B-153359, MAR. 31, 1965

B-153359, MAR. 31, 1965

TO MR. MESCHOS G. MOSITEA:

REFERENCE IS MADE TO THE LETTER OF JANUARY 7, 1965, FROM YOUR ATTORNEYS RETURNING TREASURER OF THE UNITED STATES CHECK NO. 71,462, 370 PAYABLE TO YOU IN THE AMOUNT OF $66.32 ISSUED PURSUANT TO OUR DECISION DATED APRIL 10, 1964, AND SETTLEMENT CERTIFICATE DATED NOVEMBER 13, 1964, AND TO YOUR LETTER OF MARCH 19, 1965, REFERRING TO A LETTER DATED FEBRUARY 15, 1965, TO YOU FROM THE INTERNAL REVENUE SERVICE.

WITH RESPECT TO THE REFERENCED LETTER FROM THE INTERNAL REVENUE SERVICE (IRS), APPARENTLY THAT LETTER WAS WRITTEN TO YOU BY IRS AS A RESULT OF RETURNS FILED BY THIS OFFICE WITH THE DISTRICT DIRECTOR OF INTERNAL REVENUE AT PITTSBURGH, PENNSYLVANIA, CONCERNING WAGE ADJUSTMENTS MADE TO CERTAIN OF YOUR EMPLOYEES. AS REQUESTED, WE ARE ENCLOSING A COPY OF IRS FORM 941 FILED WITH IRS BY OUR OFFICE ON YOUR BEHALF LISTING THE INVOLVED EMPLOYEES, THE AMOUNTS OF WAGES PAID TO EACH, AND THE FICA AND INCOME TAX WITHHOLDINGS PAID FOR YOUR ACCOUNT THEREON. SINCE YOUR LETTER INVOLVES A TAX MATTER, WE ARE REFERRING IT TO THE INTERNAL REVENUE SERVICE FOR CONSIDERATION.

IN REGARD TO YOUR OBJECTION TO DISTRIBUTION TO YOUR EMPLOYEES OF MONEY WITHHELD FROM PAYMENTS DUE YOU, AND YOUR CONTENTION THAT THE AMOUNT OF $66.32 DOES NOT REPRESENT THE CORRECT BALANCE DUE YOU UNDER THE SUBJECT CONTRACT, YOUR ATTENTION IS DIRECTED TO OUR DECISION B 153359, APRIL 10, 1964, AND THE ATTACHED FINDING, COPIES ENCLOSED, WHICH WAS PREVIOUSLY FURNISHED YOU. AS WAS STATED IN THE REFERENCED FINDING, UPON INVESTIGATION BY THE GENERAL SERVICES ADMINISTRATION AND THE DEPARTMENT OF LABOR IT WAS DETERMINED THAT YOUR COMPANY HAD FAILED TO COMPLY WITH THE REQUIREMENTS OF THE CONTRACT AND LAWS APPLICABLE TO THE PAYMENT OF WAGES TO YOUR EMPLOYEES. PURSUANT TO THE PROVISIONS OF THE CONTRACT, THE AMOUNT DETERMINED TO BE DUE YOUR EMPLOYEES WAS THEREFORE WITHHELD AND FORWARDED TO THIS OFFICE FOR THE PURPOSE OF ADJUSTING SUCH WAGES. PURSUANT TO SECTION 3 (A) OF THE DAVIS-BACON ACT (40 U.S.C. 276A-2), DISTRIBUTION WAS MADE TO THE EMPLOYEES LISTED ON IRS FORM 941 IN THE AMOUNTS SHOWN. THE DIFFERENCE BETWEEN THE AMOUNT FOUND DUE FOR ADJUSTMENT OF WAGES ($2,268.10) AND THE AMOUNT ACTUALLY DISTRIBUTED TO DATE IS BEING HELD IN TRUST FOR THE BENEFIT OF THOSE EMPLOYEES WHO HAVE NOT YET BEEN LOCATED. IN ADDITION TO THE AMOUNT WITHHELD FOR ADJUSTMENT OF WAGES, $1,095 WAS WITHHELD BY GENERAL SERVICES ADMINISTRATION AS PENALTIES FOR VIOLATIONS OF THE EIGHT-HOUR LAW, 40 U.S.C. 324. THE $66.32 FOR WHICH THE CHECK RETURNED BY YOU WAS DRAWN IS THE DIFFERENCE BETWEEN THE AMOUNT WITHHELD BY GSA FOR WAGE UNDERPAYMENTS ($2,334.42) AND THE CORRECTED AMOUNT OF SUCH UNDERPAYMENTS FOUND BY THIS OFFICE AFTER REVIEW OF THE RECORDS.

YOUR LETTERS PRESENT NO ADDITIONAL EVIDENCE UPON WHICH OUR OFFICE COULD RECONSIDER THE ACTIONS TAKEN, WHICH WERE IN STRICT ACCORDANCE WITH APPLICABLE LAW AND CONTRACTUAL PROVISIONS. ACCORDINGLY, NO FURTHER ACTION BY OUR OFFICE IN REGARD TO YOUR LETTERS IS CONTEMPLATED. THE $66.32 BALANCE DUE YOU WILL BE FORWARDED UPON YOUR REQUEST.