Prevailing wage laws require that employees receive a total package of wages and benefits that meets or exceeds a published minimum. If your company pays for benefits (like health or retirement) on behalf of an employee, those costs can count as a fringe credit and reduce the fringe amount owed on a certified payroll.
✅ What Is a Fringe Credit?
Fringe credits are employer-paid contributions for bona fide benefits such as:
- Health insurance
- Retirement plans
- Life or disability insurance
To count as a fringe credit, a benefit must be paid by the employer, recurring, and measurable per employee.
🧮 How TradeSeal Applies Fringe Credits
TradeSeal compares the required fringe rate (defined in your prevailing wage benefit rules) with the actual fringe credits assigned to the employee. If the credit is less than the required amount, TradeSeal automatically includes the shortfall in payroll output—ensuring compliance.
🧩 Two Ways to Assign Fringe Credits
You can track fringe credits in TradeSeal at either the employee or job/union level:
1. Employee-Level Fringe Credits
Use the Advanced Employee Import Template to assign fringe credits per employee. For each fringe credit, define:
- Type (e.g., Health, Pension)
- Value (e.g., 5.25)
- Method (e.g., flat or hourly)
- Period (e.g., per hour or per pay period)
You can define up to nine groups of fringe credit fields per employee.
2. Job-Level Fringe Credits
In Data Manager → Benefits, you can mark any job- or union-based benefit with Fringe Credit = Yes. These are typically used when fringe contributions are tied to a specific job or union contract, rather than varying per employee.
💡 Example
Let’s say your prevailing wage fringe requirement is $12.00/hour.
If an employee has:
- $6.00/hour employer-paid health insurance
- $2.00/hour pension plan
- $1.00/hour life insurance
Total fringe credit = $9.00/hour
Fringe shortfall = $3.00/hour
TradeSeal will include $3.00/hour as a fringe due (cash in lieu amount) in the payroll output.
🔁 Automating Fringe Credit Workflows
To fully automate your fringe credit calculations:
- Gather fringe credit data into your HRIS
- Use the Advanced Employee Import Template
- Upload (or API) that data into TradeSeal
Fringe credits will be applied automatically every pay period—saving time and improving compliance.