Many contractors pay the fringe benefit portion of the prevailing wage as additional cash wages, not realizing that it’s inflating their bids and costing them more in payroll taxes. When a company wins more contracts, employees have continued work. Because adding fringe benefit package reduces the payroll taxes and other costs incurred by paying the fringe as cash, it allows companies to reduce their labor costs and win more jobs, including higher paying public jobs.
Whether you are a service contractor working under an even numbered (average) or odd numbered (individual) contract, or a construction contractor required to provide prevailing wages and certified payroll, we have the necessary tools to help you conform to federal contract standards.
The McNamara–O’Hara Service Contract Act of 1965 (SCA), codified at 41 U.S.C. §§ 351–358, requires general contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality as determined by the United States Department of Labor, or the rates contained in a predecessor contractor’s collective bargaining agreement. This is also known as the prevailing wage.
Win more contracts, save money and offer a true Bona Fide fringe benefit package by offering a hourly cost fully insured major medical compliant fringe benefit plans.