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Prevailing-wage fringe · Contractor side
Get the fringe right: computed, credited, and documented.
The fringe half of prevailing wage is where contractors quietly lose money and fail audits: a miscomputed annualization, an undocumented cash-in-lieu payment, a benefit plan that isn’t “bona fide” on paper. We compute the fringe you owe, credit what you already pay, certify cash-in-lieu, review your plan documentation, and build the audit file, so the wage determination is satisfied and the record holds. We do the compliance and the math; we never touch your fringe dollars or administer a plan.
Why it matters
The fringe is the part of prevailing wage that is hardest to get right: annualization, the credit rules, and the bona-fide-plan tests. And it is exactly where DIR and DOL audits and awarding-body findings land. An hourly fringe credited wrong, or a plan that can’t be shown to be funded and bona fide, turns into a withheld payment or a restitution order. Getting the credit and the documentation right the first time costs a fraction of either.
How we do the work
Method
Compute and annualize the required fringe
The hourly fringe owed under the governing determination, annualized to a true hourly credit where the rules require it (29 CFR 5.25; California Labor Code §1773.1, including the AB 889 annualization), the math shown, not asserted.
Credit what you already pay
Cash paid directly and contributions to a bona-fide plan, credited against the fringe obligation so you get every dollar of credit you’re entitled to and no more.
Certify cash-in-lieu
Where you discharge the fringe by paying cash directly to the worker, the hourly cash-equivalent computed and certified so the payment is documented as compliant (29 CFR 5.31).
Review your plan documentation
Your existing benefit plan checked against the bona-fide-plan criteria: written, funded (or an approved unfunded arrangement), definite formula (29 CFR 5.28/5.29). A paper compliance review of a plan someone else administers, not plan design.
Build the audit-ready fringe file
A dated, sourced record cross-referencing the wage determination against what you paid or contributed, ready for a DIR, DOL, or awarding-body request before it’s made.
$650 flat, per contractor per project, for a full fringe-credit & annualization analysis with cash-in-lieu certification and the audit-ready file. Included at no separate charge in the certified payroll review retainer and the Fractional Compliance Officer bundle. Configure this service and see your estimate in the engagement builder.
Pricing & scopeQuestions contractors ask
Common questions
Do you hold or administer our fringe money?
No. We compute, credit, and document; the money moves from you directly to your workers or to your plan’s own licensed administrator or trust, never through us. Designing or administering a benefit plan or trust, holding contributions, or paying claims requires a license we do not hold, and we do not do it.
Can you tell us whether to pay cash or fund a plan?
We can lay out the lawful options (cash in lieu, a funded bona-fide plan, or a combination) and show the compliance cost of each, so you can decide. The decision itself, the plan, and any insurance or investment product stay with you and your own licensed broker or administrator. We do compliance analysis, not product placement.
How is this different from the certified payroll review?
It is the fringe-specific deep cut. Fringe substantiation is already included in the certified payroll review retainer and the Fractional Compliance Officer bundle. This is the standalone analysis for a contractor who wants the fringe credit and annualization done right on its own, for example before setting up or changing a plan, or ahead of an audit.
Will this hold up in a DIR or DOL audit?
That is the point of the deliverable: a dated, sourced fringe file that cross-references the governing wage determination against what you actually paid or contributed, with the annualization math and the statutory basis shown line by line.
Aeternus Dynamics uses AI-assisted tools to help prepare and check compliance documents; all deliverables are reviewed by a qualified human before submission or use. Aeternus Dynamics is not a law firm and does not provide legal advice. See our Terms & Disclosures.
Get the fringe checked
Tell us the project and the wage determination, and whether you pay cash, fund a plan, or both; we’ll compute the credit, certify what needs certifying, and build the file.
Email hello@aeternusdynamics.com