By constructing a bona fide fringe benefit plan, you’ll increase profits. Submit more competitive bids. Build employee loyalty.
Direct Advisors maintains a thorough understanding of the laws governing prevailing wage in the construction industry.
Find out how we can help you design and administer a bona fide benefit plan that meets federal and state contract compliance requirements.
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How a Contractor Can Save $1,200,000
A contractor can choose between providing the prevailing fringe benefit rate as additional cash wages or as bona fide benefits. The cost of paying the fringe rate as cash wages can be expensive since wages are subject to payroll taxes and payroll-based insurance premiums. In most circumstances, this includes FICA, unemployment taxes, workers compensation premiums, and liability insurance premiums. These costs are typically referred to as “labor burden” and can range between 15%–40% of payroll (depending on rates paid for workers compensation and liability insurance).
Annualization of Fringe Benefits – How to Calculate with Examples
Annualization is...
Funded vs. Unfunded Prevailing Wage Bona Fide Benefit Plans
All fringe benefit...
