3 Best Practices for Saving Money on Payroll
Post date
June 24, 2019
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Article by Jack Biltis, Construction Business Owner
If you work on taxpayer-funded jobs or you provide services to a government agency, you’re probably subject to the Davis-Bacon Act, McNamara-O’Hara Service Contract Act, state prevailing-wage laws or local living-wage laws. And small compliance mistakes quickly add up to big costs.
On average, a 12-man company that works on public jobs 25% of the time will spend 15 hours a week on compliance issues/paperwork and waste $67,184 annually on overpaid wages and taxes. Three main reasons contractors overpay on government projects are the misapplication of fringe credits, miscalculation of annualization and misunderstanding of compliance."