University of Vermont

Cost Accounting Services 

Cost Accounting Standards 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 five benefit rates are for Full Time employees, Federal Civil Service employees, Part-time employees, University Medical group and the Graduate Student employees. The expense accounts used to post the benefit rate charges are:

  • 59110 (Full Time Benefit Rate)
  • 59912 (Federal Employee Benefit Rate)
  • 59914 (Temporary/Part-Time Employee Benefit Rate)
  • 59915 (Student Employees Benefit Rate)
  • 59916 (University Medical Group Benefit Rate)
  • 59918 (Graduate Student 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, Workers' compensation and federally mandated (ACA) health coverage costs for eligible temporary employees. The Student Employees benefit rate includes FICA/Medicare and Workers' Compensation. The Graduate student benefit rate includes health insurance costs and workers compensation.


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 Cost Allocation Services program office 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 applicable Federal Government regulations (Uniform Guidance 200.431)


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 April 18 2018 08:38 AM