Davis Bacon wages are a combination of a straight wage and a fringe benefit. Employers are not required to pay anything over that COMBINED amount for straight time. For overtime you pay the wage at time and a half and then the fringe benefit (the fringe is not calculated at time and a half).

If you are using offset and an employee's pay rate is over the required wage Sage does not take into account the excess in wage and still pays the full fringe benefit. The employer is then overpaying the employee.
Example

Bill's wage is $22.00 per hour

Bill works on a job as an operator with a Davis Bacon wage of $17.50 straight wage and $2.50 fringe benefit = a total of $20.00 per hour.

Sage calculates Bill's pay at $22.00 per hour AND adds in the entire fringe benefit of $2.50 per hour in effect paying Bill $24.50 per hour.

by: Trisha M. | over a year ago | Payroll