Davis-Bacon Fringe Benefit Credit Calculator

Compute annualized fringe credits, compliance shortfalls, and overtime according to 29 CFR 5.25 and 5.32.

Compensation Details

Wage Determination (WD) Requirements

The base rate required by the wage determination.
$
The fringe benefit rate required per hour.
$

Employer's Actual Compensation

The base cash rate paid to the employee for regular hours.
$ / hr
Total employer cost for bona fide fringe benefits over a year.
$ / yr
Total hours worked (DB and non-DB) over the year (typically 2080).
hrs

Pay Period Processing

hrs
hrs

Analysis & Results

Compliance Status PASS
Hourly Fringe Credit $0.00
Total Compensation Provided (Cash + Credit) $0.00
Required Total Compensation $0.00
Cash Shortfall (to add to base wage) $0.00

Pay Period Cash Calculation

Overtime computed on the regular base rate (min. WD Basic Rate), excluding fringe (29 CFR 5.32).
Effective Cash Wage (Base + Shortfall) $0.00
Overtime Cash Rate (Time-and-a-half) $0.00
Regular Pay (Cash) $0.00
Overtime Pay (Cash) $0.00
Total Pay Period Cash Wages $0.00

About the Davis-Bacon Fringe Benefit Credit Calculator

Federal construction contractors can easily verify compliance with prevailing wage requirements using this Davis-Bacon fringe benefit calculator. It accurately annualizes employer contributions to bona fide benefit plans, determining the hourly fringe credit applied against the required wage determination. Automating these calculations prevents costly underpayments and protects your business during Department of Labor payroll audits.

How it works

  1. Enter the required base hourly rate and fringe benefit rate from your applicable Davis-Bacon Wage Determination.
  2. Input the employee's actual hourly base pay rate for the specific job classification.
  3. Add employer contributions for health insurance, retirement, and other bona fide benefits on an annual, monthly, or weekly basis.
  4. Review the calculated hourly fringe credit to ensure total compensation meets or exceeds the required prevailing wage.

Frequently asked questions

What qualifies as a bona fide fringe benefit under Davis-Bacon?

Bona fide benefits typically include employer contributions to health insurance, life insurance, retirement plans (like 401k), and approved apprenticeship programs. Unfunded plans like paid time off may qualify if they meet specific Department of Labor criteria.

How is the hourly fringe credit calculated?

The credit is determined by annualizing the total employer benefit contribution and dividing it by the total hours the employee worked in a year on all projects (both prevailing wage and private work).

Can I pay the fringe benefit in cash instead of providing benefits?

Yes. If you do not provide bona fide benefits, you must pay the equivalent fringe benefit rate as additional cash wages on the employee's regular paycheck.

Do cash fringe benefits factor into overtime pay calculations?

No. Under the Fair Labor Standards Act, cash fringe payments strictly required by the Davis-Bacon Act are excluded from the regular rate of pay when calculating time-and-a-half overtime premiums.

References