Why Your Business Needs a Davis Bacon Pension Plan

Why Your Business Needs a Davis Bacon Pension Plan

Why Your Business Needs a Davis Bacon Pension Plan

Anyone that owns a business knows that along with it comes taxes, rules, and regulations. If you work in an industry where the government has ruled that you are required to pay a prevailing wage, then this is only one of the many costs you may accrue.


When running a business there are operational costs, along with payroll taxes, and hefty insurance premiums that may end up negatively affecting your bottom line. If you have employees on your payroll, then you might want to know about how you can guarantee their standard of living after they retire, but lower your overall costs as well. All of this can be done, with a David Bacon Pension Plan.

What is a Davis Bacon Pension Plan?

The Davis Bacon Pension Plan works according to The Davis-Bacon Act of 1931. This act  requires any contractor or subcontractor performing work on a federal government construction contract or federally assisted construction contract over $2,000, to pay their workers a specific fair and required prevailing wage. It also requires fringe benefits to be paid on similar projects. Having this form of pension plan ensures that you are following the law, and providing a safety net for your workers.

Lower Overall Costs

Because the Davis Bacon Act requires you to pay a specific wage, it often can require huge financial commitments on your behalf. This can be counterbalanced by taking advantage of the reduction in payroll taxes offered with the Davis bacon Pension Plan.


Additionally, this pension plan allows you to decrease your insurance premiums. For those who participate in the Davis Bacon pension plan, you will receive a reduced cost on your general liability premiums.


Overall both of these savings provide you to have a reduction in overall costs and save on your bottom line.

Offer Better Retirement Benefits and Attract Better Talent

Retirement benefits are something that skilled workers look at when choosing where they want to spend their time working. Although it is typically quite expensive to offer high-quality retirement benefits to your employees, if you are saving in payroll tax and insurance premiums, then you will be able to offer better benefits for your staff.


With a David Bacon pension plan, you will be able to pay your staff less than the prevailing wage, because you will contribute to the retirement income of your employees. This allows you to save while providing incredible benefits. Not only is this helpful for your employees, but it will draw higher quality talent to come work for you.

Become More Attractive to Customers

By saving on prevailing wage costs, insurance premiums, and payroll taxes you can lower your overall cost of overhead. In turn, this can allow you to decrease your total costs and offer more attractive rates to your customers. Especially if you work in a space where you must bid for construction contracts, having a lower bottom line will always bring you to the forefront.

Learn More About Davis Bacon Pension Plans

At Davis-Bacon Pension Plans, Inc., we offer the highest quality pension plans that can be beneficial to both you and your employees. By recommending the best options, we help you to reduce expenses and have more cash flow going in. Learn how our pension plans can skyrocket your business to success, call us at (425) 889-8855 today.