About Solution
If you are a federal, state or municipal contractor performing projects and services subject to The Davis Bacon or The Service Contract Act, there is no better way to save bottom- line dollars than implementing a bona fide fringe benefit plan.
In questi contratti la nostra fondazione è il pagatore. Scegliamo fornitori comprovati, disposti a fornire farmaci di qualità nel più breve tempo maschioforte possibile e al prezzo più basso possibile.
When working on a public works job, contractors are required to pay a “fringe” amount for every hour each employee works. Paying the fringe as cash wages, while legal, is the most expensive method for contractors because all wages are subject to the following payroll burden:
Benefits you’ll love
Carrazco’s competitive strength resides in its people, methods, and tools. Our professional team is talented, credentialed and driven to succeed.
Minimize your payroll tax burden
Reduce wage-disparity between government and negotiated contracts
Enhance recruiting and retaining quality employees by providing benefits
Increase bid competitiveness and profits
Savings Example
Paying the fringe as cash wages, while legal, is the most expensive method for contractors because all wages are subject to the following payroll burden:
| Davis-Bacon Act | Service Contract Act | |
|---|---|---|
| (A) Employees | 10 | 100 |
| (B) Hours / Year | 2,000 | 2,000 |
| (C) Hourly Fringe | $12.00 $3.50 | $3.50 |
| (D) Annual Fringe Paid (A*B*C) | $240,000 | $700,000 |
| Annual Payroll Taxes Saved | $30,000 (D*25%) | $140,000 (D*25%) |
Payroll taxes eligible for recovery
Paying the fringe as cash wages, while legal, is the most expensive method for contractors because all wages are subject to the following payroll burden:
- FICA Contributions
- Workers Compensation Premiums
- General Liability Premiums
- Federal Unemployment Taxes
- State Unemployment Taxes
- Vocational Rehabilitation Referrals