Determining What Can be Included in the Rate of Pay

The issue of what constitutes "wages paid" for purposes of  determining whether the employer is meeting the required wage rate requirement has been a problem since the Inception of the LCA program. The DOL rules, as revised in January 1995,provide the first clear guidance on the Issue.

"Wage paid" include all the payments shown in the employer's payroll records as earnings for the employee that are disbursed "cash in hand, free and clear, " exclusive of legitimate deductions. The payment must be reported to the Internal Revenue Service, and all appropriate taxes must be withheld and paid, including income, FICA, and applicable state and local taxes. When a "totalization agreement" is applicable, under which social security taxes need not be withheld because equivalent payments are being made in the alien's home country, the employer must be able to document that such payments have actually been made.

For different Issues, click below:
Payments that may be included in the rate of pay 
Payments that may not be counted in the rate of pay
Acceptable deduction from the rate of pay
Requirement Acceptable that wages be pro-rated in regular installments

For further information, send your query to Aparna Davé.