Medical Coverage for Prevailing Wage Workers
Medical coverage for employees is a benefit you should consider as a competitive prevailing wage contractor. Providing employment benefits in the form of health plan services or an MEC medical plan can only boost your earnings and your investments in your own company.
In the past, many prevailing wage contractors were reluctant about using the fringe portion of the wage to provide employment benefits in the form of medical coverage. There was a misconception among prevailing wage contractors that employees would rather have dollars as additional cash wages or as other types of benefits, rather than as health plan services or as a MEC medical plan.
But given the current legal obligations, everyone is now required to have some form of health insurance. Employees now know that getting medical coverage is cheaper and easier pre-tax through an employer like you. There’s nothing holding you back from providing medical coverage as it’s becoming a more popular option.
3 Reasons Why Prevailing Wage Contractors Should Offer Medical Coverage
· Medical coverage can help you invest your money wiser.
The purpose of the fringe portion of the prevailing wage should be clear to any contractor. It’s meant to provide benefits such as health insurance and retirement plans, on top of the employee salary. With these fringe benefits, your employees are better protected. The benefits can make your employees feel more secure and productive.
By investing your money into your employees, you will also be reducing your payroll burden, and therefore reducing your taxes overall. You will be able to save costs in taxation, invest in your employees by giving them employment benefits and comply with the Affordable Care Act, all at the same time.
· Having medical coverage can keep you competitive.
More and more contractors are bidding on public works projects. At the same time, spending on projects has slowed, leading to rising competition. As a small company, there’s the challenge of competing with a larger competitor who is mandated to provide health insurance. These companies can submit bids that would show the payroll savings created when fringe portion is used to provide employee benefits such as an MEC medical plan.
Providing employment benefits in the form of medical coverage can give you an advantage when it comes to bidding.
· Medical coverage can qualify you for government contracts.
Proof of coverage, which testifies that a company offers minimum health insurance coverage to employees, is often required to qualify for government contracts. Municipalities such as Memphis, TN, and Athens, OH ask bidders to provide a proof of coverage. The same requirement might be asked for bigger public works projects.
It’s better to start offering medical coverage now, to ensure that you’ll be prepared whenever it becomes a requirement.
Contact a fringe benefit specialist to administer your employment benefits
ARCHER JORDAN can help you make sure that your health insurance coverage benefits your employees and your company. As a third party administrator providing fringe benefits to government contractors and hourly hires, ARCHER JORDAN has decades of experience in managing benefit plans in this field, and we’ll be happy to help you succeed. Contact ARCHER JORDAN today at +1 888-745-0754!