Fringe Benefits Group: A Complete Guide
Introduction
When it comes to keeping employees happy and businesses compliant, the right benefits package is a game changer. That’s where Fringe Benefits Group (FBG) steps in—a name you might’ve heard if you're in the world of government contracting or just looking for smarter ways to handle employee benefits. But what exactly do they do, and why should it matter to you?
Let’s be honest: navigating employee benefits is a jungle. Between healthcare regulations, compliance requirements like the Service Contract Act, and trying to give your employees perks they actually care about, it’s a lot. Fringe Benefits Group helps make all of that easier.
In this article, we’re diving deep into what Fringe Benefits Group offers, why they’re a big deal in specific industries, and how they can help both employers and employees win. Whether you're running a small business or managing contracts with federal agencies, understanding the value of fringe benefits and how FBG manages them could completely shift how you think about compensation.
So, buckle up—this isn’t your average HR talk. We’re peeling back the layers of fringe benefits, real cost savings, and tools that simplify the process.
What Are Fringe Benefits?
Fringe benefits are essentially the cherry on top of your employee’s paycheck. They’re the extra perks that aren’t direct wages but are still considered part of compensation. Think of things like health insurance, retirement plans, tuition assistance, and even gym memberships. They're called “fringe” because they sit on the edge of the core salary but still pack a punch in value.
Let’s break it down even further:
Health insurance – Medical, dental, vision.
Retirement contributions – 401(k) matches, pensions.
Paid time off – Vacation days, sick leave, parental leave.
Education benefits – Tuition reimbursement, student loan help.
Wellness perks – Gym memberships, wellness stipends.
Childcare support – On-site daycare or reimbursement.
Commuter benefits – Transit passes, parking.
Fringe benefits matter because they’re a huge part of why people choose to stay—or leave—a job. In fact, many employees value benefits just as much (if not more) than salary. That’s why companies offering robust benefits have an edge in recruiting and retaining talent.
What’s also important? Tax implications. Certain fringe benefits are tax-exempt, which makes them a win-win: they boost employee satisfaction without necessarily increasing payroll taxes. Of course, there are rules—especially if you’re a government contractor. That’s where experts like Fringe Benefits Group come in to make sure you're playing by the book.
But don’t confuse fringe benefits with standard benefits. Core benefits are usually required (like workers’ comp), while fringe benefits go above and beyond to sweeten the deal.
Who Is Fringe Benefits Group (FBG)?
Fringe Benefits Group is a specialized employee benefits provider with a sharp focus on employers who work under government contracts—especially those who fall under the Davis-Bacon Act and the Service Contract Act (SCA). What makes them stand out isn’t just their benefits packages, but how they help businesses stay compliant while saving money.
Founded with the mission to make benefit management less of a headache for businesses, FBG acts as a partner rather than just a service provider. They’re based in Austin, Texas, and have been serving thousands of clients across the United States for over 30 years. That’s three decades of understanding the ins and outs of employee benefits in heavily regulated industries.
So, what’s their edge?
FBG doesn’t offer cookie-cutter benefit plans. Instead, they tailor each solution based on your company's size, structure, industry, and—most importantly—compliance needs. Their solutions cater to companies that might otherwise struggle to manage the complexity of SCA/Davis-Bacon compliance.
Their comprehensive services include retirement plans, health insurance, voluntary benefits, and regulatory compliance tools—all wrapped up with user-friendly technology platforms that simplify benefits administration.
In essence, if you’re a contractor working on federal or state jobs and juggling wage determinations and compliance requirements, Fringe Benefits Group helps make sure your benefit offerings are not just legal—but strategic.
History and Mission of Fringe Benefits Group
Every great company has a story, and FBG is no exception. The organization was founded in the early 1980s, during a time when managing employee benefits was becoming increasingly complex—especially for employers working with the government. The founders saw a big problem: too many companies were failing to stay compliant with government rules around worker compensation and benefits. Fines were high. Errors were costly.
Enter Fringe Benefits Group, created to be the middleman between complexity and clarity.
Their mission? To simplify benefits for employers while maximizing the value for employees. And they've stayed true to that mission ever since.
