How can providing benefits be free to my company and employees yet save my company money?
Health and Welfare allocations in government contracts are earmarked for actual benefits and are designated to provide “bona fide” benefits at no expense to your company or employees. When Health and Welfare dollars are paid to bona fide” benefit plans, you provide valuable benefits entirely at the government’s expense. Since such payments are made on a before-tax basis and are not part of your company’s payroll, you legally avoid wasting thousands of dollars in unnecessary payroll related taxes and expenses.
