Davis Bacon Pension Plans, Inc.

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How the Prevailing Wage Plan Works

"This IRS Approved Plan Can
Save You $2000 Per Year
Per Employee"

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.

Example of Employer Savings

Base Labor Rate:
Fringe Rate
Total Wage:
Deposit in Davis-Bacon Trust
Gross Payroll

Savings:
Fringe Rate
FICA/FUTA/SUTA/ * Workers Comp./ State Taxes/General Liability Ins.
Total Savings /Employee

With Plan
$25.00
8.00
$33.00
- 8.00
$ 25.00

$ 8.00

x 34%
$2.72/hr.

Total Savings 25 Employees 100 Employees 500 Employees	Monthly $9,068.00 $ 36,268.00 $ 81,333.00	Annually $ 108,800.00 $435,200.00 $2,176,000.00
Note: Savings based on 1600 hours worked per year

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

Employee Prevailing Wage Plan Benefits

Employee accounts are 100% vested from the first hour they work.

Each employee has their own allocated account, they can access anytime with a 1-800 number or online.

Employee accounts are not subject to either a front end or deferred sales charge.

Compare the Best to the Rest
Participation in the Davis-Bacon Pension Plan & Trust means your employees also save the amount which they otherwise would have paid to FICA or income tax on their Fringe Benefits.

In addition to their tax savings, employees also accumulate tax-deferred earnings on their total Trust deposit. These funds will not be taxed until withdrawn, usually at retirement, which occurs without IRS penalties after age 59 1/2.

Employee Account Accumulation

Based on $8.00/hr Fringe Rate
for 1,600 hours ($12,800/yr)

Assumed Rate of Return 8%:
After 10 Years $ 92,000
After 20 Years $292,000

Approximate Tax Savings
Based on $12,800 Deposit Amount
Social Security = $ 979.20
Income Tax = $3,484.00
Taxes Saved = $4,536.20


	Phone:	425 889 8855 ext 1
	Fax:	425 827 1987
	Email:	dbpa@davisbacon.org