Wages And Payroll Taxes Hit Smaller Companies Hard
It is no surprise that smaller and start-up companies in the building industry try to keep staff as 1099 workers. The burden of carrying payroll taxes as well as benefits and is often crippling. But there comes a time where having employees is necessary, but that doesn’t stop you from wanting to save on pay roll taxes clovis ca.
Compliance is essential
All small business owners will tell y you must be 100% compliant to work government contracts but avoiding paying when you legitimately can makes sense.
This is a place where expert advice can make all of the difference between the success and failure of a start-up business. But the rules change from state to state and can be even more complicated when you work on government contracts.
A third party can help
Prevailing wage contracts are valuable for any small contractor you know you will be paid, you know it is prestigious and a job done well will lead to others inevitably.
Bringing in a third party can help you ensure that your business remains compliant while offering you ways in which you can bid competitively on a prevailing wage contract and not be crippled by the extras involved in paying employees.
Government funded contracts
When working on a government-funded project, contractors need to be paying pension and Health and Welfare on top of base wages. Then in addition in California, there is another sum for workers compensation.
The real problem is the fines and penalties levied when there is an error. No wonder some contractors decide not to bother.
Third party companies add value because their role is to stay up to date with local, state and Federal changes and then advise client companies on how to address them.