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🧮 Payroll Worked Examples

Every construction payroll scenario involves the same fundamental question: a worker puts in hours on a project — how do those hours translate into money, and where does that money go? This page walks through seven real-world scenarios with full dollar amounts so you can see exactly how the math works.

The three compliance outputs​

One timesheet produces three separate outputs. Understanding this is the key to understanding construction payroll.

OutputWho receives itWhat it containsTiming
PaycheckWorkerBase wage × hours (ST/OT/DT), minus taxes and deductionsEach pay period
Fringe remittancesUnion trust fundsH&W, pension, vacation, training — per hour workedMonthly to trust funds
Certified payroll reportContracting agencyHours, rates, gross pay, fringe — per worker per projectWeekly (typically)

Every scenario below shows how the numbers flow into all three outputs.

Shift differentials​

Before diving into scenarios, know that many union CBAs include shift premiums for non-standard hours. The two most common structures:

The worker is paid for a full 8-hour day but works fewer hours.

ShiftHours workedHours paidEffect
1st (day)88Standard
2nd (swing)7.586.7% effective premium
3rd (graveyard)7814.3% effective premium

Hourly premium model​

The worker receives an add-on to the base rate.

ShiftBase ratePremiumEffective rate
1st (day)$48.50—$48.50
2nd (swing)$48.50+$2.50/hr$51.00
3rd (graveyard)$48.50+$5.00/hr$53.50

Which model applies depends on the CBA. Some locals use the paid-hours model, others use the hourly premium, and some use a combination. Always check the applicable CBA.

tip

Shift differentials are applied before overtime multipliers. If 2nd shift adds $2.50/hr, the OT rate becomes ($48.50 + $2.50) × 1.5 = $76.50, not $48.50 × 1.5 + $2.50 = $75.25.

Scenario 1: Standard 5×8 week​

The baseline — no overtime, no complications.

DetailValue
WorkerElectrician, IBEW Local 11
ProjectPrivate commercial, Los Angeles
ScheduleMon–Fri, 8 hrs/day
Base wage$48.50/hr
FringesH&W $12.50, Pension $9.75, Vacation $4.25, Training $1.00
Total fringe$27.50/hr

Hours breakdown​

DayHoursSTOTDT
Mon88——
Tue88——
Wed88——
Thu88——
Fri88——
Total404000

Three outputs​

Paycheck:

  • 40 ST × $48.50 = $1,940.00 gross

Fringe remittances:

  • 40 hours × $27.50 = $1,100.00 to trust funds
    • H&W: 40 × $12.50 = $500.00
    • Pension: 40 × $9.75 = $390.00
    • Vacation: 40 × $4.25 = $170.00
    • Training: 40 × $1.00 = $40.00

Certified payroll line:

  • 40 ST hours, $48.50/hr base, $1,940.00 gross, $27.50/hr fringe

Scenario 2: 5×10 week — California daily OT​

California's 8/12 rule triggers daily overtime before the weekly cap is reached.

DetailValue
WorkerSame electrician, IBEW Local 11
ProjectPrivate commercial, Los Angeles (California)
ScheduleMon–Fri, 10 hrs/day
RatesSame as Scenario 1

Hours breakdown​

California daily OT triggers after 8 hours per day. Each 10-hour day produces 8 ST + 2 OT.

DayHoursSTOT (1.5×)DT (2×)
Mon1082—
Tue1082—
Wed1082—
Thu1082—
Fri1082—
Total5040100

Anti-pyramiding check​

Total hours worked = 50, which exceeds the 40-hour weekly OT threshold. But California's anti-pyramiding rule (Labor Code §510) prevents double-counting: the 10 hours already classified as daily OT are not re-classified as weekly OT. The worker doesn't get OT stacked on top of OT.

Result: 40 ST + 10 OT. Not 40 ST + 10 daily OT + 10 weekly OT.

Three outputs​

Paycheck:

  • 40 ST × $48.50 = $1,940.00
  • 10 OT × $72.75 = $727.50
  • Gross: $2,667.50

Fringe remittances:

  • 50 total hours × $27.50 = $1,375.00 (fringes at straight time for all hours worked)

Certified payroll line:

  • 40 ST + 10 OT hours, $48.50/hr base, $2,667.50 gross, $27.50/hr fringe

Scenario 3: 6×10 + 7th day trigger​

Everything at once — daily OT, weekly OT, and California's 7th consecutive day premium.

