Fringe Benefit Rates

The University's fringe benefit rates are calculated by Financial Services annually and negotiated with the Department of Health and Human Services.

Rates are calculated for benefit eligible (full benefits) and benefit ineligible employees (FICA, Medicare and Workers' Comp only). In addition, a Federal rate is calculated which is the same as the benefit eligible rate, excluding unallowable dependent tuition remission benefit expenses. This rate is only applied to salaries charged to Federal awards.

Some of the major fringe benefit cost categories are: Health Insurance, Retirement, FICA/Medicare, Tuition Remission, Workman's Compensation and Unemployment Insurance. Fringe benefit expenses also include short/long term disability, life insurance, temporary shutdown, staff/faculty assistance, child/elder care, employee physicals, training and flex-transportation/medical/dependent.

Each rate is calculated by dividing the projected benefit expenses, including any prior period over or under recoveries, applicable to each employee category (benefit eligible, benefit ineligible and Federal) by the corresponding wage base.

The University is required to use the current federal fringe benefit rates (below) as the provisional rates for future years until DHHS amends the rate for all federal proposals. The University Budget Office sets the non-federal fringe benefit rate to be used for all non-federal proposals. No increments may be added to the current fringe rate for future years’ budgets. 

The following fringe benefit rates will be in effect for the designated years:

Fringe Benefit Rates

  Actual
FY2017
Actual
FY2018
Actual
FY2019
Benefits-eligible employees (benefit levels 1 and 2), federal awards (Ledger 5) 26.8% 23.2% 21.2%
Benefits-eligible employees (benefit levels 1 and 2), all other 29.8% 27.1% 25.4%
Benefits-ineligible employees (benefit level 3) 7.2% 7.3% 7.2%

Fringe Benefit Rate Breakdown by Component FYs 17-19

For more information on these rates, and to get the most comprehensive rate data please visit Financial Services website.