Cash Fringe on Prevailing Wage Costs More Than Bona Fide Benefits
On prevailing wage work, cash supplemental benefits add employer FICA, workers' comp, and general liability. Bona fide DOL-approved benefits usually do not.
Cash vs benefits
How much of the supplemental benefit is paid as cash.
At this mix, $28.00 an hour is cash and $0.00 an hour is bona fide benefits.
- Extra cost at this mix
- $55,037
- Saved vs all cash
- $0
- If 100% cash
- $55,037
Compared with all bona fide benefits.
By moving off 100% cash.
Extra cost if every supplemental dollar is cash.
Rounded to the nearest dollar.
Where the extra cost comes from
- Extra FICA$30,845
- Extra workers' comp$16,128
- Extra general liability$8,064
Employer FICA, workers' comp, and general liability percentages apply to cash wages, including cash supplemental benefits. They do not apply to bona fide DOL-approved fringe benefits.
Your numbers
1,800 hours per employee, for the Social Security wage base.
Percent of gross wages.
Same cash-wage base when this is rated on gross wages.
Employer FICA match
7.65%
6.2% Social Security + 1.45% Medicare. Not editable.
Download the one-page PDF
Your name and company print on the page. Phone is optional.
Illustration only. Rate & Fringe does not sell benefit plans. This is not tax, legal, or benefits advice. Talk with a licensed benefits professional, your broker, and your payroll provider.
Questions about your jobs? Book a call.