DetailValue
WorkerSame electrician
ProjectPublic works, California
ScheduleMon–Sun, 10 hrs Mon–Sat, 10 hrs Sunday
RatesSame as Scenario 1

Hours breakdown​

DayHoursClassificationRule applied
Mon108 ST + 2 OTDaily OT after 8
Tue108 ST + 2 OTDaily OT after 8
Wed108 ST + 2 OTDaily OT after 8
Thu108 ST + 2 OTDaily OT after 8
Fri108 ST + 2 OTDaily OT after 8
Sat1010 OTWeekly OT (past 40 ST); daily OT for hrs 9–10 → anti-pyramiding keeps at 1.5×
Sun108 OT + 2 DT7th consecutive day: first 8 at 1.5×, hours past 8 at 2×
Total7040 ST + 28 OT + 2 DT

Saturday detail: By end of Friday, 40 ST hours are used up. Saturday's hours are all beyond the 40-hour weekly threshold. Hours 1–8 are weekly OT at 1.5×. Hours 9–10 would be daily OT (over 8 in a day) at 1.5× — same premium, so anti-pyramiding has no additional effect.

Sunday detail: 7th consecutive day worked in the workweek. First 8 hours at 1.5×, hours 9–10 at 2× (double time).

Three outputs​

Paycheck:

  • 40 ST × $48.50 = $1,940.00
  • 28 OT × $72.75 = $2,037.00
  • 2 DT × $97.00 = $194.00
  • Gross: $4,171.00

Fringe remittances:

  • 70 total hours × $27.50 = $1,925.00

Certified payroll line:

  • 40 ST + 28 OT + 2 DT, $48.50/hr base, $4,171.00 gross, $27.50/hr fringe
caution

The 7th consecutive day rule only triggers when the employee works all seven days of the workweek. If the worker had Sunday off and worked Saturday, Saturday would still be OT (over 40 weekly) but without the 7th-day premium structure.

Scenario 4: 4×10 AWS + emergency Friday​

Alternative workweek eliminates daily OT — until an unscheduled day appears.

DetailValue
WorkerSame electrician
ProjectPrivate commercial, California
ScheduleApproved 4×10 AWS (Mon–Thu), emergency callout Friday
RatesSame as Scenario 1

How the AWS changes the math​

A properly adopted Alternative Workweek Schedule under California Labor Code §511 allows 10-hour days without daily OT. The schedule must be voted on by the affected work group and reported to the DLSE.

Hours breakdown​

DayHoursClassificationRule applied
Mon1010 STAWS — no daily OT for scheduled 10-hr days
Tue1010 STAWS
Wed1010 STAWS
Thu1010 STAWS
Fri88 OTNot a scheduled AWS day → weekly OT (past 40 hrs)
Total4840 ST + 8 OT

Friday detail: Friday is not part of the approved 4×10 schedule. The worker has already accumulated 40 ST hours Mon–Thu. All 8 Friday hours are weekly OT at 1.5×.

If the worker had worked 12 hours on Thursday instead of 10, hours 11–12 would be daily OT (AWS exemption only covers up to 10 hours/day — hours over 10 are OT, hours over 12 are DT).

Three outputs​

Paycheck:

  • 40 ST × $48.50 = $1,940.00
  • 8 OT × $72.75 = $582.00
  • Gross: $2,522.00

Fringe remittances:

  • 48 total hours × $27.50 = $1,320.00

Certified payroll line:

  • 40 ST + 8 OT, $48.50/hr base, $2,522.00 gross, $27.50/hr fringe

Scenario 5: Prevailing wage project with OT​

The critical split — base wage gets overtime premium, fringes stay at straight time.

DetailValue
WorkerElectrician, Inside Wireman
ProjectPublic works school construction, California
PW base wage$58.33/hr
PW fringe$31.75/hr
ScheduleMon–Fri, 10 hrs/day

The prevailing wage OT rule​

On prevailing wage projects, overtime premiums apply only to the base wage. Fringe benefits are paid at the straight-time rate for every hour worked, regardless of whether those hours are ST, OT, or DT. This is a federal rule under Davis-Bacon and matches California DIR practice.

Hours breakdown​

DayHoursSTOT (1.5×)
Mon–Fri10/day8/day2/day
Total504010

Three outputs​

Paycheck:

  • 40 ST × $58.33 = $2,333.20
  • 10 OT × $87.50 ($58.33 × 1.5) = $875.00
  • Gross: $3,208.20

Fringe remittances:

  • 50 total hours × $31.75 = $1,587.50 (straight time — all hours)

Certified payroll line:

  • 40 ST + 10 OT, $58.33/hr base, $3,208.20 gross, $31.75/hr fringe
Common error

Applying the 1.5× multiplier to the full package rate ($58.33 + $31.75 = $90.08 × 1.5) instead of just the base wage. This overcharges the project and can trigger audit findings in the other direction too — if you only multiply the base, the fringe shortfall could result in an underpayment finding.

Scenario 6: Union carpenter on Davis-Bacon — CBA vs PW​

When a union worker is on a Davis-Bacon project, you compare CBA and PW rates component-by-component.

