If you run a business that relies on revenue from government contracts, you understand that federal regulations often impact your ability to generate profit. The government requires companies bidding on federal contracts to provide a ‘prevailing wage’ to their staff members. This means that businesses bidding on government contracts typically have higher operational costs than other businesses in similar industries.
Fortunately, Davis Bacon pension plans allow you to reduce your overall wage burden. In doing so, they can help you win more government contracts for your business. Let’s find out how!
How Davis Bacon Pension Plans Help You Lower Costs
Davis Bacon pension plans allow you to offset the amount you pay to staff by placing it into a pension plan program. In doing so, you can reduce the upfront wage you pay to staff and decrease the amount of payroll tax that your company is liable for. This means that you can shave serious money off your overall payroll tax bill each year.
Additionally, companies that have Davis Bacon pension plans can also take advantage of lower general liability premiums. This is yet another way that this type of pension plan program can help you reduce expenditure.
Lower Costs Mean More Competitive Bids
Depending on how your business is structured, wages are likely one of your highest costs. If you’re able to reduce the cost of employing your staff, you can offer more competitive bids than other companies seeking government contracts. Davis Bacon pensions plans make your business leaner, which is an excellent way to provide bids at lower prices.
Make Yourself More Competitive Today!
If you want to make your business more competitive, it’s time to contact our team at Davis-Bacon Pension Plans, Inc. We’ve helped countless business owners reduce their costs and win additional contracts. If you’re searching for a way to generate more revenue with government contracts, contact our office at (425) 889-8855.