Service Contract Act compliance

Our client’s need

A large, multi-national services contractor engaged Baker Tilly to identify Service Contract Act non-compliances under multiple contracts. Baker Tilly deployed a team of experienced professionals to review payroll and fringe benefit data for covered employees, in addition to identifying other areas of concern.

Baker Tilly solution

  • Performed an in-depth assessment to identify problems with labor classifications, conformances, and accompanying fringe benefit calculations.
  • Corrected identified issues by implementing payroll system changes, adding certain policies and procedures to address control gaps, and restructuring their employee benefit payments.

Results achieved

The contractor benefitted from increased compliance and savings through the restructuring of employee payments. Following the initial engagement, Baker Tilly was asked to prepare and submit the contractor’s voluntary disclosure to the Department of Labor.