How the Prevailing Wage Plan Works |
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| Lower Your Bid If you are an open-shop contractor working on public projects, you are required to provide 100% of the local Prevailing Wage on public projects, but you may choose to pay only the Base Rate in cash. By contributing the Fringe Benefit Rate in the Davis-Bacon Pension Plan & Trust you save the amount you would have paid in payroll taxes, *workers compensation and insurance premiums on those funds. |
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| Example of Employer Savings | ||||||||
Savings like these enable you to actually lower your bid while significantly increasing profits. The lower your costs of doing business, the more competitive you can be. * Workers Compensation is part of payroll in most states
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Employee Account AccumulationBased on $8.00/hr Fringe Rate for 1,600 hours ($12,800/yr) Assumed Rate of Return 8%: Approximate Tax Savings |
