Fringe Benefits for Government Contractors
Government contractors must meet fringe rate obligations, and many pay these dollars in cash —an expensive approach that increases costs and reduces competitiveness. Offering benefits instead lowers payroll expenses and workers' comp rates, making contractors more competitive in bidding.
Key Benefits:
1. Lower Labor Costs: Reduces expenses on existing contracts.
2. Maximized Profit Margins: Critical for tight-bid projects.
3. Stronger Bids: In LPTA contracts, even small payroll savings can be the difference between winning and losing.
Optimizing fringe benefits enhances financial performance and improves contract success rates.