Certified payroll
Fringe benefit statements and AB 889
Fringe benefit tracking needs a view of the worker’s full year. We help organize contributions and hours alongside certified payroll records so the annual review has a clear starting point.
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General information, not legal advice.
Annualization starts with all hours
Effective 1/1/2026, AB 889 requires fringe benefit credit to be annualized across public and private hours. Looking only at hours on a public works project does not provide the full annualization record.
Sources: AB 889 (2025), chaptered bill text, California Legislature; California Peculiarities: AB 889 prevailing wage requirements
The end of frontloading
AB 889 ends frontloading and revokes the Director’s waivers. A fringe benefit statement should be supported by records of contributions and hours rather than an assumption that an early contribution can be assigned entirely to public work.
Sources: AB 889 (2025), chaptered bill text, California Legislature; California Peculiarities: AB 889 prevailing wage requirements
Year-end 2026: the first full year under AB 889
AB 889 took effect January 1, 2026. When employer benefit payments are higher on public works than on private work, the credit must be annualized, and the bill removed the Director's exception and revoked annualization exemptions granted before 2026. That makes 2026 the first full year under these rules, so review each worker's annualization records at year-end. Contractors need per-worker annualization records. Bring public and private hours together with benefit contribution records before reviewing the year’s fringe credits.
Sources: AB 889 (2025), chaptered bill text, California Legislature; California Peculiarities: AB 889 prevailing wage requirements
Records to bring to the review
Keep the records connected at the employee level. We help track fringe benefit contributions alongside wages and review the information used for certified payroll.
- Public and private hours for each worker.
- Benefit contributions and the periods they cover.
- Fringe benefit statements and prior certified payroll reports.
- Notes explaining corrections or differences between records.
Sources
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