Over the years, FBG has continued to evolve, investing in technology, building strong partnerships with insurance carriers, and refining their offerings to meet the changing demands of the labor market. But one thing has remained constant—their focus on compliance, customization, and customer service.
Their approach isn’t just about selling insurance or setting up retirement plans. It’s about education. FBG makes sure clients understand how benefits work, what options are available, and how they can turn compliance into a competitive advantage.
The heart of their mission is helping businesses do the right thing for their workers without sacrificing profitability or peace of mind.
Target Audience of Fringe Benefits Group
Fringe Benefits Group isn’t for everyone—and that’s by design. They specialize in serving employers who have to meet very specific regulatory standards when it comes to employee benefits. Think contractors who do business with the government.
Here’s a closer look at who FBG serves best:
Government Contractors – Especially those under the Davis-Bacon Act or the Service Contract Act, who are required to provide prevailing wage fringe benefits.
Construction Companies – Firms working on federally funded construction projects.
Security & Janitorial Services – Often contracted for public sector work and subject to strict compliance standards.
Healthcare Providers – Serving state or federal programs.
Temporary Staffing Agencies – Providing personnel for public contracts.
Educational Institutions & Charter Schools – That need to offer competitive, compliant benefits.
If your business is required to provide fringe benefits to meet legal obligations—or if you’re looking to transform how you offer voluntary benefits—FBG is designed for you.
But even beyond the public sector, any company looking for a more strategic and cost-effective way to manage benefits could find real value in what FBG offers. The emphasis on customization and compliance is what makes them stand out from traditional brokers.
Core Services Offered by Fringe Benefits Group
Fringe Benefits Group isn’t your run-of-the-mill insurance broker. Their offerings go deep, covering everything from employee benefits to compliance tracking and retirement solutions. Here’s a breakdown of what they bring to the table:
1. Customized Employee Benefit Plans
FBG builds benefits packages from the ground up, tailored specifically to each employer’s needs. Whether you’ve got 20 employees or 2,000, they ensure your plan is compliant and competitive.
2. Compliance Solutions
They offer tools and consulting to help employers stay compliant with the Davis-Bacon Act, Service Contract Act, and ACA. This includes tracking, reporting, and audit preparation.
3. Retirement Planning
FBG designs and manages retirement plans like 401(k)s specifically structured for prevailing wage and government contracting environments. These plans can be a tax-efficient way to meet fringe obligations.
4. Voluntary Insurance Products
Employees can opt into additional coverage—like dental, vision, life insurance, and disability—without driving up employer costs. FBG handles the admin so employers don’t have to.
5. Benefit Administration Technology
Their proprietary tech platform makes it easy to enroll, manage, and track benefits in real time. That includes employer dashboards and employee self-service portals.
This suite of services is designed to lift the administrative burden off employers while ensuring their benefits programs are optimized, cost-effective, and legally sound.
Fringe Benefits in Government Contracting
This is where things get a little more technical—but also where FBG shines brightest.
If you’re in government contracting, you’ve probably heard of the Davis-Bacon Act and the Service Contract Act (SCA). These laws require employers to pay a prevailing wage—including fringe benefits—when working on federally funded projects.
Let’s say you’re a contractor working on a federal construction site. The law says you must pay a specific hourly rate to your workers, plus a fringe benefit rate. You can either pay that fringe rate in cash or provide equivalent benefits.
Here’s where FBG makes a huge difference:
Instead of paying fringe dollars as taxable cash, FBG helps you funnel that money into legitimate, tax-advantaged benefit plans.
This not only satisfies compliance requirements, but it also lowers payroll taxes, improves employee retention, and boosts your proposal competitiveness.
FBG provides the documentation, reporting, and plan administration necessary to ensure that your company stays on the right side of these laws—avoiding audits, penalties, and confusion.
In short? They turn compliance into a competitive advantage.
How FBG Helps Employers with Compliance
Compliance isn’t just a buzzword—it’s a serious business necessity, especially for companies tied to government contracts. Fringe Benefits Group understands the complexities of federal laws like the Service Contract Act (SCA) and Davis-Bacon Act, and they’ve built their entire framework to help employers navigate these choppy waters with confidence.
