KEYS TO MAINTAINING YOUR COMPETITIVE EDGE
GMR has the prevailing wage expertise to provide a competitive benefit package, an investment that will produce great results. Our primary focus is to enhance your profitability by offering services no one else can. Our fully customizable benefit package gives you a competitive advantage over your competition.
- Cash fringe payments are treated as wages, subject to payroll burden including employer insurance (worker’s compensation and liability) and taxes (FICA, FUTA, state unemployment.) However, an employer can use prevailing wage fringe supplements for bona fide benefit plan, reducing payroll burden.
- A reduction in payroll burden decreases operating expenses, to increase competitiveness, resulting in increasing bid wins of prevailing wage work.
- If you already offer employee benefits such as holiday/vacation/ sick/personal time, insurance, retirement, you can use prevailing wage fringe supplements to pay for benefits already being provided – avoiding double paying. We’ll help you determine how much double paying really costs you.
- If structured correctly, retirement plans can accept fringe supplements as employer contributions for sources like safe harbor, maybe safe harbor, and profit sharing. These plan provisions not only benefit the employees, but owners and Highly Compensated Employees (HCEs) as well.
- Streamlining internal administrative procedures, such as COBRA costs, adds soft dollar savings.
- Providing a competitive benefit package to employees can result in intangible benefits such as higher productivity, less absenteeism, less employee turnover, etc. The benefit plan is backed by GMR’s comprehensive annualization compliance support and expertise.
|Fringe in Employee Paycheck||Fringe in Health and Welfare Trust|
|Employee Base Rate/Hour||$20||$20|
|Employee Fringe Supplement/Hour||$15||$15|
|Payroll Burden (Worker’s Comp, FICA, Liability)||30%||30%|
|Total Hourly Labor Burden Cost||$10.50||$6.00|
* Savings of $4.50/hour per employee equates to $135,000 savings (20 employees, annually working 1500 hours, 100% PW work)