Enter the World of Government Contracts Without the Hassles
If you own a small business, chances are you have heard about how lucrative government contracts can be in today's market. But you probably also know that to win a government contract you must show that your workers are offered wages and benefits that compare to the prevailing market. For many people, that seems to be a deal breaker. But it shouldn't be. The Davis-Bacon Act provisions can benefit both you and your workers.
Consider this: your employees stand to realize a true tax benefit when you successfully win a government contract. Why? They can save money that they would have paid to the government through the Federal Income Credit Act (FICA) or income taxes on their fringe benefits.
What's more, your employees will be able to see the proof for themselves. Let's assume that you have an employee who would earn $8 per hour in fringe benefits according to the prevaling wage. If he or she works 1600 hours in a given year, the total benefits they earned would be $12,800.
If you assume an eight percent rate of return per year, after 10 years they would have accumulated a benefit of $92,000. After 20 years, that amount would skyrocket to $292,000. Compared to a worker who paid into Social Security and income taxes due on the benefit your employee would save $979.20 in Social Security payments, $3484 in income tax and realize an overall additional benefit of $4536.20.
That is a real bonus for contract workers! It is also a bonus for you because you can delve into the government contracts that others pass by. Don't be afraid of trying to navigate uncharted waters either! Davis-Bacon Pension Plans Inc. is there to help you walk through the maze of government regulations and can ensure both you and your workers that their compensation will comply with government regulations. Don't wait another day to guarantee your business a competitive edge! Check out Davis-Bacon Pension Plans today!
Tammy Emineth is an expert in custom content and original articles for blogs, website, press releases and more. Contact me anytime and feel free to subscribe to this blog to stay up to date on my latest blogs and informative information. Email me or contact me for Real Estate Website Marketing and SEO Content Writing.
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