North Branford company fined for underfunding retirement plan

NEW HAVEN, Conn. (WTNH) — A North Branford construction company has been fined $200,000 for underfunding its retirement plan and filing a false tax return.

According to court documents and statements made in court, Cherry Hill Construction was awarded and completed prevailing wage construction projects requiring payment of the prevailing wage rate plus the fringe rate, the cost of benefits to the employee. When a company is awarded a prevailing wage project, the company must submit certified payrolls that list the hours, prevailing wage rate and fringe they are paying each employee. The company can either pay the employee the fringe directly or open a benefit plan with the fringe payment being deposited into an account for the benefit of that employee.

Officials say Cherry Hill admitted it underfunded its retirement plan by approximately $950,000. It has fully funded its retirement plan and paid $193,000 in back taxes, interest and penalties.

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