In the current market, contracts are won on the narrowest of margins. Contractors find themselves facing financial challenges that started with the COVID-19 pandemic and are made worse by current inflation rates. Every dollar must count. Offering fringe benefits, rather than paying the fringe rate out in cash, is a savvy solution that contractors can build competitive strategies from. That’s the power of fringe benefits.
Addressing Contractor Compliance Concerns
Compliance is what keeps contractors in the game. A recent uptick in Department of Labor audits and new contractors entering the space through Infrastructure and Investment Jobs Act opportunities has put the entire contractor community on high alert. Proper reporting and careful fringe contribution administration must span across multiple contracts, for each employee, from the prime contractor to the subcontractor. If that sounds overwhelming, we don’t blame you!
As a third-party administrator, Boon has the experience and expertise to manage these concerns.
The Cost Saving Advantage of Fringe Benefits
The contractor that puts the fringe rate into fringe benefits is at a distinct advantage from their competitor that pays the fringe amount out in cash. Contractors that offer fringe benefits don’t take on the payroll tax burdens of contractors that put the fringe into cash. Instead of increase premiums on workers compensation, and increases in FICA and state taxes, contractors avoid those costs and offer a benefit to their employees. Not to mention that it puts them at a competitive advantage on future bids.
In this highly volatile employee market, offering a benefit is critical in attracting and retaining talent. Furthermore, as healthcare costs rise and the demand for some type of insurance coverage becomes greater, the contractor offering fringe benefits comes out on top. Offering benefits increases productivity among workers and reduces healthcare spending overall. From bidding to business operations, there is an opportunity for fringe benefits to offer a well-rounded solutions.
Fringe Benefits: A Winning Strategy
For 40+ years, Boon has been a top innovator in the government contracting space. We have the expertise to navigate the constantly evolving landscape and meet new challenges with comprehensive solutions. We take a consultative approach to learning what each unique contractor client needs and finding the fringe benefit offering that will take them where they want to go. We’re the expert in your corner.
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