Davis Bacon Act    Federal construction contracts in excess of $2000 are subject to the Davis-Bacon Act, which requires payment of local "prevailing wages" including the "anticipated cost of prevailing benefits." Generally, this is expressed as a per-hour wage and per-hour cash equivalent value of benefits, and is often based on a union scale. Prevailing wages are set by the U.S. Department of Labor and are included in the bid specifications of covered contracts.   Many contractors pay the fringe benefit portion of the prevailing wage as additional cash wages, believing it's the easiest way to comply with the law. DO NOT PAY FRINGE BENEFIT IN CASH! This costs you money! To see how we can save you money and win more jobs, view Fact Sheet of Savings.   U.S. Dept. Of Labor Davis-Bacon Act Compliance Assistance

Learn More  What is Fringe Benefit? A fringe benefit is a form of pay for the performance of services.   Any fringe provided is taxable and must be included in the recipient's pay. By providing your employee with The Contractors Plan you will save 25% on your payroll burden. Davis Bacon Act Service Contract Act State Prevailing Wage Fact Sheet of Savings Bona-Fide Benefits Limited Medical Plans Framework The Contractors Plan