Davis-Bacon fringe benefits: hourly credit, cash in lieu, package test
A wage determination sets two numbers per classification: the basic hourly rate and the fringe benefit rate. You can meet the fringe obligation three ways.
- Plan contributions — health, pension, vacation, apprenticeship training and similar bona fide plans. Convert them to an hourly credit and show it in column 6B; page 2, box 5 lists each plan and the credit per worker.
- Cash in lieu — pay the fringe as extra cash per hour (column 6C). It's taxable wages, so it belongs in gross pay.
- A mix — some plans plus cash for the rest.
The test
Base rate paid ≥ the basic rate, and base + plan credit + cash ≥ base + fringe from the wage determination. Overtime is 1.5× the basic rate; fringe isn't multiplied. Wagesheet runs both checks for every worker and shows the shortfall per hour and for the week.
Annualization
Plan credits for benefits that cover private work too (such as health insurance) generally have to be annualized — credit is based on all hours worked in the year, not only the Davis-Bacon hours. Work out the hourly credit with your benefits provider or accountant; Wagesheet uses the hourly credit you enter.
Last reviewed 2026-10-27. General information, not legal advice — your contract, wage determination and contracting agency decide what applies.