Construction companies continue to find themselves embroiled in a protracted battle for skilled labor. One fundamental way to recruit the best talent and retain valued employees is by offering competitive compensation and benefits. Let's focus on the latter, which may also help lower your tax bill.
The term "benefits package" is widely used for a reason. One or two perks generally aren't going to get the job done these days. Here are some of the most popular employee benefits to consider:
Although they don't necessarily generate tax breaks, other types of benefits may help your construction company lower payroll costs.
For instance, flexible work arrangements — such as telecommuting, part-time work or job-sharing — can cut payroll and overhead costs by decreasing the time certain types of employees spend on the clock. Restructuring some jobs into part-time and job-sharing positions also may ease the financial burden of providing an extensive benefits package, which you can reserve for full-time employees.
Unlimited paid time off (PTO) is another enticing employee recruitment tool that may save your construction business time and money. Under this policy, employees can take as much time off as they want or need as long as it doesn't interfere with their ability to fulfill their job duties. In turn, PTO administration becomes much simpler and job satisfaction tends to rise.
Setting clear guidance on how and when to request time off helps prevent abuse of unlimited PTO policies. In fact, employers often find it helpful to mandate a minimum number of days off annually to help employees nervous about taking too much PTO. (Note: There may be state and local laws that address unlimited PTO.)
Creating a strong benefits package has become a competitive necessity for most construction businesses. But that doesn't mean you have to throw caution to the wind and offer everything under the sun. Our firm can help you choose benefits that suit your company's size and budget and then assist you in claiming tax deductions for them.
Get in touch today and find out how we can help you meet your objectives.