DetailValue
WorkerJourneyman Carpenter, Carpenters Local 22
ProjectFederal courthouse renovation, California
ScheduleMon–Fri, 9 hrs/day (45-hr week)

Rate comparison​

ComponentCBA ratePW rate (Davis-Bacon)Governs
Base wage$52.00$49.75CBA ($52.00)
H&W$13.50——
Pension$10.25——
Vacation$5.00——
Training$0.75——
Total fringe$29.50$28.50CBA ($29.50)
Total package$81.50$78.25CBA

The CBA rate exceeds the PW determination in both base and total fringe, so CBA rates govern. If the PW base had been $54.00 while PW fringe was $26.00, you'd pay PW base ($54.00) and CBA fringe ($29.50) — each component is evaluated independently.

Hours breakdown​

California daily OT: 9-hour days produce 8 ST + 1 OT per day.

DayHoursSTOT (1.5×)
Mon–Fri9/day8/day1/day
Total45405

Three outputs​

Paycheck:

  • 40 ST × $52.00 = $2,080.00
  • 5 OT × $78.00 ($52.00 × 1.5) = $390.00
  • Gross: $2,470.00

Fringe remittances:

  • 45 total hours × $29.50 = $1,327.50 (CBA specifies straight-time fringes for all hours)
    • H&W: 45 × $13.50 = $607.50
    • Pension: 45 × $10.25 = $461.25
    • Vacation: 45 × $5.00 = $225.00
    • Training: 45 × $0.75 = $33.75

Certified payroll line:

  • 40 ST + 5 OT, $52.00/hr base, $2,470.00 gross, $29.50/hr fringe
  • Filing note: on a federal Davis-Bacon project, this goes on a WH-347. If the project is also California public works, the same data goes on the DIR eCPR/A-1-131 as well.
CBA fringe OT varies by local

Some CBAs require certain fringe components (usually H&W and pension) to be paid at the overtime premium rate. If this CBA required H&W and pension at 1.5× for OT hours, the fringe calculation for the 5 OT hours would be:

  • (H&W + Pension) at 1.5×: 5 × ($13.50 + $10.25) × 1.5 = $178.13
  • (Vacation + Training) at 1.0×: 5 × ($5.00 + $0.75) = $28.75
  • ST fringe: 40 × $29.50 = $1,180.00
  • Total fringe: $1,180.00 + $178.13 + $28.75 = $1,386.88 (vs $1,327.50 at straight time)

Always verify the CBA fringe OT language for the applicable local.

Scenario 7: Fringe credit offset — non-union on PW​

A non-union contractor on a prevailing wage project offsets the PW fringe obligation with employer-provided benefits.

DetailValue
WorkerElectrician (non-union)
ProjectState highway bridge, California
PW base wage$58.33/hr
PW fringe obligation$31.75/hr
ScheduleMon–Fri, 8 hrs/day (40-hr week)

Employer-provided benefits​

BenefitHourly value
Medical/dental insurance$8.50/hr
401(k) employer match$3.25/hr
Total creditable benefits$11.75/hr

The offset calculation​

The contractor must meet the full $31.75/hr fringe obligation but can credit bona fide benefits already provided. The remainder is paid as cash-in-lieu directly to the worker.

ComponentPer hourCalculation
PW fringe obligation$31.75Set by wage determination
Employer benefits credit−$11.75Medical + 401(k)
Cash-in-lieu$20.00Paid to worker on paycheck

Three outputs​

Paycheck:

  • Base: 40 × $58.33 = $2,333.20
  • Cash-in-lieu of fringe: 40 × $20.00 = $800.00
  • Gross: $3,133.20

Employer benefit cost (not on paycheck):

  • 40 × $11.75 = $470.00 (paid to insurance carrier and 401(k) plan)

Certified payroll line:

  • 40 ST hours, $58.33/hr base, $3,133.20 gross
  • Fringe: $31.75/hr ($11.75 employer benefits + $20.00 cash-in-lieu)
  • The CPR must show the full $31.75/hr fringe obligation is being met, broken out by type
Audit risk

The most common certified payroll audit finding for non-union PW contractors is failing to document how the fringe obligation is met. "We provide health insurance" is not enough — you need the per-hour value calculation for each benefit, proof the benefits are bona fide (actual coverage, not sham plans), and the cash-in-lieu amount clearly shown on both the paycheck stub and the CPR.

Quick reference: where does each dollar go?​

ComponentPaycheckTrust fundCPR line
Base wage × ST hours✅—✅
Base wage × OT premium✅—✅
Fringe × all hours—✅ (union)✅
Cash-in-lieu of fringe✅—✅
Employer benefits credit—✅ (carriers)✅
Shift differential✅—✅

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