Are union fringe contributions taxable?

Employer contributions to a qualified pension plan, or to a health plan, are generally not wages for Social Security and Medicare tax, and employer-provided health coverage is not income to the employee. Other funds, such as vacation, holiday, annuity, or training funds, are taxed by their own terms; check each fund. Vacation pay paid to the employee is wages, withheld as regular pay, or as supplemental wages when it comes on top of regular pay.

Does union fringe count toward Davis-Bacon fringe?

Contributions to bona fide plans count toward the fringe amount on the wage determination, credited per hour across all hours worked unless an exception applies. Any shortfall is paid in cash.

What goes into a remittance report?

Hours and contributions by employee for each fund, and the dues withheld, for the period the fund or local sets.

Which plan includes union + certified payroll?

It is available as an add-on to any plan. Pricing is on the pricing page.

Does it share data with the rest of Worklio?

Yes. Every module works from one employee record, so changes flow to payroll, time, benefits, and reporting automatically.

Yes. Modules can be added at any time; your data is already in place.

PLATFORM / PAYROLL CORE / Union + certified payroll

Union and certified payroll, purpose-built.

Configure prevailing wage rates, fringe benefit calculations, union dues, and apprenticeship pay by project and classification, and generate WH-347 certified payroll reports.

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PREVAILING WAGE: Rates by project + classification
UNION: Dues, fringes, benefit packages
CERTIFIED PAYROLL: WH-347 reports
JOB COSTING: Segments + class codes

Adding a WH-347 certified report for a certified project to a weekly payroll policy in Worklio

WHAT'S INCLUDED

01
Prevailing wage rates
By project, location, and classification.
02
Fringe benefits
Calculated as cash or plan contributions.
03
Union dues + packages
Deductions and remittance reports by local.
04
Apprenticeship rates
Progressive pay by level.
05
WH-347 reports
Certified payroll with job costing segments.
06
Workers' comp assignments
Class codes per job and employee.

WHERE IT GOES WRONG

Every local has its own rules.
Each agreement sets its own rates, dues, fringe packages, and apprentice steps.
How Worklio handles it
Union dues and benefit packages, with deductions and remittance reports by local, and apprenticeship rates with progressive pay by level. Available as an add-on to any plan.
Fringe on the right hours.
One fund is owed on hours worked, another on hours paid; one counts overtime hours once, another at the premium rate. The agreement decides.
How Worklio handles it
Fringe benefits calculated as cash or plan contributions.
Remittance reports.
Every fund wants hours and contributions reported on its own schedule, and contributions are owed on the terms of the plan and the agreement.
How Worklio handles it
Deductions and remittance reports by local.
Prevailing wage jobs under a union agreement.
On a federal job the wage determination sets the floor. Contributions to bona fide union plans count toward its fringe amount; any shortfall is paid in cash.
How Worklio handles it
Prevailing wage rates by project, location, and classification, with WH-347 certified payroll reports.

WHAT TO HAVE ON FILE

01The agreement and its dates. Rates, fringes, and dues, with their effective dates.
02Each fund's hour basis. Hours worked or paid, and how overtime hours count.
03Dues authorizations. A written assignment from each employee whose dues you deduct.
04A remittance calendar. When each fund and local expects its report and payment.
05Union fringe on federal jobs. Plan contributions credited per hour against the wage determination's fringe amount.
06Records for fund audits. Hours and contributions by employee, fund, and period.

WORK IT OUT

Calculators follow federal rules only; state law can differ.

QUESTIONS

By the agreement: a rate per hour on the hours the fund counts. At $8.00 an hour on hours worked, a 45-hour week owes $360. A fund on a premium-rate basis counts each time-and-a-half hour as 1.5 hours and each double-time hour as 2.

Sources: 29 U.S.C. 186(c)(4); 29 U.S.C. 1145; 26 U.S.C. 3121(a); 26 U.S.C. 106; IRS Publication 15; 29 CFR 5.31; 29 CFR 5.25. General information, not legal or tax advice.

HOW IT WORKS

A planned go-live, with parallel runs first.

01Discovery + design. We map entities, pay rules, deductions, and integrations.
02Data + configuration. YTD wages, tax accounts, benefits, and GL mapping loaded and tested.
03Parallel runs. One or more payrolls run beside your current provider and matched to the cent.
04Go live. Usually at a quarter or year start. Employees invited, your team trained.