An example of public money not subsidizing private benefits is with health insurance, a benefit that has a fixed cost. Because employees derive the benefit 24 hours a day, seven days a week, and not just when they are working prevailing wage, the benefit is “annualized” in its payment mechanism.
Multiply the monthly premium by 12 months to arrive at an annual cost. This amount is then divided by the number of available standard work hours in a year. (2080 is the commonly accepted number of standard annual work hours based upon 40 hours per week times 52 weeks, as long as the employee does not work overtime).
The resulting hourly cost is the amount that a prevailing wage contractor can use when taking credit on his certified payroll reports.