If your company provides bona fide fringe benefits (like health insurance, pension, supplemental unemployment, etc.) on behalf of its workers, you can take credit for the value of those benefits on weekly certified payroll forms like the WH-347. To do so, you’ll need to convert the monthly benefit amount into an hourly rate and enter it in the “Fringe Benefits” column. Below is an example of how a company can report its monthly health insurance contributions as an hourly fringe benefit:
Example
- Monthly health premium paid by employer: $420.11
- Estimated hours worked per week by employee: 40 hours per week
Step-by-Step Calculation
- Convert monthly to annual: $420.11/Month × 12 Months/Year = $5,041.32 per year
- Convert annual to weekly: $5,041.32/Year ÷ 52 Weeks/Year = $96.95 per week
- Convert weekly to hourly (based on estimated 40-hour week): $96.95/Week ÷ 40 Hours/Week = $2.42/hour
The $2.42/hour represents the hourly credit for the employer-paid health insurance, and should be entered in the worker’s profile under the ‘Benefit’ section in Kaster as their hourly fringe benefit credit.
⚠️ Important Notes:
- If you overestimate hours (e.g., assume 40 when the worker regularly works 50), you might over-credit the fringe, which is a Davis-Bacon compliance issue.
- If you’re unsure, you can use a rolling average or estimate based on past payroll data.