Overview of University Benefit Rates

The University applies composite benefit rates to allocate employer benefit related costs to the various University budgets. The applied benefit rate to each employee’s payroll expense is based on the rate assigned to each payroll expense account in the University’s Peoplesoft Human Resource System. The University allocates the benefit rates to the University budgets during each payroll’s posting process to the General Ledger.

The four benefit rates are for Full Time employees, Federal Civil Service employees, Part-time employees and the Univerisity Medical group. The expense accounts are:

• 59110 (Full Time Benefit Rate)
• 59912 (Federal Employee Benefit Rate)
• 59914 (Part-Time Benefit Rate)
• 55916 (University Medical Group Benefit Rate)

The benefit cost component groups included in the benefit rates are Health, Retirement, FICA/Medicare, Employee insurance, Sabbatical leave, Workers’ Compensation, Faculty/Staff Tuition Remission, Unemployment Compensation and several benefit related administrative offices. The Part-time benefit rate includes only FICA, Medicare and Workers' compensations.

 

Due to benefit costs being charged to Federal sponsored agreements, an annual proposal of the projected benefit rates for the upcoming fiscal year is submitted to the Federal government’s Division of Cost Allocation for their review and approval. Upon approval, a rate agreement is signed between the Federal Government and the University prior to the start of each fiscal year.

All costs included in the benefit rates must comply with the Federal Government’s OMB Circular A-21 Cost Principles for Higher Education. 

 

For sponsored agreement proposals, future year projected rates are derived and communicated to the Sponsored Project Administration to use in applicable multi-year proposals.

Last modified August 28 2012 01:32 PM