In March 2021, President Biden unveiled a sprawling $2 trillion infrastructure plan dubbed the American Jobs Act. The colossal proposal will put billions of dollars towards major construction contracts, creating massive growth potential for government contractors. There’s plenty to consider, as contractors plan ahead for this tremendous opportunity on the horizon.
What is the American Jobs Act?
The American Jobs Act of 2021 requests $2 trillion over eight years to update the nation’s infrastructure. This plan includes major construction contracts for roads, bridges, and ports, and also addresses more broad initiatives and explorations of alternative energy and bringing modern conveniences to more Americans. The plan includes provisions on wages for essential workers and job training, as well. The spirit of the American Jobs Act is an investment in American companies and workers.
What Opportunities Can Contractors Plan For?
The American Jobs Act represents a massive opportunity for jobs and growth, especially for government contractors. Successful contractors plan ahead and strategize to put forth their best possible bid. Fringe benefits are the “ace in the hole” for competitive and cost-conscious contractors.
A contractor’s plan that puts the fringe allocation specified in the contract towards bona fide health and welfare benefits is at a distinct strategic advantage over a competitor that pays the fringe allocation as cash wages to its hourly employees working on the contract. When a government contractor pays the fringe obligation in cash in lieu of benefits, that contractor takes on additional payroll tax burdens, usually in the form of increased premiums for workers comp, FUTA, SUTA, and FICA! Not to mention that healthcare benefits are highly sought after when hiring new employees and retaining the great workers that employers already have.
A well thought-out contractors plan considers not only the opportunity presented by the American Jobs Act but looks ahead to contractor compliance concerns and the unique challenges faced by contractors.
A Competitive Contractor’s Plan Makes All the Difference!
Fringe benefit solutions offer a cost-effective and adaptable solution that addresses the top concerns of government contractors. From flexible solutions like hour banking and telemedicine, to traditional and valued benefits like healthcare and retirement options, the right contractor’s plan is a valuable tool in the competitive contractor’s arsenal.
As contractors prepare to seize the infrastructure opportunities that the American Jobs Act brings, Boon offers its clients an expert in their corner. In addition to our fringe benefit solutions, Boon provides a deeper understanding of the government contracting space and the ability to help contractors plan ahead and craft the best solution.
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