Free construction payroll calculator
Davis-Bacon Fringe Benefit Credit Calculator
Enter one worker and one labor classification for a federal prevailing wage job. Calculate an estimated hourly benefit credit and any additional cash needed. See how the figures relate to Form WH-347.
Before you start
Related reference: Read the WH-347 form guide Reference note reviewed
What to have ready Your wage determination, the worker's cash wage, employer benefit costs, total working hours for the benefit period, and this week's time records. This calculator estimates the straight-time prevailing wage difference and the eligible fringe benefit credit. Use your payroll records to confirm benefit eligibility and calculate overtime pay separately before completing certified payroll.
Enter the required rates and cash wage
This calculator covers federal Davis-Bacon prevailing wages. Enter all amounts in U.S. dollars. The figures shown are examples. Replace them with the rates and hours that apply to your worker.
Employer-paid benefits for this worker
Enter qualifying employer benefit costs for this worker. Most costs are divided by all hours worked during the benefit period. Apprenticeship training program costs use a different calculation and should not be entered here. Those costs are generally divided by hours worked by all employees in the program's classification. Workers' compensation, employer payroll taxes, per diem, and your own plan administration costs generally do not count.
Select the pension exception only for a defined contribution plan that meets the conditions described under How to calculate the hourly benefit credit. If a benefit's eligibility is uncertain, confirm it before including the amount in certified payroll.
Hours worked on this project this week
Estimated additional cash needed per covered hour
How the hourly estimate adds up
This week on Form WH-347
Column 6A shows the basic hourly cash wage actually paid, with separate straight-time and overtime rates. Column 6B shows the eligible benefit credit for the week's covered hours. Column 6C shows cash actually paid in place of fringe benefits. Review the overtime rate separately before completing column 6A.
See how the numbers are calculated
How to calculate the hourly benefit credit
A wage determination sets a basic hourly rate and any fringe benefit requirement for each labor classification. Together, they establish the straight-time prevailing wage. Covered overtime may require additional pay.
For example, a wage determination with a $27.00 basic hourly rate and a $14.00 fringe rate requires a straight-time total of $41.00 per hour. The Department of Labor gives three ways to meet that total: $41.00 in cash wages, $27.00 in cash wages and $14.00 in eligible benefits, or $35.00 in cash wages and $6.00 in eligible benefits. Other combinations can also meet the requirement (29 CFR 5.31 and U.S. Department of Labor Fact Sheet 66E).
Show the calculation
Convert benefit costs to an hourly credit
Divide the employer's eligible benefit cost by all hours worked during the same period, including public, private, and overtime hours (29 CFR 5.25(c)). For example, a qualifying health plan costs $6,240 for a worker who works 2,080 hours during the year. $6,240 ÷ 2,080 = $3.00 per hour. The calculator rounds each hourly credit down to the cent.
The pension exception
A defined contribution pension plan may qualify for an exception to annualization when it is not continuous in nature, does not compensate both Davis-Bacon covered and noncovered work, allows immediate participation, and provides vesting within the first 500 hours worked. A plan meeting all these conditions can use the exception without a separate request. Other plans may qualify only through the Department of Labor's approval process (29 CFR 5.25(c)(2) and (3)).
Costs to leave out
Count only qualifying employer benefit costs. Workers' compensation, employer payroll taxes, costs required by another law, and your own plan administration expenses do not count toward the fringe benefit credit. Make qualifying funded plan contributions at least quarterly. An unfunded benefit plan paid from company assets requires Department of Labor approval before its costs can be credited (29 CFR 5.28, 5.29, and 5.33).
Calculate any remaining amount
Add the basic cash wage, any cash paid in place of fringe benefits, and the eligible hourly benefit credit. Subtract that amount from the required straight-time prevailing wage. Any difference is covered by additional cash or eligible benefits. Calculate overtime premiums separately. Cash fringe payments do not replace the premium owed on the basic wage.
Use the wage determination included in your contract and confirm the applicable classification and any project-specific requirements. Calculations are based on U.S. Department of Labor Fact Sheet 66E, revised October 2023, 29 CFR part 5, and the Form WH-347 instructions. This page provides general information and estimates, not a determination of wages legally owed.