The Boon Group News

Try our Cost Savings Calculator to find the potential for tax and payroll savings available to you! As a Government Contractor working under Davis Bacon, Service Contract, or Living Wage Regulations, you have the choice to either pay fringe benefit obligations in Cash or through Benefits. This table will provide you with an example of the savings that may be available to your company if you utilize fringe contributions to provide "bonafide" benefits in lieu of paying cash wages. However, please note that these calculations are for illustrative purposes only. Because the table does not take into account every factor involved in your situation which may impact the final results, the final results may vary from the illustrative computations.

*Effective June 22^nd, 2010; the fringe rate for all new contracts falling under SCA wage determination will be $3.50.

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Davis Bacon

Service Contract Act

Total Number of Employees on Contract
Hourly Wages:
Average Hourly Wages	$
Fringe Rate	$
Payroll Burden	%

Cost Savings Analysis for Contractors	(No Benefits) Fringe Rate paid in cash.	(With Benefits) Fringe Rate paid into Benefit Plan.
Cash Wages:	$	$
Fringe Paid to Benefit Plan:	$	$
Payroll Burden : FICA (Social Security Taxes) Workers Compensation Premiums Public Liability Programs Federal Unemployment Taxes State Unemployment Taxes	$	$
Total Cost Per Hour:	$	$
Hourly Savings Per Employee:	$	$
Monthly Savings Per Employee:	$	$
Annual Savings Per Employee:	$	$
Annual Employer Savings:	$	$