So how do they do it?
1. Expert Compliance Support
FBG has compliance specialists who stay up to date on every regulation, ruling, and requirement. They’ll help you interpret wage determinations, meet fringe obligations, and avoid costly mistakes.
2. Custom Reports and Documentation
When the Department of Labor comes knocking, your records better be in order. FBG provides thorough documentation, reporting, and compliance audits. This means if you're ever reviewed, you’ve got all the paperwork to show your ducks are in a row.
3. Affordable Care Act (ACA) Compliance
In addition to prevailing wage laws, FBG assists employers in maintaining compliance with the Affordable Care Act. They help track employee hours, coverage offerings, and ensure that reporting is accurate and submitted on time.
4. Audit Readiness and Defense
FBG doesn't just help you get compliant—they help you stay that way. If you're ever subject to an audit, they’ll assist with document preparation and represent you through the process, drastically reducing your risk and stress.
5. Fringe Benefit Credit Management
Tracking who gets what benefits and how they count toward fringe obligations can be confusing. FBG makes it easy. Their systems track every dollar and show exactly how each employee’s benefits contribute to compliance.
In industries where non-compliance can mean thousands (or millions) in fines, FBG’s compliance solutions are less of a luxury and more of a necessity.
Cost Savings Through Fringe Benefits Group
Here’s the part most business owners really lean in to hear—how much can this save us?
Spoiler: A lot.
When you partner with Fringe Benefits Group, you're not just complying with regulations—you’re also reducing your tax liability, improving cash flow, and increasing bid competitiveness. Let’s dig into how:
1. Lower Payroll Taxes
Paying fringe benefits as cash means those dollars are subject to payroll taxes. But if you use FBG to offer legitimate benefit plans, those same dollars are excluded from FICA, FUTA, and SUTA taxes. That’s an instant 7.65% savings for employers—and potentially more.
2. Avoid Penalties and Fines
Mismanagement of fringe benefits and wage requirements can lead to penalties that can cripple small- to mid-sized businesses. FBG’s expertise helps avoid those costly errors.
3. Retain More Talent
High turnover is expensive. Offering benefits that employees actually value—without blowing up your budget—means you’re more likely to keep your team in place.
4. Increased Proposal Competitiveness
In government contracting, lower overhead means sharper bids. When FBG helps you reduce payroll taxes, that money goes back into your operations, allowing you to offer more competitive rates without cutting into profit margins.
5. Efficient Benefit Management
FBG’s technology and streamlined systems mean fewer admin hours and less need for in-house HR resources. That’s more money saved through increased efficiency.
It’s not just about compliance—it’s about transforming fringe obligations into a strategic financial move.
Custom Employee Benefit Plans: How It Works
One-size-fits-all doesn’t work anymore—especially in a diverse and dynamic workforce. FBG’s customized benefit plans are designed with flexibility, compliance, and value in mind. Whether your team is full-time, part-time, or seasonal, FBG crafts plans that meet requirements without unnecessary waste.
Step 1: Needs Assessment
They begin by reviewing your current workforce, contracts, and compliance obligations. This includes a breakdown of required fringe rates and how benefits can be applied.
Step 2: Benefit Design
Based on your company’s unique structure, FBG designs a benefits plan that checks every legal box and offers real value to your employees. This can include medical, dental, vision, retirement, and more.
Step 3: Carrier Selection
FBG partners with top-tier insurance and benefits providers. They help you choose carriers that offer the best coverage for your demographic, without inflating costs.
Step 4: Employee Communication
A big challenge with benefits is helping employees understand them. FBG steps in with onboarding materials, webinars, and support to ensure workers know what’s available and how to enroll.
Step 5: Ongoing Management
FBG monitors the benefits plan to ensure everything runs smoothly, handling eligibility, renewals, compliance reporting, and more.
The result? You get a benefits plan that works for your people, your contracts, and your bottom line.
Voluntary Benefits and Why They Matter
Today’s workforce expects more than just a paycheck and basic health insurance. Voluntary benefits—those extras employees can choose and pay for through payroll deductions—are becoming a vital part of competitive compensation packages.
