This certified payroll fringe benefit calculator helps contractors meet Davis-Bacon and Related Acts (DBRA) prevailing-wage rules on federally funded projects. A prevailing wage has two parts: a base hourly rate and an hourly fringe benefit rate. You can satisfy the fringe portion with bona fide benefits, with cash added to the paycheck, or a mix. Enter the wage determination figures and your benefit contributions below to see exactly how much cash fringe you must add to comply, and what to report on Form WH-347.
On Davis-Bacon jobs, the wage determination lists a basic hourly rate and a separate fringe benefit amount for each labor classification. You must pay at least the total — base plus fringe — but you have flexibility in how you deliver the fringe:
| Method | How it counts |
|---|---|
| Bona fide benefits | Employer contributions to health, pension, vacation, apprenticeship, etc., converted to an hourly value |
| Cash in lieu | The fringe is added to the paycheck as taxable wages |
| Combination | Benefits cover part of the fringe; cash makes up the shortfall |
The calculator computes the cash shortfall: required fringe minus the hourly value of bona fide benefits you already provide. If your benefits meet or exceed the fringe rate, no cash is owed.
A wage determination lists a carpenter at $32.00 base + $12.50 fringe. The contractor provides health insurance and a retirement match worth $6.50/hour. For a 40-hour week:
On Form WH-347, you report the cash wage ($38.00) and the fringe paid into plans, demonstrating the full $44.50 total prevailing wage was met.
A key cost difference: when you pay fringe as cash in lieu, that amount is taxable wages, so it is also subject to employer FICA (7.65%), FUTA, SUTA, and workers’ comp premium (which is rated on payroll). When you fund bona fide benefits instead, those contributions are generally not wages, so they avoid the extra payroll-tax load. On a large prevailing-wage crew, shifting fringe from cash to a qualified plan can save the employer 10%+ on the fringe dollars. Use our fully burdened labor rate calculator to quantify that load.
Overtime is calculated on the base rate only, not on the fringe. Under the Contract Work Hours and Safety Standards Act, hours over 40 are paid at 1.5 × the basic rate, and the fringe is added at straight value for all hours. For our carpenter at $32.00 base + $12.50 fringe working 45 hours:
The fringe is not multiplied by 1.5 — a common certified-payroll error that either overpays or, if you base OT on the total wage, complicates your WH-347.
Contractors on most federally funded construction submit a weekly certified payroll report on Form WH-347, signed under a Statement of Compliance. It lists each worker’s classification, hours, rate, gross, deductions, and net, plus whether fringe is paid in cash or to approved plans. Keep records for at least three years. Underpaying prevailing wage — or failing to add the cash fringe shown above — can lead to withheld contract payments, back-wage liability, and debarment from federal work.
Take the fringe rate from the wage determination and subtract the hourly value of the bona fide benefits you already provide. The remainder is the cash fringe you must add to the paycheck. If a job pays $12.50 fringe and your benefits are worth $6.50/hour, you owe $6.00/hour in cash, paid as taxable wages.
Yes. You may satisfy the fringe obligation entirely in cash, entirely through bona fide benefit-plan contributions, or a combination. Cash fringe is added to the paycheck as taxable wages and is subject to employer payroll taxes; bona fide benefit contributions generally are not wages.
Overtime is paid at 1.5 times the basic hourly rate only; the fringe benefit is added at its straight-time value for all hours worked and is not multiplied by 1.5. Calculating OT on the combined base-plus-fringe figure is a frequent certified-payroll mistake.
Form WH-347 is the U.S. Department of Labor's weekly certified payroll report for federally funded construction. It lists each worker's classification, hours, rates, gross pay, deductions, and how the fringe is paid, and is signed under a Statement of Compliance. Use of the exact form is optional, but the same information must be reported.
Yes. Because qualifying benefit contributions (health, retirement, approved apprenticeship, etc.) generally are not taxable wages, they avoid employer FICA, FUTA, SUTA, and workers' comp premium that cash fringe would incur. Shifting fringe from cash to a qualified plan reduces the employer's burden on those dollars.