Fringe Benefits Group
A fringe benefits group is a benefits administrator that designs and manages employee benefit programs, most often for businesses that must meet prevailing wage rules on government contracts. One of the best-known names in this space is Fringe Benefit Group, which serves contractors and hourly workforces across the United States. This page explains what a fringe benefits group does, how its programs work and what employers, employees and healthcare providers should know.
What Is a Fringe Benefits Group?
A fringe benefits group combines insurance products, retirement plans and administration services into a single program. Instead of buying each benefit separately and handling paperwork in-house, an employer works with one administrator that:
- Designs benefit plans that fit the employer’s workforce and budget
- Sources coverage from insurance carriers and plan providers
- Handles enrollment, eligibility and billing
- Tracks hourly fringe contributions for prevailing wage compliance
- Provides online portals for employers, members and healthcare providers
Fringe Benefit Group and Prevailing Wage Contractors
Fringe Benefit Group focuses on employers with hourly workers, especially prevailing wage contractors. Companies that perform federally funded construction or service work must follow laws such as the Davis-Bacon Act and the McNamara-O’Hara Service Contract Act. These laws require a minimum hourly wage plus a separate fringe benefit amount for each job classification.
A fringe benefits group helps contractors put that required fringe amount into bona fide benefit plans instead of paying it all as cash. This can lower payroll taxes for the employer and give workers real coverage such as health insurance and retirement savings.
How Hourly Fringe Contributions Work
For each hour an employee works on a covered contract, the employer owes the fringe rate listed in the wage determination. The benefits group calculates the hourly cost of each plan, applies the contributions and reports any shortfall that must be paid as cash wages. For the math behind this, see our guide on how to calculate fringe benefits.
Common Fringe Benefits Group Programs
Programs offered by fringe benefit groups typically include a combination of:
- Health coverage: Major medical, minimum essential coverage (MEC) and fixed indemnity plans
- Dental and vision plans
- Retirement plans: Defined contribution plans funded by hourly fringe dollars
- Life and accidental death insurance
- Short-term disability coverage
- Specialty and voluntary benefits chosen by employees
Fringe Benefit Group has been known for programs such as The Contractors Plan, aimed at government contractors, and The American Worker, designed for hourly and part-time workforces. Plan names and details can change, so always confirm current offerings on the company’s official website.
Benefits of Working With a Fringe Benefits Group
For Employers
- Easier compliance with prevailing wage fringe requirements
- Possible savings on payroll taxes compared with paying fringe as cash
- Less administrative work for enrollment, billing and reporting
- A more competitive package for recruiting skilled trades workers
For Employees
- Access to health coverage that might otherwise be hard to afford
- Retirement savings built automatically from hours worked
- Portable benefits for workers who move between projects
- Online access to plan documents, ID cards and claims
For Healthcare Providers
Doctors, clinics and hospitals that treat plan members use a fringe benefits provider portal to check eligibility, submit claims and view payments. Learn more on our fringe benefits provider portal home page.
How to Choose a Fringe Benefits Group
When comparing benefit administrators, consider the following:
- Experience with Davis-Bacon and Service Contract Act compliance
- Range of plans and the insurance carriers behind them
- Technology: employer, member and provider portals, and payroll integrations
- Reporting that supports certified payroll and audits
- Customer service availability for employers, workers and providers
- Transparent pricing for administration fees
Frequently Asked Questions
Is a fringe benefits group an insurance company?
Usually not. A fringe benefits group is typically an administrator or broker that packages products from insurance carriers and manages the program on the employer’s behalf.
Do only government contractors use fringe benefit groups?
Prevailing wage contractors are the main users, but many programs are also available to private employers with large hourly or part-time workforces.
Can fringe benefits be paid in cash instead?
Yes. Under prevailing wage laws, employers may meet the fringe requirement with cash, benefit plans or a combination. Benefits paid in cash are taxable wages. See our fringe benefit tax guide for details.
Final Thought
A fringe benefits group turns complex prevailing wage requirements into a manageable benefits program. Employers gain compliance support and cost control, employees receive meaningful coverage, and providers get a streamlined way to verify eligibility and process claims. To explore the benefits themselves, visit what are fringe benefits and our list of fringe benefits examples.
Fringe Benefits Provider Portal is an independent informational website and is not affiliated with Fringe Benefit Group. For official plan information, contact the plan administrator directly.