Home / Compliance / Compliance Overview

Compliance

Government contracts are subject to stringent regulations, including …

  • The Affordable Care Act
  • The Service Contract Act
  • The Davis Bacon Act
  • Living Wage Ordinances
  • State Prevailing Wage Laws
  • The Davis Bacon Related Act

Keeping in compliance with these laws can often leave a government contractor overwhelmed and confused, especially when it comes to paying the required fringe benefit.

Employers have the choice of paying the fringe benefit as additional cash wages or providing a bona fide fringe benefit plan. Some contractors choose to pay the fringe benefit as cash in lieu, believing it’s the simplest way to comply with the law. But choosing this option is an extremely expensive way to comply because it increases their payroll burden and makes them less profitable and less competitive in the bidding process.

A BONA FIDE FRINGE BENEFIT PLAN IS ONE OF THE MOST COST‐EFFECTIVE STRATEGIES FOR REDUCING PAYROLL COSTS

Cash wages are subject to payroll taxes such as FICA, FUTA, SUTA, and workers compensation. But if the contractor moves that money into a pre‐tax bona fide benefit program, theyʹll experience substantial savings. The advantages are two‐fold: the employer saves on unnecessary payroll costs, while the employees benefit from health care and retirement savings accounts.

Best of all, GSA has the knowledge and expertise to do all the work for you. With GSA contractors can:

  • Guarantee compliance
  • Reduce payroll and overhead costs
  • Provide a cost‐effective and comprehensive benefit package for all of their employees
  • Streamline their administrative process and budget
  • Benefit from fully tailored SCA Compliance training
  • Rely on a company with over two decades of experience in the government contracts arena
  • Use the GSA Benefit Trust plan structure when bidding on future projects

PROVIDING BENEFITS IN LIEU OF CASH IS ONE OF THE MOST COST‐EFFECTIVE STRATEGIES FOR REDUCING PAYROLL COSTS