Question 1

How do I calculate fringe benefits for prevailing wage?

Accepted Answer

Start with the fringe rate on your project's wage determination (e.g. "$25.50 base + $8.75 fringe"). Add up what you actually contribute per hour to bona fide benefit plans — health insurance, pension, vacation, apprenticeship funds. That total is your fringe credit. If the credit covers the wage determination's fringe rate, you pay the base rate in cash. If it falls short, you owe the difference as additional cash on the paycheck (cash in lieu of fringe). This calculator does that math and shows the worksheet.

Question 2

How do I calculate fringe benefits for certified payroll?

Accepted Answer

The same fringe credit math drives your certified payroll report. On the WH-347, column 6B shows the fringe amount paid into plans per hour, and column 6C shows any cash paid in lieu of fringe. On page 2, check box 4(a) if fringe went to approved plans, 4(b) if you paid it in cash, or both with an explanation for a split. Run your numbers in the calculator above, and the shortfall line is exactly what belongs in column 6C each week.

Question 3

What counts as a bona fide fringe benefit?

Accepted Answer

Under 29 CFR 5.29, bona fide fringe benefits include health and life insurance, pension or retirement contributions, vacation and holiday pay, and apprenticeship training funds — paid to a third-party plan, fund, or program. Payments required by law (employer FICA, workers comp, unemployment insurance) do NOT count as fringe benefits; they're payroll taxes you owe regardless.

Question 4

Can I just pay the fringe amount as cash instead of benefits?

Accepted Answer

Yes. The Davis-Bacon Act lets you satisfy the fringe obligation entirely in cash wages (WH-347 page 2, box 4(b)), entirely through bona fide plans (box 4(a)), or any combination. Cash in lieu of fringe is reported in column 6C of the WH-347. The only thing you can't do is pay less than base + fringe in total.

Question 5

How do I convert a monthly insurance premium into an hourly credit?

Accepted Answer

Divide the employer's monthly contribution by the hours the employee works in a month (about 173 hours for a full-time, 40-hour-a-week worker). Important: under DOL annualization principles, contributions for benefits like health insurance generally must be spread across ALL hours an employee works in the year — including private, non-prevailing-wage jobs — not just the government project hours. If your crew splits time between covered and private work, dividing by covered hours only will overstate your credit.

Question 6

What if my wage determination lists $0.00 fringe?

Accepted Answer

Some classifications genuinely carry a $0.00 fringe rate on the wage determination (common in conformed or survey-based classifications). In that case there is no fringe obligation — you owe the base rate, and your certified payroll should reflect actual fringe of zero rather than inventing a number.

Question 7

Does the fringe rate get multiplied for overtime hours?

Accepted Answer

No. Under the Contract Work Hours and Safety Standards Act, overtime is one and one half times the BASE hourly rate; the fringe amount stays at the straight rate for every hour, including overtime hours. Paying 1.5x on (base + fringe) overpays; paying 1.5x on base but skipping fringe on OT hours underpays. Two caveats: if you actually pay a higher hourly rate than the wage determination's base, overtime is owed on that higher actual rate, and some state prevailing wage laws calculate overtime differently.

Required total rate (base + fringe)	$39.50/hr
Monthly plan contributions	$570.00/mo
÷ 173 hours =	$3.29/hr
+ hourly contributions	$0.00/hr
Your fringe credit	$3.29/hr
Wage determination fringe	$9.50/hr
Shortfall → cash in lieu of fringe (WH-347 col. 6C)	$6.21/hr
Minimum cash paycheck rate	$36.21/hr
Overtime total compensation (1.5× base + fringe at straight rate)	$54.50/hr

Prevailing Wage Fringe Benefit Calculator

The Davis-Bacon fringe benefit calculation worksheet, explained

Fringe benefit calculation FAQ

Tired of doing this math for every worker, every week?