Using Fringe Dollars to Neutralize Obamacare
As I’m sure you are aware, the Affordable Care Act (ACA) is rolling full steam ahead in 2015.
If you are an merit shop contractor working on prevailing wage projects for the federal, state or municipal government and you pay fringe dollars in payroll, you may be missing a great opportunity to leverage those fringe dollars to offset the effects of the ACA.
When you move fringes dollars out of wages and into The DirectAdvisors Trust you not only save money on payroll taxes and premiums (typically 20%-30%) but you can utilize those dollars to pay for employee medical insurance and other benefits.
Fringes paid to the DirectAdvisors Trust and then utilized to provide medical coverage are considered employer-funded benefits and, therefore, meet the “affordability” requirement of the ACA.
If you have additional questions please do not hesitate to contact us or download our whitepapers – “Harnessing the Power of Supplemental Unemployment Benefit Plans” and “Working the Fringe.”
Please also view our short animated video, to see how constructing a bona fide fringe benefit plan, can move prevailing wage dollars out of payroll and reduce associated costs. Increase profits. Submit more competitive bids. Build employee loyalty.