What types of fringe benefits may a company take credit for, towards the Prevailing Wage fringe benefit rate?
A. A company may take credit for the actual cost of providing their employees certain fringe benefits, such as: Medical/Hospitalization coverage, Dental coverage, Pension or Retirement plan, Paid Time Off (vacation, holidays, sick days), or Life Insurance. To calculate the cost per hour, divide the annual cost of the benefits by 2,000 hours, for each employee. This amount should be entered in the column labeled “Total Fringe Benefit Cost / Hr.” on the Certified Payroll Form, for each employee. Items such as use of company vehicles or cell phones, lodging reimbursement, or company-provided tools may not be credited towards the Prevailing Wage. Under no circumstances may statutory deductions (Unemployment Insurance, Income Tax, etc.), Workers’ Compensation Insurance, or the portion of any fringe benefit that is deducted from the employee’s pay, be credited towards the Prevailing Wage. Q.
Related Questions
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