Attachment 3-WHD 9917 Nov 2025.pdf
PDF 256 KB Posted
- Solicitation number
- RFP 591 260000001634 2
- Issued by
- Michigan
About this file
This is an informational sheet issued by the State of Michigan Department of Labor regarding prevailing wage requirements on state projects. The document provides guidance on fringe benefits that may be credited toward prevailing wage rate payments for construction mechanics. Fringe benefits are creditable when paid directly to workers, contributed on their behalf, provided pursuant to a written contract or policy, or paid into a fund. When fringe benefits are not paid on an hourly basis, the hourly credit is calculated by dividing the annual value by 2,080 hours per year (52 weeks at 40 hours weekly). Examples of creditable benefits include vacation pay, dental and vision insurance, health insurance, life insurance, tuition reimbursement, bonuses, and 401(k) employer contributions, each calculated to determine an equivalent hourly wage credit.
Non-creditable items explicitly excluded from prevailing wage calculations include legally mandated payments such as unemployment insurance, workers' compensation, and FICA contributions; reimbursable expenses including clothing allowances, uniforms, gas allowances, travel time, and meal or lodging reimbursement; and other payments not classified as wages or fringe benefits, such as industry advancement funds and financial or material loans. This guidance applies to the Culvert Rehabilitation and Drainage Restoration as-needed project in Michigan and establishes the framework for contractors to ensure compliance with prevailing wage requirements on state construction projects.
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Text version
STATE OF MICHIGAN
Informational Sheet: Prevailing Wages on State Projects
WHD-9917 11/25
General Information Regarding Fringe Benefits Certain fringe benefits may be credited toward the payment of the Prevailing Wage Rate:
o If a fringe benefit is paid directly to a construction mechanic o If a fringe benefit contribution or payment is made on behalf of a construction mechanic o If a fringe benefit, which may be provided to a construction mechanic, is pursuant to a written contract or policy o If a fringe benefit is paid into a fund, for a construction mechanic
When a fringe benefit is not paid by an hourly rate, the hourly credit will be calculated based on the annual value of the fringe benefit divided by 2080 hours per year (52 weeks @ 40 hours per week).
The following is an example of the types of fringe benefits allowed and how an hourly credit is calculated:
Vacation 40 hours X $14.00 per hour = $560/2080 = $.27 Dental insurance $31.07 monthly premium X 12 mos. = $372.84 /2080 = $.18 Vision insurance $5.38 monthly premium X 12 mos. = $64.56/2080 = $.03 Health insurance $230.00 monthly premium X 12 mos. = $2,760.00/2080 = $1.33 Life insurance $27.04 monthly premium X 12 mos. = $324.48/2080 = $.16 Tuition $500.00 annual cost/2080 = $.24 Bonus 4 quarterly bonus/year x $250 = $1000.00/2080 = $.48 401k Employer Contribution $2000.00 total annual contribution/2080 = $.96
Total Hourly Credit $3.65 Other examples of the types of fringe benefits allowed:
• Sick pay
• Holiday pay
• Accidental Death & Dismemberment insurance premiums
The following are examples of items that will not be credited toward the payment of the Prevailing Wage Rate o Legally required payments, such as:
• Unemployment Insurance payments
• Workers’ Compensation Insurance payments
• FICA (Social Security contributions, Medicare contributions) o Reimbursable expenses, such as:
• Clothing allowance or reimbursement
• Uniform allowance or reimbursement
• Gas allowance or reimbursement
• Travel time or payment
• Meals or lodging allowance or reimbursement
• Per diem allowance or payment o Other payments to or on behalf of a construction mechanic that are not wages or fringe benefits, such as:
• Industry advancement funds
• Financial or material loans
File details come from the government source that posted it. Updated .