Annualization of Fringe Benefits – How to Calculate with Examples

Annualization of Fringe Benefits – How to Calculate with Examples

Annualization is one of the most commonly misunderstood concepts in the Davis Bacon Act (DBA), Service Contract Act (SCA) and state laws. However, knowledge about how annualization works, and how it affects contractors’ financial obligations for bona fide benefit...
What Qualifies as a Bona Fide Fringe Benefit

What Qualifies as a Bona Fide Fringe Benefit

What is a Bona Fide Fringe Benefit Merriam-Webster defines bona fide as: Made in good faith without fraud or deceit; Made with earnest intent: sincere  Neither specious or counterfeit: genuine.           The Davis Bacon Act (DBA) prevailing wage rate is made up of two...
How to Calculate Annualization

How to Calculate Annualization

As stated in the U.S. Department of Labor Prevailing Wage Resource book, “Annualization is a computational method used to determine the hourly rate of benefit plan contributions that are creditable towards a contractors’ prevailing wage fringe benefit obligation on covered projects.”

Case Study – An Easy Win-Win for Employer and Employees

Case Study – An Easy Win-Win for Employer and Employees

In New York, the prevailing wage and fringe benefit rate must be paid on all public work hours. Contractors may satisfy the fringe benefit portion of the prevailing wage by either paying the prevailing benefit rate as additional cash wages, or by providing bona fide benefits that at least equal the rate.