Fringe benefits and overtime on certified payroll

The prevailing wage for a classification consists of a basic hourly rate plus any fringe amount on the determination. The Department of Labor’s own example is $34.00 basic plus $21.00 fringe, a $55.00 total per hour. It can be met entirely in cash, with bona fide plan contributions or with a mix.

Cash above the basic rate can count toward fringe. Plan credit above the listed fringe can count toward basic.

Each classification stands on its own. Do not offset a shortfall on one classification with a higher package for hours in another classification. When a worker does two kinds of work, separate those hours on the report. If classification hours were not tracked, all hours must be paid at the highest applicable rate.

Column 6B is the total fringe-benefit credit for the row: total hours multiplied by the hourly credit shown on page 2. The page 2 fringe table identifies the worker by entry number and name in page 1 order. It identifies each plan’s name, type, number and whether it is funded or unfunded.

The table then shows the hourly credit per worker per plan and the worker’s total hourly fringe cost. Credit for an unfunded plan needs prior Department of Labor approval. A plan name alone does not explain the dollar credit: the hourly amount matters too.

Page 2 shows the $14.20 hourly plan credit. Keep the $568.00 plan contribution separate from project cash gross.

Column 6C is total hours multiplied by the hourly cash paid instead of fringe. Cash in lieu is not included in the basic hourly rate in 6A. It does go into the gross cash earned on the project in 7A.

If fringe is paid only in cash, check the fringe box on page 2 and leave the plan table blank. The cash appears in 6C. If part goes to plans and part is paid in cash, report both: plan information and hourly credit on page 2, weekly plan credit in 6B and weekly cash in 6C.

For the $34.00 plus $21.00 example with $44.00 cash and $11.00 plan contributions, the illustration treats $34.00 as basic cash wages and $10.00 as cash fringe. The $11.00 plan amount remains a plan credit. Keeping the pieces separate makes the form explain the same $55.00 package without counting any part twice.

The extra half-time overtime premium is calculated on the basic hourly rate only, not fringe benefits. Fringe is still owed for every hour worked, including overtime hours. On contracts covered by the Contract Work Hours and Safety Standards Act, hours over 40 in the week are overtime, including work off site.

Use the calculator to see how the hourly package becomes weekly report figures. Enter the determination’s basic and fringe rates, hourly cash wage paid, hourly plan contribution and separate straight-time and overtime hours.

For this illustration, cash above the determination’s basic rate is allocated to cash in lieu of fringe. The minimum overtime rate shown is 1.5 times that determination basic rate. Straight-time pay uses the cash amount up to basic; overtime pay uses the displayed minimum. Fringe totals apply to all entered hours.

Check apprenticeship rates, plan eligibility and submission requirements separately. The hourly total check compares the cash-plus-plan package to the determination package. Check the result against your contract, the work classification and your actual payroll.

An apprentice may be paid below the journeyworker rate only when individually registered in an approved program. The program sets the percentage of the journeyworker rate and the progression. Fringe follows the program; if the program is silent, the full listed fringe applies.

The program also sets apprentice-to-journeyworker ratios. Workers beyond the permitted ratio must receive the full rate for the work performed. An RA designation and progression belong in column 2, with program name, OA or SAA registration and classification on page 2. Check the worker’s registration before using an apprentice rate.

1. Putting cash fringe in 6A. Keep basic wages in 6A and cash in lieu in 6C.
2. Multiplying fringe by time and a half. The extra overtime premium applies to basic only; fringe still applies on every hour.
3. Reporting only an hourly credit in 6B. Page 2 explains hourly plan credits; 6B needs the weekly total.
4. Leaving overtime hours out of fringe. Multiply the fringe credit or cash amount by total hours, not just straight time.
5. Combining classifications to hide a shortfall. Each hour must receive the full applicable package for its classification. Keep classification hours distinct and repeat the worker entry number on additional rows. Review gross separately from plan credit so the cash payment and benefits are not counted twice.