Prevailing Wage Fringe Calculator
Split a prevailing wage into base and fringe, and find the cash fringe you owe when the benefits you provide fall short of the required rate.
How it works
Cash fringe = max(0, required fringe − fringe provided) · Total hourly = base + fringe provided + cash fringe · Prevailing wage = base + required fringe
On public works covered by the Davis-Bacon Act and state prevailing-wage laws, the required wage is split into a base hourly rate and a fringe benefit rate. Employers can satisfy the fringe portion with bona fide benefits (health insurance, pension, apprenticeship), by paying it as cash, or a mix — but any shortfall between the benefits provided and the required fringe must be made up in cash on the paycheck.
Worked example
A determination requires $30 base + $12 fringe = $42/hour. If you provide $5/hour of benefits, you owe the remaining $7/hour as cash fringe, so total compensation is $30 + $5 + $7 = $42/hour, matching the prevailing wage.
Frequently asked questions
What counts as a bona fide fringe benefit?
Employer contributions to health insurance, retirement or pension plans, life and disability insurance, and approved apprenticeship programs generally count. The value must be a genuine, irrevocable contribution, not wages relabeled as benefits.
Can I just pay the whole fringe as cash?
Yes. Employers may discharge the entire fringe obligation in cash added to the hourly wage. Many do the opposite — funding benefits reduces payroll taxes on the fringe portion — but paying cash always satisfies the requirement.
Does the fringe rate get overtime?
Overtime is generally calculated on the base hourly rate, not the fringe. Bona fide fringe benefit contributions are typically excluded from the regular rate used for overtime, though cash paid in lieu of fringes can be treated differently — confirm the specific determination.
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Educational payroll estimate, not tax, payroll or legal advice. Rules and rates vary by jurisdiction and employer — confirm with your payroll department.