XL EagleFringe (Fringe Benefits)
Fringe stands for Fringe Benefits. Fringe benefits are the costs that come with each employee beyond their base wage. They include payroll taxes, workers comp, health insurance, paid time off and retirement contributions.
Fringe is often shown as a percent of direct wages. On jobs covered by federal service or construction wage rules, required health and welfare and vacation payments must be included.
Why it matters to a small contractor
On many service contracts, the wage determination sets a minimum health and welfare amount per hour. Leaving it out of your price is a costly and common mistake.
Example
A crew member earns $20 per hour. Taxes, insurance, leave and the required health and welfare add $7, so fringe is 35 percent.
Fringe: common questions
Is fringe part of overhead?
Usually it is tracked as its own pool, separate from overhead, but some small firms combine them.
Where do I find required fringe on service contracts?
In the wage determination attached to the solicitation.
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