CAC training fund contributions: who pays, how much, and when
The training fund contribution is the public works cost subs most often discover after the fact. The rules below are from the Division of Apprenticeship Standards public works page and Labor Code 1777.5.
Who pays
A contractor awarded a public works contract who, in performing any of the work, employs journeymen or apprentices in any apprenticeable craft or trade contributes to the California Apprenticeship Council the amount the Director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site (DAS, restating section 1777.5(m)). Subcontractors in apprenticeable crafts are contractors for this purpose.
How much
The rate is set per craft and area in the Director's general prevailing wage determinations, published by the Office of Policy, Research and Legislation. Training contributions must be paid for every hour worked by every journeyman and apprentice in an apprenticeable craft, including overtime. They cannot be paid to the workers instead, unless the craft is not apprenticeable.
When
Training funds are due and payable by the 15th of the month after the month the work was performed, sent with a CAC-2 form to DIR's California Apprenticeship Council, or reported through DIR's online CAC training fund contributions page. A project that starts on the 20th has its first contribution due on the 15th of the following month.
The credit
A contractor may take as a credit against the council contribution any amounts it paid to an approved apprenticeship program that can supply apprentices to the site of the public works project. Contractors under a collective bargaining agreement that already pays a program's training fund typically owe the council nothing further for those hours; contractors with no plan owe the council the full amount for every hour.
How it shows on certified payroll
On the WH-347 and the eCPR, training is one of the hourly fringe contribution lines, alongside health and welfare, pension, and vacation and holiday. On the eCPR the fringe lines are hourly amounts, while the deductions are period totals, which is one of the format rules that trips uploads (the upload errors page). If the training contribution is paid to the council rather than to a plan, the payroll and the CAC-2 have to tell the same story for the same hours.
What we do
We prepare the CAC-2 with your filings for the projects that need it, from the same payroll export, with the hours reconciled to the certified payroll, and a person reviews it before it goes out. The DAS 140 and DAS 142 apprenticeship forms are handled the same way. Tell us at setup which projects and crafts are involved.