SIMPLE Plans Don’t Work for Prevailing Wage Jobs
September 23, 2012 Written by: Written by Mike Rogers, Chief Compliance Officer
Are you a government contractor working on prevailing wage jobs? If you have a SIMPLE plan, you should know that SIMPLE plans cannot be used effectively for prevailing wage jobs, and cannot be used in conjunction with a prevailing wage plan.
Changes to a SIMPLE Plan must be made by November 1st, so if you plan to terminate your plan you should start the process now. IRS rules require that employees be notified of the termination of a SIMPLE plan 60 days before the enrollment period for 2013.
For more information on SIMPLE plans and the reasons they’re not a good fit for government contractors, visit our website.