How the Math Works
Example: one operator at $40.00 basic and $20.00 fringe into plans, 10-hour days, 5 days, federal weekly rule. Hours: 40 straight, 10 overtime. Straight wages 50 x $40 = $2,000. Premium 0.5 x $40 x 10 = $200. Fringe 50 x $20 = $1,000. Taxes at 11.25% on $2,200 = $247.50. Comp at $8.00 per $100 on $2,000 = $160. GL and other at 2.5% on $2,200 = $55. Tools at 2% = $40. Week: $3,702.50, or $74.05 per hour. The same operator on a daily-over-8 rule works 40 straight and 10 overtime, so the number is identical; it changes when days run past 8 hours but the week stays under 40.
Rules Built Into the Calculator
- Overtime on basic only (federal). On covered contracts, the Contract Work Hours and Safety Standards Act requires 1.5 times the basic hourly rate for hours over 40 in a workweek. The fringe on the wage determination is owed on every hour at the same amount; it is not multiplied.
- Daily overtime (state). Nevada public works, California, Alaska, and some other states add daily overtime, and some agencies allow 4x10 schedules with overtime after 10. Pick the rule that matches the contract. The daily and weekly rules do not stack on the same hour.
- One total rate (Nevada). Nevada publishes a single prevailing rate per classification with no separate fringe line, and overtime is figured on that whole rate. Choose "basic plus fringe" as the premium base and put the full rate in the basic column.
- Utah. Utah has no state prevailing wage law. Prevailing wage applies in Utah only where federal money or a federal contract brings Davis-Bacon with it. Use the federal weekly rule there unless the contract says otherwise.
- Cash fringe is wages. Fringe paid on the check carries FICA, unemployment, and usually comp. Fringe paid into bona fide plans does not. Paying into plans is cheaper for the same wage determination rate.
- Classification by work performed. A laborer who runs a roller for three hours is paid the operator rate for those hours. Split the crew the way the work will really be done, not by job title.
- Same production, higher cost. Prevailing wage changes the cost per hour, not how many yards a crew moves. Use the production line to see the labor cost per unit and carry that into the unit price.
- Both laws can apply. On a federally funded state or local project, the higher rate for each classification governs and both sets of paperwork are required.
For the full list of what to check before pricing a prevailing wage job, download the prevailing wage bid checklist. For where each state publishes its rates, see prevailing wage by state.
Common Questions
Is overtime paid on fringe benefits under Davis-Bacon?
No. Where overtime is required on covered contracts, it is 1.5 times the basic hourly rate. The fringe amount is paid on every hour worked, including overtime hours, but at the same straight-time amount. Some state laws differ, which is why the calculator lets you choose the premium base.
Do I pay payroll taxes on fringe?
Only on fringe paid in cash on the paycheck. Contributions to bona fide health, pension, and training plans are not wages for FICA and unemployment purposes. The calculator treats the two columns differently for that reason.
What workers comp rate do I use?
The rate per $100 of payroll for the class code on your policy, by classification. Excavation, pipe, and paving classes carry different rates. Many carriers exclude the premium portion of overtime from comp payroll; the checkbox lets you match your policy.
Does the calculator cover every state?
The math covers every state because the inputs are the rates from your wage determination and the overtime rule in your contract. What it does not do is look up the rates for you; those change by county and date. Pull them from SAM.gov or the state agency listed in the state guide, then enter them here.
How do I get a cost per cubic yard?
Enter your crew's daily production in the production field (for example, 1,200 CY per day). The calculator divides the daily crew cost by that production and shows labor per unit. Add equipment, trucking, and materials to get the full unit cost.