When the fringe portion of the prevailing wage goes into a bona fide benefit plan instead of cash wages, that amount escapes payroll costs like FICA, FUTA, SUTA, general liability and, in most states, workers compensation. See what that means for your bids.
25% prevailing wage ≈ 520 hours · 50% ≈ 1,040 · 75% ≈ 1,500 · 100% ≈ 2,080 hours
Typical elements
FICA 7.65% · FUTA 0.80% · SUTA ~1.40%* · Workers compensation ~20%*
* varies widely from state to state
Annual fringe into a bona fide benefit plan
$750,000
37,500 prevailing wage hours × $20.00 fringe
Savings per employee, per year
$7,500
Annual savings
$187,500
payroll burden avoided by paying the fringe as bona fide benefits instead of cash
Estimates are for illustration only. Actual savings depend on your state, workers compensation rates and plan design. Learn how the savings work, or request a personalized assessment.