Tax Planning & Profit Sharing
As we near tax season, it may have you looking ahead for unique tax planning and savings strategies for many of your construction clients for the year to come. Did you know that the Beneco Prevailing Wage 401(k) plan is uniquely designed to help your construction clients boost their retirements, help with their employee retention, AND offset profit-sharing contributions?
Contractors who work on prevailing wage projects must pay their employees a wage that includes fringe benefits when working on those projects. The fringe benefits amount can be paid as cash wages or used to fund approved benefits programs. How does this help during tax season? Along with significant labor savings on payroll taxes and insurance premiums, utilizing fringe dollars for retirement benefits can also offset profit-sharing contributions!
With proper plan design, contractors can make significant profit-sharing contributions for owners and highly compensated employees with minimal or even zero contributions required for the non-highly compensated employees.
Companies can use these strategies to reward and retain key employees, office staff, and executives at a much lower cost than non-prevailing wage contractors.
How do these tax planning strategies help? profit sharing
 |
Reduce Taxes Companies can reduce corporate taxes by making profit-sharing contributions to their 401k plan. |
 |
Maximize Contributions Contractors can utilize fringe dollars in plan testing to maximize contributions to owners and highly compensated employees. |
 |
Retain Employees Contractors can use profit sharing as a retention strategy for key employees and executives. |
Learn more about partnering with Beneco and learn how we can help your current or future clients be more profitable and grow their businesses.
|
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.