Procedures / Delinquencies and Collections

Delinquencies and Collections

Overview

Reports of carpenter hours and remittances of contributions are due the 15th of the month for the prior month (e.g., June reports and contributions are due by July 15th). Reports and contributions deposited after the 15th day are delinquent under the Northwest Carpenters Trusts collection policy. The Employer Status Report is available online to provide information about the current status of an employer's reports and remittances. The Trusts reserve the right to forego any or all of the following steps if it's believed that abiding them may jeopardize the ability of the Trusts to collect payment for outstanding contributions.

Delinquency

An employer with a new agreement generally receives a call from Employer Labor Services before a delinquency notice is issued. This call is a courtesy we extend only to new employers in consideration of the possibility that the employer may not be fully accustomed to our procedures, forms and policies. During the call, the Trusts representative will verify that the employer received the report forms and understands how to use them. In the process, our representative may identify other issues regarding the status of the report and the pending payment. The call is an opportunity for the employer to ask questions to clear up any confusion or misunderstanding about our general process. Additional follow-up calls are possible to obtain information and offer assistance.  

Current employers may receive as many as three delinquency notices from Northwest Carpenters Trusts before we refer the matter to an attorney for collection.

  1. First Notice – 10 days after due date.
  2. Second Notice – Two weeks after first notice.
  3. Third Notice – Two weeks after second notice. The third notice gives the employer 10 business days to remit payment before the matter is referred to a collection attorney.

One week after sending the third notice, Northwest Carpenters Trusts will call the employer to follow up on the status of the payment due and to inform the employer that referral to a collection service is imminent. The Trusts may follow up again with the employer prior to referral, if warranted.

Interest and Penalty

Contributions deposited after the due date are delinquent and subject to the following:

  1. Interest on delinquent contributions will be assessed at 7% per annum for the first 30 days, and 12% per annum after 30 days.
  2. Liquidated damages of a flat 12% of the entire reported amount will be assessed for delinquent contributions past 30 days.

Legal Collections

Failure to remit benefit contributions will result in referral to a collection attorney. Employers in collection status are subject to the following:

  1. Interest at 12% per annum on the unpaid balance
  2. Liquidated damages at 12%
  3. Attorney fees and costs

Once a delinquent account has been referred to a collection attorney, the employer can expect one or more of the following:

  1. Proposal to pay amounts owed through payment plan or joint check agreement (see Payment Options below)
  2. Claim filed against public works bond
  3. Claim filed against contractor license bond
  4. Summons and complaint filed with state or federal court
  5. Garnishment of bank account(s)

An employer with a delinquent account must continue to submit monthly remittance reports on or before the due date, whether funded or unfunded. This allows the Trusts to grant health and pension credit to the reported members pending receipt of payment through its collection efforts.

Payment Options

If an employer is unable to pay at the time of the pending referral to collection, two options are available:

  1. Joint check: If the employer is a subcontractor, the general contractor can issue a joint-check for the balance owed.
  2. Payment Plan: In certain circumstances, the Trusts may agree to a payment plan based on the following general guidelines: If the employer's debt is manageable, and if the employer has been communicative and cooperative throughout the delinquency follow-up process, the Trusts may instead offer a payment plan if there is confidence that the employer can make timely installment payments.
    • Interest charges will be assessed on the late-paid contributions (see below).
    • Depending on the circumstances, a 3-month, 6-month, and/or 12-month payment plan would be offered.
    • The payment plan would only apply to the amount owed at the time of the agreement. The monthly installment amount would be determined by the sum of the unpaid contributions, interest and liquidated damages (see above). A billing fee of $5 per month will be added to the monthly installment amount.
    • The employer must stay current on all subsequent reports to avoid attorney referral.

Related:
Delinquencies and Collections FAQs

Employer Checklist

Do you understand our expectations for employers? The links on the left can direct you to the details, but our requirements boil down to 4 simple things:

1. Fill out the form.
2. Write the check.
3. Deposit funds by due date.
4. Keep good records.

We know it can be frustrating when you don’t have the right information. Be sure to contact us with your questions and suggestions.

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