Prevailing Wage Compensation

[jeff77]

We have a plan that is on the Sungard VS document.  Comp defined as w-2 wages.  As part of the Prevailing Wage requirement they give a 3% SHNEC and the rest is given as a Profit Sharing contribution.

My question is when determining the amount for the 3% SH what compensation is used? Lets say the job calls for $20 total and $4 has to be the PW benefits.  Would the comp be the $20 or the $16 because that is what they are paying their employee in wages?

TIA

[CuseFan]

the PW contributions are not compensation. person's w-2 would be $16, safe harbor would be $.48, and the profit sharing (or PW) would be $3.52 as it could be offset by the safe harbor (document should have that specific language).