Payroll Tip: Know Your Fringe Benefit Rules

by Alex Gray
August 17, 2016
Read Time: Less than 2 Mins
Last Modified: April 27, 2024

Know Your Fringe Benefit Rules

Union and prevailing wage payrolls give you a lot to keep track of — between rates for multiple trades and multiple rates for benefit types — but make sure too that those rates aren’t all calculating the same. Some fringes are subject to overtime, while some are calculated by percentage; some are pre-tax, and some are subject to FICA. Not knowing the rules for calculating these benefits accurately can cost you one way or the other.

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If we overpay on our taxes, the IRS is good about giving us a refund, but if you overpay on union or Davis-Bacon fringes, you might as well consider it a donation — without the write-off. That overage isn’t coming back to your company account.

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