How do we calculate the fringe benefit portion of the prevailing wage?
Fringe benefits may be paid by (a) cash, (b) an irrevocable contribution to a trustee or a third person under a fund, plan or program, or (c) an enforceable commitment to carry out a financially responsible plan or program that has been communicated in writing to the affected employees, or any combination thereof. In cases (b) and (c), the hourly fringe benefit equivalent is computed by dividing the amount of the contribution (e.g., quarterly) or the cost of providing the benefit (e.g., annual) by the total hours (both Davis-Bacon and other) worked by the employee during the relevant period. If that equivalent falls short of the prevailing hourly fringe benefit rate, the employer must make up the difference in cash.
