If you own a business that frequently bids on government projects, you understand how critical it is to reduce your costs. Unfortunately, companies that win government contracts must pay a prevailing wage to staff members, which can drastically increase operational costs and negatively impact profitability.
Davis Bacon pension plans allow businesses to reduce the financial burden of prevailing wage employment.
Reduce Payroll Tax
One of the primary benefits of a Davis Bacon pension plan is a reduction in payroll taxes. By paying your staff less money upfront, you will be able to reduce your overall payroll tax burden. As the prevailing wage can cause severe financial obligations for businesses, a lower payroll tax bill can be a major relief for many employers.
Decrease General Liability Premiums
For many businesses, general liability insurance can be a significant cost. Using a Davis Bacon pension plan can help you reduce your general liability premiums. It’s an excellent way to decrease the cost of protecting your business.
Win Additional Bids
By decreasing your internal employment costs, you’ll be better positioned to provide competitive quotes and win government contracts. If you want to make your business lean and capable of winning the most competitive government jobs, using a Davis Bacon pension plan can help.
Increase Profitability
By reducing costs and increasing your successful bid rate, your business will be well-positioned to increase its profitability. As a business that bids on government contracts, you’re well aware that margins are often small if you have to pay the prevailing wage to staff members. A Davis Bacon pension plan can help you increase the financial success of your company.
Provide Retirement Benefits to Staff Members
While reducing payroll tax and increasing your firm’s competitiveness are excellent benefits for your business, there are also advantages for staff members. While the upfront wage you pay to your staff will be less than the prevailing wage, a Davis Bacon pension plan will contribute to the retirement income of your employees. By using a pension plan to offset your costs, you’ll also be offering excellent retirement benefits to your staff.
Contact Davis-Bacon Pensions Plans, Inc.
At Davis-Bacon Pension Plans, Inc., we partner with employers to help them reduce expenses and increase profitability. Our pension plans offer excellent benefits to staff and help you enhance your competitiveness in the bidding process. To speak to us about our pension plans, contact us at (425)889-8855.