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Prevailing Wage Calculator: Davis-Bacon Fringe, OT, and Apprentice Rates

Calculate Total Prevailing Wage with Correct Fringe Handling on Overtime \u2014 Fringe Stays Flat, Only Base Gets 1.5x

Free prevailing wage calculator for government contractors, certified payroll clerks, and union estimators working Davis-Bacon or state prevailing wage jobs. Enter the base hourly rate and fringe benefit rate from the wage determination, and the calculator shows the correct OT rate where fringe stays flat at 1x while only the base rate gets the 1.5x overtime multiplier. Compare cash-in-lieu fringe vs bona fide benefits to see the actual cost difference.

The number one payroll mistake on prevailing wage jobs is multiplying the total rate by 1.5 for overtime instead of multiplying only the base. On a wage determination with $52/hr base and $24/hr fringe, the correct OT rate is $52 x 1.5 + $24 = $102/hr. The wrong calculation ($76 x 1.5 = $114) overpays by $12/hr. On a 20-person crew averaging 5 hours of OT each week over a 6-month project, that is roughly $31,000 in overpayment. This calculator also handles apprentice rates (typically 40% to 90% of journeyman rate by period) and annualized cost projections for estimating labor on bid day.

Pro Tip: When paying fringe as cash-in-lieu, the cash payment itself becomes taxable wages subject to FICA, FUTA, and workers comp. So a $24/hr fringe paid as benefits costs $24/hr. That same $24/hr paid as cash costs closer to $26.50/hr after employer payroll taxes. On large prevailing wage jobs, the tax delta between cash-in-lieu and bona fide benefits can exceed $50,000 over the life of the project. Always run both scenarios before deciding how to meet the fringe obligation.

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Davis-Bacon Prevailing Wage Calculator
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How It Works

  1. Enter Wage Determination Rates

    Input the base hourly rate and fringe benefit rate from the applicable Davis-Bacon or state wage determination. These are published per trade classification (electrician, plumber, laborer, etc.) and per county.

  2. Select Fringe Payment Method

    Choose whether fringe is paid as bona fide benefits (health insurance, pension, training fund) or as cash-in-lieu added to the paycheck. The calculator shows the employer's true cost for each option.

  3. Enter Hours Worked

    Input straight time and overtime hours. The calculator applies the OT multiplier only to the base rate and keeps fringe flat at 1x for all overtime hours.

  4. Add Apprentice Rates If Applicable

    For registered apprentices, enter the apprentice period and percentage of journeyman rate. Typical progressions are 40%, 50%, 60%, 70%, 80%, and 90% across training periods.

  5. Review Total Compensation Breakdown

    See the complete breakdown: base pay (ST and OT), fringe cost, payroll taxes on cash fringe, and total employer cost per hour and per week.

Built For

  • Certified payroll clerks preparing WH-347 forms for federal construction projects and verifying OT fringe calculations
  • Estimators pricing labor on prevailing wage bids with correct fringe handling to avoid underbidding or overbidding
  • Contractors deciding whether to provide fringe as benefits or cash-in-lieu and comparing the total cost impact
  • Apprentice coordinators calculating the correct wage rate for each apprentice period on a prevailing wage job
  • Compliance officers auditing subcontractor certified payroll for correct fringe treatment on overtime hours
  • Union business agents verifying that contractors are paying the full prevailing wage including fringe obligations

Features & Capabilities

Correct OT Fringe Handling

Applies the 1.5x multiplier only to the base rate. Fringe stays at 1x for all overtime hours per Davis-Bacon requirements. Prevents the most common prevailing wage payroll error.

Cash vs Benefits Comparison

Shows the true employer cost for paying fringe as cash-in-lieu (with added payroll tax burden) vs providing bona fide benefits. Helps contractors make informed fringe payment decisions.

Apprentice Rate Table

Calculates apprentice wages as a percentage of journeyman rate by period. Shows the correct base and fringe for each apprentice step.

Annualized Cost Projection

Projects total labor cost for the project duration including straight time, overtime, fringe, and payroll taxes. Essential for bid-day estimating.

PDF Export for Certified Payroll

Export calculations as a PDF reference for WH-347 preparation and payroll audit documentation.

