South Dakota Prevailing Wage Project Cost Calculator

Estimate total labor costs for South Dakota prevailing wage (Davis-Bacon equivalent) public works projects, including base wages, fringe benefits, employer payroll taxes, overhead, and profit markup.

Formulas Used

Regular Base Wages = Base Wage Rate × Regular Hours (≤40/wk) × Workers × Weeks

Overtime Base Wages = Base Wage Rate × 1.5 × OT Hours × Workers × Weeks

Fringe Benefits = Fringe Rate × Total Hours (reg + OT) × Workers × Weeks

Gross Labor = Regular Base Wages + Overtime Base Wages + Fringe Benefits

Employer Payroll Taxes = (Regular + Overtime Base Wages) × Payroll Tax Rate

Total Labor Burden = Gross Labor + Employer Payroll Taxes

Overhead = Total Labor Burden × Overhead Rate

Cost Before Markup = Total Labor Burden + Overhead

Profit Markup = Cost Before Markup × Markup Rate

Total Bid Price = Cost Before Markup + Profit Markup

All-In Cost per Hour = Total Bid Price ÷ Total Hours

Assumptions & References

  • South Dakota follows federal Davis-Bacon Act prevailing wage requirements for federally funded public works projects (contracts ≥ $2,000). SD does not have a separate state prevailing wage law as of 2024.
  • Wage rates shown are illustrative examples based on U.S. Department of Labor Wage Determinations for South Dakota (WD General Decision SD20240001 series). Always verify current rates at SAM.gov or the DOL Wage Determinations Online portal.
  • Overtime is calculated at 1.5× the base wage rate per the Fair Labor Standards Act (FLSA) for hours worked over 40 in a workweek.
  • Fringe benefits are paid at the straight-time rate on all hours worked (regular and overtime), per Davis-Bacon regulations (29 CFR Part 5).
  • Employer payroll taxes are applied to base wages only (fringe benefit contributions are not subject to FICA/FUTA/SUTA).
  • Typical employer payroll tax rate: FICA 7.65% + FUTA 0.6% + SD SUTA ~1.0% ≈ 9.25% (SD SUTA rate varies by employer experience rating; see SD Department of Labor & Regulation).
  • This calculator covers labor costs only. Material, equipment, subcontractor, bonding, and insurance costs must be added separately.
  • Certified payroll records are required for all Davis-Bacon covered projects (WH-347 form).
  • Contractors must post the applicable wage determination at the job site (29 CFR § 5.5(a)(1)).

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