Field Service Management
QuickBooks
Software
Employee Time Tracking
Understanding Labor Laws
Field Service Management
QuickBooks
Software
Employee Time Tracking
Understanding Labor Laws

Ensure Labor Law Compliance With Workyard

How To Calculate Fringe Benefits for Prevailing Wage

To calculate fringe benefits for prevailing wage, multiply the prevailing wage rate by the specified fringe benefit percentage or contribution amount mandated by prevailing wage laws.

Understanding how to calculate fringe benefits for prevailing wage is essential for contractors and subcontractors working on public works projects. Here’s a straightforward guide on how to do it.

Determine Fringe Benefit Requirements

First, review the prevailing wage determination for the specific job classification and locality where the construction project is located. The prevailing wage determination will specify the fringe benefits required for each hour worked, either as a percentage of the hourly wage or as a fixed dollar amount.

Calculate Fringe Benefit Amount

Once you have the fringe benefit requirement from the prevailing wage determination, calculate the fringe benefit amount for each hour worked by the employee. If the fringe benefit is expressed as a percentage of the hourly wage, multiply the prevailing wage rate by the specified percentage to determine the fringe benefit amount. If the fringe benefit is a fixed dollar amount per hour, simply use the specified amount.

Add Fringe Benefits to Hourly Wage

After calculating the fringe benefit amount for each hour worked, add this amount to the hourly wage rate to determine the total prevailing wage rate. The total prevailing wage rate includes both the hourly wage and the fringe benefit component.

Maintain Detailed Records

Keep detailed records of fringe benefit calculations, including the prevailing wage determination, fringe benefit rates or amounts, and the total prevailing wage rates paid to employees. Accurate record-keeping is essential for demonstrating compliance with prevailing wage laws and regulations.

Ensure Compliance

Verify that the total prevailing wage rate, including both the hourly wage and fringe benefits, meets or exceeds the minimum requirements specified in the prevailing wage determination. Failure to comply with prevailing wage requirements may result in penalties, fines, or contract sanctions.

How To Calculate Fringe Benefits for Prevailing Wage

References

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