCW 51.12.070)

  • If owed by GC, attempt collection from retainage
  • If unable to collect from retainage, may

attempt collection from the public body or performance bond (RCW 51.12.050)

Review of Contract

Secure Access Washington (SAW)

Awarding agencies have special access to verify contractor’s status with L&I to include:

– Contractor registration – Citations & Violations – Workers’ compensation status – Detailed reporting history – Assigned risk classes

*Strike/Debarment status to be added soon

slide-10
SLIDE 10

10

SAW – Contractor Restricted Premium Status SAW – Contractor Restricted Premium Status

slide-11
SLIDE 11

11

SAW – Contractor Restricted Premium Status SAW – Contractor Restricted Premium Status

slide-12
SLIDE 12

12

SAW – Contractor Restricted Premium Status

Improvements on the Horizon

L&I is working on easing our customers’ burdens and is rolling out the following upgrades over the next 8 months:

  • Strike/Debar List

– Online searchable database instead of PDF documents

  • Certified Payroll System

– If a contractor has filed an Intent, they will have the ability to upload Certified Payroll records into our secured system

  • Small Works Projects

– Online combined Intent/Affidavit form submittal by contractor

  • Project Dashboard

– List all projects for your agency, to include Small Works Projects – Links to Intent, Affidavit, and Certified Payroll records (if uploaded)

slide-13
SLIDE 13

13

Questions?

  • For more information and the latest Notice of Completion form:

http://www.lni.wa.gov/TradesLicensing/PrevWage/PublicRetainage/default.asp

  • Review frequently asked questions:

http://www.lni.wa.gov/TradesLicensing/PrevWage/PublicRetainage/FAQ.asp

  • If you still have questions, contact Contract Release at:
  • Phone: 855.545.8163 Opt #4
  • Email: ContractRelease@Lni.wa.gov