Fringe Benefit Error: $156,000 Over Four Years

What Happened

A contractor reported union fund contributions as fringe benefits on certified payroll. The issue: those contributions covered all hours worked -- not just prevailing wage hours on federal projects. The contractor was double-counting fringes for private project hours, inflating the reported fringe benefit amount.

Why Fringe Calculations Are Dangerous

The WH-347 form's "Gross Amount Earned" column looks simple but hides a maze of regulations. Contractors can pay fringe benefits as cash (directly to workers), through bona fide plans (union funds, health insurance), or a combination. Each method has different reporting requirements, and mixing them up creates silent liabilities.

The $156,000 Shortfall

Over four years of federal projects, the double-counted fringes created a $156,000 gap between what was reported and what was actually owed. The DOL discovered the discrepancy during a routine audit. The contractor had been in technical violation on every certified payroll submission for four years.

How ProForge Prevents This

ProForge separates prevailing-wage hours from private project hours automatically. Fringe benefit calculations are computed per project type, ensuring that union fund contributions are only counted against the correct hour pool. The system generates split reports that make the math transparent and auditable.