Reporting of Employer Contributions

Once a collective bargaining agreement is signed by the employer and ratified by Local 12, Local 12 provides a copy of the agreement to the Trust Funds. Upon receipt of ratified agreements, the Employer Accounting Department of the Trust Funds will contact all new employers to ensure they receive the appropriate monthly report forms and a new employer orientation packet.

General Reporting Requirements

Contributions are due and payable on the 10th day of each month for all hours worked by and/or paid to each covered employee during the prior calendar month. If a payroll period extends from the prior month into the current month, employers may report all hours for that payroll period on their monthly report form. Contributions are considered delinquent if payments and reports are received after 4:30 pm on the 20th of the month after the month in which the work was performed. If the 20th falls on a weekend or holiday, contributions are delinquent if not received by 4:30 pm on the next business day after the 20th. Employers are required to file a monthly report on the form established by the Trust Funds each month regardless of whether the employer has employed any employees or not. Employers, who fail to pay contributions and/or submit reports to the Employer Accounting Department on or before the due date will be assessed liquidated damages in the amounts provided under the applicable collective bargaining agreement and Trust Agreements. Most of the agreements provide for liquidated damages equal to 10% of the delinquent contributions or $25.00, whichever is greater. Employers who fail to pay contributions and/or submit reports on or before the due date will also appear on the monthly Delinquency List promulgated by the Employer Accounting Department, unless the employer is in bankruptcy or has entered into a settlement agreement covering all delinquencies.

Signatory employers are obligated to report and pay contributions for all hours of employment (worked and/or paid) of each employee who performs any work covered by the agreement. If an employee is paid by any method other than (or in addition to) hourly wages, including but not limited to draws, bonuses, profit distributions or dividends, the employer is obligated to pay contributions on behalf of that employee at the specified hourly rates based on a minimum of forty (40) hours per week of employment. This obligation shall not be diminished by evidence that the employee worked or was paid for fewer than forty (40) hours in any week.

An employer, at the discretion of the Trust Funds and Local 12, may enter into a Principal Employee Program Participation Agreement that allows the employer to pay flat rate monthly contributions on behalf of one or two employees who also are owners of the employer. However, if the employer fails to timely pay the flat rate monthly contributions, then the employer is obligated to pay contributions on behalf of those employees based on forty (40) hours per week of employment. Please contact the Employer Accounting Department for additional information.

EmployerXG-Online Remittance

Self-Employed Individuals and Owner-Operators.

Signatory employers may not use a self-employed person to perform any work covered by the agreement. A “self-employed person” is someone who works for an unincorporated entity, such as a sole proprietorship or partnership, in which that person has a ten percent (10%) or greater ownership interest. Such self-employed persons include independent contractors who operate their own equipment to perform work covered by the agreement. Persons who are such owner-operators must be put on the payroll, and become bona fide employees, of the signatory employer. The signatory employer must pay contributions on behalf of such employees in the same manner as it pays contributions on behalf of its other employees who perform work covered by the agreement. However, an unincorporated signatory employer may not use its owners to perform covered work nor may it pay contributions on their behalf to the Trust Funds. When discovered, improper contributions made on behalf of owners of an unincorporated employer will be refunded without interest. Shareholders of a corporation which exercises the election under Subchapter S of the Internal Revenue Code during any Plan Year must be reported to the Employer Accounting Department if they perform any work covered by the collective bargaining agreement, and the employer must notify the Operating Engineers Pension Trust of the total compensation each such shareholder received from the employer during each Plan Year.

Non-Bargaining Employee Participation Agreements for the Operating Engineers Health & Welfare Fund.

At the discretion of the Trust Funds, employers may enter into a participation agreement allowing employees who do not perform any covered work within Local 12’s jurisdiction to participate in the Operating Engineers Health and Welfare Fund. Under such an agreement, the employer makes flat rate monthly contributions to the Operating Engineers Health and Welfare Fund on behalf of all of its employees who do not perform any work within Local 12’s jurisdiction, except for sole proprietors or partners who own ten percent (10%) or more of the employer capital or profits. Such sole proprietors and partners may not participate or receive benefits in any of the Trust Funds.