Hour banking works to the advantage of both contractors and employees. It provides contractors with a way to avoid overpaying health and specialty benefit premiums, and at the same time it provides employees with a method for extending coverage during work stoppages.
Get a per-hour rate for health coverage.
If your work includes multiple job sites, multiple trades, multiple fringe rates, private and public work and multiple carriers to pay, doing the backward math to determine how much fringe to take credit for from your monthly premium spend can be daunting. Hour banking reduces this accounting hassle by giving you a per-hour rate for health coverage. Benefits are provided and tracked in hourly increments based on the hours an employee works — simplifying your accounting, reducing the chance of overpayment, and giving you a real strength when preparing bids.
Your company will benefit from hour banking if:
Banking hours for the future.
Hour banking also allows your employees to "bank" hours during peak work periods, then use these excess hours to maintain benefits coverage during slow periods and work stoppages. Employees can: