Written by Kurt Needles
Needles & Associates
P: 303.430.4225 E:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

One step we auditors always perform is determining when contributions are due to the fund, known as the “Trigger Point.” A Collective Bargaining Agreement (CBA) may have union clauses that will give the employer some type of probationary period on new hires. This applies to the employers’ rights to terminate or when an employee’s union status must be obtained. It does not, however, apply to the Trust funds contribution unless specifically addressed in the CBA Benefit Section. The payroll auditor needs to read these sections of the CBA prior to the visit. We keep a “cheat sheet” for each group that details the trigger points for each benefit in a family of funds; they may be different.

Also the CBA, the benefit section may discuss whether the contributions are to be based on hours worked or hours paid (sometimes the CBA will refer to the plan document for this definition). There is a difference. Hours paid would include vacation, sick, holiday, bereavement, and personal time. Contributions on hours worked would be just that, hours actually worked on the job. Some variations include straight time only, hours over 40 per week and ceilings on monthly or annual hours.

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