Example: Calculating Fringe Rate for a Job

This example illustrates how to calculate the fringe rate for a job. The fringe rate is calculated based on the job and fringe basis DBA. The amount that is calculated is computed for each pay type because each pay type is set up with a unique multiplier that is defined in the F079425 table.

The system uses these calculations to determine the fringe rate for a job:

Calculation Method	Calculation
Annualize Rate	(DBA Amount for Pay Type x Pay Frequency)/((Hours Per Year x (Job Gross/Total Check Gross)) x (Pay Type Gross/Job Gross)) x Multiplier
Timecard Hours	(DBA Amount for Pay Type/Total Pay Type Hours) x Multiplier

In this example, the Annualize Rate method is used and the following data is set up:

• Fringe basis DBAs

  • 1005, $285

  • 1008, $47

  • 8022, $384.14

• Timecards

  • Timecard1/Job1: 46 hours, PT1, $2162

  • Timecard2/Job2: 34 hours, PT1, $1598

  • Timecard3/Job2: 4 hours, PT100, $282

To calculate the minimum fringe rate for Job1 and Job2:

1. First, you calculate the fringe basis DBAs for each timecard and job:

   DBA Code	Timecard/Job	Fringe Basis DBA
   1005	Timecard1/Job1	(2162/4042) x 285 = $152.44
   	Timecard2/Job2	(1598/4042)x 285 = $112.67
   	Timecard3/Job2	(282/4042) x 285 = $19.89
   1008	Timecard1/Job1	(2162/4042) x 47 = $25.14
   	Timecard2/Job2	(1598/4042) x 47 = $18.58
   	Timecard3/Job2	(282/4042) x 47 = $3.28
   8022	Timecard1/Job1	(2162/4042) x 384.14 = $205.40
   	Timecard2/Job2	(1598/4042) x 384.14 = $151.86
   	Timecard3/Job2	(282/4042) x 384.14 = $26.88

2. Next, calculate the fringe rate for Job1:

   DBA Code	Timecard/Job	Fringe Rate Calculation
   1005	Timecard1/Job1	(112.67 x 26)/((2080 x (2162/4042)) x (2162/2162)) = $3.562
   1008	Timecard1/Job1	(18.58 x 26)/((2080 x (2162/4042)) x (2162/2162)) = $0.587
   8022	Timecard1/Job1	(151.86 x 26)/((2080 x (2162/4042)) x (2162/2162)) = $4.801

   The total fringe rate for Job1 is $3.562 + $0.587 + $4.801 = $8.95.

3. Calculate the fringe rate for Job2:

   DBA Code	Timecard/Job	Fringe Rate Calculation
   1005	Timecard2/Job2	(112.67 x 26)/((2080 x (1880/4042)) x (1598/1880)) = $3.562
   	Timecard2/Job3	(19.89 x 26)/((2080 x (1880/4042)) x (282/1880)) = 3.562 x 1.5 = $5.343
   1008	Timecard2/Job2	(18.58 x 26)/((2080 x (1880/4042)) x (1598/1880)) = $0.587
   	Timecard2/Job3	(3.28 x 26)/((2080 x (1880/4042)) x (282/1880)) = 0.587 x 1.5 = $0.881
   8022	Timecard2/Job2	(151.86 x 26)/((2080 x (1880/4042)) x (1598/1880)) = $4.801
   	Timecard2/Job3	(26.88 x 26)/((2080 x (1880/4042)) x (282/1880)) = 4.801 x 1.5 = $7.202

   The total fringe rate for Job2 is $3.562 + $5.343 + $0.587 + $0.881 + $4.801 + $7.202 = $22.376.

Compare the total fringe rate for Job1 and Job2 with the amount in the F069106 table for the prevailing wage DBA and job. The method of calculation used in the comparison is defined in the F079420 table.