Sub Specialty Contractor

  • 1.  Federal job in California

    Posted 08-23-2023 12:08

    We are a specialty contractor based in Arizona.  I just found out (after the fact of course) that we have started work on a federal project in California.  I don't even know where to begin getting us "legal" to work there.  Our business development manager is saying since it's federal work we don't have to do anything.  I find that hard to believe so I'm checking to see if any of you can tell me what's what.  



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    Christine Kettelkamp CPA, CMA, CCIFP
    CFO
    Jenco Inc.
    Scottsdale AZ
    (480) 513-1601
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  • 2.  RE: Federal job in California

    Posted 08-24-2023 07:52

    here's what I would do:

    1) find the original contract, if it's prevailing wage, the determination should be attached. If there is no determination, ask the customer to affirmatively confirm no rates.

    2) Audit the pay to ensure all hours after 8 are paid as overtime. If it's 10s, all hours after 10.

    3) if you find it's prevailing wage, then check your accounting system to setup the reporting.

    4) immediately pay the employees any amounts due.



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    Thomas Herrington
    Hollywood FL
    (770) 401-8065
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  • 3.  RE: Federal job in California

    Posted 08-24-2023 10:16

    California is definitely going to want their share.  You have to register with the Franchise tax board, register with EDD and you will be filing a California tax return.  It does not matter that it is federal work!  You have to withhold California taxes for any employees working there.  You have to pay California prevailing wage which is generally higher than Davis Bacon. You will need to pay use tax on any materials as applicable.  California has apprentice requirements on all prevailing wages projects.  There are a whole host of things to look at and consider.  It looks like business development has put you behind the proverbial 8 ball!



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    Rebecca Jenne CPA, CCIFP
    Controller
    International Lining Technology, Inc.
    Reno NV
    (775) 284-2929
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  • 4.  RE: Federal job in California

    Posted 08-24-2023 11:17
    Exactly! I was assuming your company has a contractors license. If so, all the registrations had to be done at some point.

    Also, don’t forget the Industrial Relations registration.

    If you don’t have those accounts, buy the current CFMA state tax guide and it has the infroamtion you need.


    Original Message


  • 5.  RE: Federal job in California

    Posted 08-25-2023 07:40

    In addition to what has already been mentioned I would definitely find out if there are any hoops you have to jump through to submit draws.  Many federal agencies require submission of invoices through a portal and the setup process can be very tedious and confusing.



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    Mason Myska
    Accounting Manager
    Airco Mechanical, Ltd
    Round Rock TX
    (512) 598-2086
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