If you’re a business owner that frequently bids on government contracts, you’re likely aware of the prevailing wage regulations. Businesses that bid on government contracts must pay a prevailing wage to their employees, which can drastically increase the cost of staff for many businesses. Fortunately, Davis Bacon pension plans allow business owners to reduce costs and offer benefits to their employees.
Davis Bacon Pension Plans Benefit Both Parties
The primary reason many business owners access Davis Bacon pension plans is that they reduce overall payroll tax and general liability costs. This means that while government contracts require your business to increase wages to your staff, you can offset some of this cost by placing wages into a pension plan and reducing your payroll tax.
This type of pension plan is an excellent way to reduce the financial burden associated with federal regulations on bidding for government contracts. By reducing your costs, you’ll be more competitive during the bidding process, and your business will be better positioned to profit from the contract.
Still, it’s not just your business that will benefit from a prevailing wage pension plan – your staff will also be able to take advantage of various aspects of this type of pension program. Employees will be able to reduce their FICA or income tax burden. They’ll also be able to take advantage of tax-deferred earnings.
Ready to Find the Perfect Davis Bacon Pension Plan?
If you’re a business owner that bids on government contracts, it’s critical to partner with a reliable Davis Bacon pension plan provider. At Davis-Bacon Pension Plans, Inc., our primary goal is to provide excellent pension plan options to our commercial customers. If you’d like to discuss our pension plans, or you need more information about how they can save your business money, don’t hesitate to contact us at (425) 889-8855.