Fringe Benefits

[Navy]

Does anyone have experience calculating Fringe Benefits? I have been given this task and feel like I'm completely lost. I am looking for any step by step process that someone has. Pretend as though, I have no clue...because I do not! lol I would greatly appreciate some direction.

[joel hoffman]

What type of labor efforts is this for? Services, construction?  Professional?  Are you preparing a government estimate, evaluating a proposal, etc. from the government’s perspective?

[formerfed]

This is a good example of what goes in.

https://www.dol.gov/agencies/whd/government-contracts/construction/faq/fringe-benefits

Typical costs

https://www.bls.gov/news.release/pdf/ecec.pdf

 

 

[here_2_help]

8 hours ago, Navy said:

Does anyone have experience calculating Fringe Benefits? I have been given this task and feel like I'm completely lost. I am looking for any step by step process that someone has. Pretend as though, I have no clue...because I do not! lol I would greatly appreciate some direction.

1. The company must define the Fringe Benefit pool. What is included? Is it simply payroll-related company-paid expenses, or does it also include company-paid portions of employee insurance costs? Is the 401(k) match included? What about incentive compensation (bonuses)? Tuition reimbursement? What else?

2. The company must define the Fringe Benefit allocation base. Is it direct labor dollars? What about indirect labor dollars? Is it total salaries (direct and indirect employees)? Maybe it's labor hours not dollars. What is it?

3. The company must project the future costs of the Fringe Benefit pool and the future allocation base.

4. The FB pool costs divided by the FB allocation base equals the Fringe Benefit rate.

Enjoy!