FBG helps employers offer a range of voluntary benefits, such as:
Dental and vision insurance
Short and long-term disability
Life insurance
Accident and critical illness coverage
Legal assistance plans
Pet insurance
Why should you care? Because employees do.
Offering voluntary benefits improves employee satisfaction without costing the employer a dime. They’re fully employee-funded, and FBG’s platforms make it easy to administer them. When employees feel their company offers comprehensive options, they’re more likely to stick around.
And here’s the kicker: voluntary benefits can also help fulfill fringe benefit obligations in government contracts. That’s another way FBG helps companies meet the rules while boosting employee happiness.
Technology & Tools Provided by FBG
In today’s fast-paced, tech-driven workplace, managing employee benefits through spreadsheets and paperwork just won’t cut it. That’s why Fringe Benefits Group has heavily invested in modern technology and intuitive tools that make life easier for both employers and employees.
Here’s a look at the technology that powers FBG’s services:
1. Benefits Administration Platform
At the heart of FBG’s technology stack is their robust online benefits management system. Employers can easily:
Enroll new employees
Track benefit contributions
Monitor compliance in real time
Generate reports for audits or internal reviews
Employees also get access to a self-service portal, where they can:
Review their benefit selections
Make changes during open enrollment
Download plan documents
Ask questions or submit support requests
Everything’s centralized, secure, and accessible 24/7.
2. ACA Tracking & Reporting
FBG’s platform tracks employee hours and coverage eligibility to ensure ACA compliance. It automates the generation of required forms like 1094-C and 1095-C, removing a massive administrative burden from employers.
3. Fringe Accounting Tools
Tracking fringe dollars is critical for government contractors. FBG provides tools that show where every penny of fringe funds is allocated—health, retirement, voluntary benefits, or cash. This allows contractors to maximize tax savings while staying compliant with SCA/Davis-Bacon regulations.
4. Real-Time Compliance Dashboards
With FBG’s dashboard, employers can instantly see whether they’re meeting wage determination requirements, who’s covered by what, and where any gaps might be. It’s a proactive tool that helps you stay ahead of any compliance issue.
5. HR Integration
Their systems can often integrate with existing HR and payroll software, creating a seamless experience that reduces redundancy and data entry errors.
By offering user-friendly tech that’s specifically built for government contractors and prevailing wage environments, FBG bridges the gap between legal compliance and operational efficiency.
Client Success Stories & Case Studies
Nothing proves value like real-world results. Fringe Benefits Group has worked with thousands of businesses—big and small—to create benefits strategies that make a measurable difference. Here are a couple of condensed case studies that highlight their impact:
Case Study #1: Construction Firm with Government Contracts
A mid-sized construction company working on federal infrastructure projects was paying fringe benefits as additional cash compensation. This led to high payroll taxes and limited employee retention.
FBG’s Solution:
Designed a customized benefit plan using fringe dollars
Integrated retirement options and voluntary benefits
Delivered employee education sessions
Results:
Saved over $100,000 annually in payroll taxes
Reduced turnover by 25%
Increased competitiveness in government bids
Case Study #2: Security Staffing Company
This company was struggling with SCA compliance. Their internal HR staff didn’t fully understand the wage determination requirements and risked penalties.
FBG’s Solution:
Conducted a full compliance audit
Created compliant benefit structures
Provided real-time compliance tracking tools
Results:
Passed a DOL audit with zero penalties
Streamlined their benefit enrollment process
Improved employee satisfaction scores by 40%
These examples show how FBG isn’t just offering theory—they’re delivering real solutions that protect businesses and support employees.
Pros and Cons of Working with Fringe Benefits Group
No provider is perfect, and it’s important to weigh both the benefits and potential drawbacks before making a decision. Here’s a balanced breakdown of the pros and cons of working with FBG:
Pros:
Specialized expertise in prevailing wage compliance (SCA & Davis-Bacon)
Cost-saving strategies that reduce tax liability and payroll expenses
Customized benefit plans tailored to specific industries and contract needs
Robust tech tools that simplify administration and compliance tracking
Excellent customer service with dedicated account managers and support teams
Enhanced employee retention through better benefit offerings
Cons:
Niche focus may not be ideal for companies not involved in government contracting
Learning curve for first-time users of their tech platform
May require plan overhauls, which can feel overwhelming during transition
Costs can vary based on plan complexity and employee count
Overall, the advantages of working with Fringe Benefits Group far outweigh the limitations—especially for employers navigating complex labor laws and compliance landscapes.