Assumptions

  • OT multiplier (1.5x) applies only to the base hourly rate — fringe benefit portion stays at 1x for all hours per Davis-Bacon regulations.
  • Cash-in-lieu fringe payments are treated as taxable wages subject to FICA (7.65%), FUTA, and state payroll taxes.
  • Bona fide fringe benefits (health insurance, pension, training fund) are not subject to payroll taxes and cost the employer the face amount only.
  • Apprentice rates are expressed as a percentage of the journeyman base rate and applied per training period as defined by the registered program.
  • Wage determination rates are assumed current and applicable — the user must verify the correct determination for their project, trade, and location.

Limitations

  • Does not look up wage determinations automatically — the user must enter base and fringe rates from the applicable determination at sam.gov.
  • Does not handle split-classification workers who perform work in multiple wage determination categories during the same workweek.
  • Apprentice ratio compliance (maximum apprentice-to-journeyman ratio on the job) is not calculated — this must be verified against the registered program standards.
  • State prevailing wage laws may have different OT fringe treatment than federal Davis-Bacon — only the federal method is modeled.
  • Does not generate WH-347 certified payroll forms — the output is a calculation reference, not a compliance document.

References

  • Davis-Bacon Act (40 U.S.C. Sections 3141-3148) — federal prevailing wage requirements for government construction contracts.
  • DOL Wage and Hour Division — All Agency Memoranda (AAMs) on overtime fringe calculation for prevailing wage.
  • 29 CFR 5.32 — Overtime payments and fringe benefit calculation requirements under Davis-Bacon.
  • DOL Field Operations Handbook Chapter 15 — Davis-Bacon and Related Acts enforcement procedures.
  • sam.gov Wage Determinations — official source for federal prevailing wage rate schedules by county, trade, and construction type.

Frequently Asked Questions

Under Davis-Bacon rules, the overtime premium applies only to the basic hourly rate, not the fringe benefit component. The fringe obligation is a flat per-hour amount regardless of whether the hour is straight time or overtime. So if the wage determination says $50/hr base + $20/hr fringe, the straight-time rate is $70/hr and the OT rate is $50 x 1.5 + $20 = $95/hr. The fringe portion stays at $20 for every hour worked.
Contractors can satisfy the fringe benefit obligation by paying the fringe amount as additional cash wages instead of providing benefits. The fringe amount is simply added to the hourly pay. However, cash-in-lieu payments are treated as taxable wages, which means the employer owes additional FICA (7.65%), FUTA, and workers comp premiums on that amount. A $20/hr fringe paid as cash effectively costs the employer $21.50 to $23.00/hr after payroll taxes.
Registered apprentices may be paid a percentage of the journeyman prevailing wage rate based on their training period. Typical progressions start at 40-50% in the first period and increase to 80-90% by the final period. The apprentice must be registered with a DOL-approved program, and the ratio of apprentices to journeymen on the job must comply with the program standards (typically 1:3 or 1:5). Apprentice fringe rates may also be reduced per the wage determination.
Federal Davis-Bacon wage determinations are published at sam.gov (formerly wdol.gov). Search by state, county, and type of construction (building, heavy, highway, residential). State prevailing wage determinations are published by each state's department of labor. Wage determinations are updated periodically and the applicable determination is typically the one in effect when the contract is awarded, though some contracts require updated rates for multi-year projects.
Underpaying prevailing wages can result in back pay liability for the full difference plus interest, withholding of contract payments, contract termination, debarment from future federal contracts for up to 3 years, and potential criminal penalties for willful violations. The DOL Wage and Hour Division investigates complaints and conducts routine audits. Certified payroll records (WH-347) must be submitted weekly and are subject to review at any time.
Federal Davis-Bacon applies to federally funded or assisted construction contracts over $2,000. About 30 states have their own prevailing wage laws (sometimes called "little Davis-Bacon" laws) that apply to state-funded construction above varying thresholds. Some states have repealed their prevailing wage laws. Municipal projects may be subject to federal, state, or local prevailing wage requirements depending on funding sources.
Disclaimer: Prevailing wage calculations are for estimation and payroll verification purposes. Always refer to the specific wage determination for your project, trade, and location. Davis-Bacon compliance questions should be directed to the DOL Wage and Hour Division or a qualified labor law attorney.

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