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Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 355
Experience:  Former IRS Revenue Agent
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I need help figure out how to properly calculate Prevailing

Customer Question

I need help figure out how to properly calculate Prevailing Wage per Davis-Bacon act include Fringe Benefits + 10% and what of the fringe benefit pay is subject to witholding
JA: I'm not sure of the exact price, but there's only a $5 deposit. The rest of the price information will be on the page I send you to.
Customer: ?
JA: What confuses you?
Customer: your response
JA: What state are you in? It matters because laws vary by location.
Customer: this is for Missouri
JA: Has anything been filed or reported?
Customer: not yet, work has not commenced
JA: Anything else you want the lawyer to know before I connect you?
Customer: not that I can think of
Submitted: 23 days ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 17 days ago.

Dear Customer,

1) The fringe benefit under Davis-Bacon Act, a labor law, includes such as sick leave, vacation, health insurance, etc.

https://www.dol.gov/whd/programs/dbra/faqs/fringes.htm

https://www.dol.gov/whd/regs/compliance/whdfs66.pdf

2) Vacation, sick leave, and holiday day pay are compensation. They are included in wages and is subject to payroll taxes including withholding.

3) For a complete list on employee benefits and a broader issue of which ones are subject to taxable wages and/or deductible for the employer, we need to refer to the IRS publication 15-B. https://www.irs.gov/pub/irs-pdf/p15b.pdf

The benefit can include privilege of driving company car and free gym use at the job site.

Please feel free to follow up.

Regards,

Fiona

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP

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