Choosing the Right Benefits Provider
Not all benefits providers are created equal. If you’re looking to partner with a company like FBG—or evaluating competitors—there are some critical factors to consider:
1. Industry Experience
Does the provider understand the specific compliance challenges your business faces? FBG has decades of experience in regulated industries, giving them a leg up.
2. Customization
Can they design benefits that meet your unique needs? FBG tailors every plan to the employer, rather than offering generic packages.
3. Technology
Do they offer user-friendly tools to help manage benefits? FBG’s tech is among the best in the compliance-focused benefits space.
4. Compliance Support
Are they truly experts in laws like SCA, Davis-Bacon, and ACA? FBG’s primary selling point is their deep regulatory knowledge.
5. Cost Transparency
Are the fees clear and fair? FBG offers scalable solutions with transparent pricing models to suit companies of all sizes.
Before you sign a contract with any provider, ask for references, demo their platform, and review how they support compliance—because the wrong benefits provider can cost far more than you save.
How to Get Started with Fringe Benefits Group
If you’re thinking, “Okay, this sounds great—now what?” don’t worry. Getting started with FBG is a straightforward process designed to minimize disruption while maximizing long-term benefit.
Step 1: Initial Consultation
FBG begins with a discovery call where they learn about your business, contracts, workforce, and current benefit structure.
Step 2: Compliance Review
They’ll conduct a compliance audit to identify gaps, risks, and opportunities. If you’re out of step with SCA/Davis-Bacon laws, they’ll flag it right away.
Step 3: Custom Plan Proposal
You’ll receive a customized plan designed to meet your obligations, reduce taxes, and improve employee satisfaction. This includes multiple options for insurance, retirement, and voluntary perks.
Step 4: Implementation
Once approved, FBG will roll out your new plan—including employee communication, enrollment support, and integration with your existing systems.
Step 5: Ongoing Support
Post-launch, FBG provides regular updates, compliance check-ins, and access to dedicated account reps. They also manage renewals, claims issues, and more.
Whether you’re switching from a traditional broker or starting from scratch, FBG makes the process smooth, compliant, and cost-effective.
Conclusion
Fringe Benefits Group isn’t just another benefits provider—they’re a strategic partner for businesses that need to stay compliant, save money, and offer valuable benefits to their team. If you’re in a government-regulated industry or work under SCA/Davis-Bacon guidelines, choosing FBG could be one of the smartest business decisions you make.
With decades of experience, cutting-edge technology, and personalized support, they’re uniquely equipped to turn a complex problem—employee benefits compliance—into a competitive advantage. Whether it’s reducing tax liability, simplifying benefit administration, or keeping you audit-ready, FBG is the type of partner that grows with your business.
FAQs
1. What types of companies benefit the most from working with Fringe Benefits Group?
Government contractors, construction firms, and service providers who work under SCA or Davis-Bacon contracts benefit the most due to FBG’s compliance expertise and tailored solutions.
2. Can FBG help us even if we’re a small business?
Absolutely. FBG works with businesses of all sizes and designs scalable solutions based on your employee count, contracts, and budget.
3. Do they offer help during Department of Labor audits?
Yes, FBG provides full audit support, including documentation, data review, and even representation during the audit process.
4. How much can I save by using FBG instead of paying fringe dollars as cash?
Savings vary, but many employers see a reduction of 7% to 10% in payroll tax liability, plus improved employee retention and bid competitiveness.
5. Is the FBG platform hard to learn or integrate?
Nope. The platform is designed for ease of use and can often integrate with existing HR/payroll systems. Training and support are included.
SOURCEs
https://www.dol.gov/agencies/whd/government-contracts/service-contracts
https://www.dol.gov/agencies/whd/government-contracts/construction