Fringe Benefits
Beginning on August 1, 2022, the University will be using pooled fringe rates rather than actual costs to assess fringe benefit costs for sponsored programs and foundation funding.
The change in accounting for fringe benefits will simplify accounting, budgeting, and projection of fringes by adopting a widely used best practice in higher education. The adoption of pooled fringe rates will make budgeting and charging salaries more predictable and reliable. Individual circumstances do not drive a change in the cost that is charged to the department, because rates are set by categories of employees, not individuals and not individual circumstances.
Rates were established based upon employee classes grouped by benefit eligibility using FY19 data and financial statements. The initial fringe rate components include FICA (social security), health insurance, and retirement.
The current pooled fringe rate agreement allows for three (3) pooled fringe rates. The pooled fringe rates are defined as follows:
| Employee Classification | Fringe Rate |
|---|---|
| Tenure-Track Faculty | 29.60% |
| Civil Service, Administrative Professionals, Non-Tenure Track Faculty | 47.60% |
| Extra-Help, Graduate Assistants, Students | 7.65% |
The appropriate fringe rate will be based on the employee classification for which salary/wages were earned.
Pooled fringe rates apply to wages in all non-exempt funds. Exceptions to charging fringe in this way cannot be made.
Existing awards will be charged using pooled fringe rates, not actuals. Staff supporting grants will be provided tools for projecting potential budget impacts in both July and August. And any impacts which require external sponsor approval will be managed directly by the Award-Management staff in Research and Sponsored Programs.
The pooled fringe rates were negotiated with the US Department of Health and Human Services (DHHS), in consultation with Research and Sponsored Programs, Human Resources, and the Comptroller’s Office, while reviewed by leaders in the Division of Finance and Planning and the Office of the Provost.
Please visit our Frequently Asked Questions page to view updated information on annual rates.
Inquiries and questions related to the transition to pooled fringe rates may be direct to Jason Wagoner, Senior Director, Office of Research and Sponsored Programs.