SFY 2018-19 Fringe Benefit Costs in Proposal Budgets

Show estimated fringe benefit costs as separate budget lines or object codes in a cost reimbursement budget. The university establishes individual estimating rates for the categories of employee listed below.


Faculty and Professional/Administrative Staff

Benefits

26.91% Total Benefits (excluding health insurance)
See Detailed Components

A detailed estimate should include:
12.29%for The State Employees Retirement System (TSERS) Pension Fund, for all other full time State Personnel Act (SPA) and Exempt from Personnel Act (EPA) Professional/Administrative Staff. (For faculty participating in the Optional Retirement System, substitute 6.84%)
6.27%for retiree hospital & medical benefits
0.14%for retiree disability income plans, and
0.16%for retiree death benefits plans.
6.20%or federal OASDI/Social Security
1.45%for federal FICA/Medicare and Medicaid
0.4%Fixed Benefit Composite Rate. This component, collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

$6,104 per year is the FY 19 fixed employer contribution for employee health insurance (are established by the State and subject to revision annually).

Post-Doctoral Associates

Benefits

8.05% Total Benefits (excluding health insurance)
See Detailed Components

A detailed estimate should include:
6.20%for federal OASDI/Social Security
1.45%for federal FICA/Medicare and Medicaid
0.4%Fixed Benefit Composite Rate. This component, collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

$3,939 is the FY 19 fixed cost for post-doctoral health insurance. The costs are a fixed cost per year negotiated by UNC System – (Current Rates).

Graduate Research Assistants

Benefits

8.05% Total Benefits (excluding health insurance)
See Detailed Components

A detailed estimate should include:
6.20%for federal OASDI/Social Security
1.45%for federal FICA/Medicare and Medicaid
0.4%Fixed Benefit Composite Rate. This component, collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

$2,250 Graduate Student Support Plan benefit rates for current academic year (August 1 – July 31) fixed cost for graduate student health insurance on the RA-TA Plan (GSSP). The costs are a fixed cost per year negotiated by NC State.
If the student meets GSSP eligibility requirements, they are eligible for enrollment in the RA-TA Health Insurance Plan.

Temporary/Biweekly Payroll Employee

Benefits

8.05% Total Benefits (excluding health insurance)
See Detailed Components

A detailed estimate should include:
6.20%for federal OASDI/Social Security
1.45%for federal FICA/Medicare and Medicaid
0.4%Fixed Benefit Composite Rate. This component, collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).


Prior Year Fringe Benefit Rates

A history of fringe benefit rate components is available at https://budget.ncsu.edu/budgetoffice/documents/BenefitsHistory.pdf.

Faculty and Professional/Administrative Staff

Benefits

25.68% Total Benefits (excluding health insurance)
A detailed estimate should include:

10.78% for The State Employees Retirement System (TSERS) Pension Fund, for all other full time State Personnel Act (SPA) and Exempt from Personnel Act (EPA) Professional/Administrative Staff. (For faculty participating in the Optional Retirement System, substitute 6.84%)
6.05% for retiree hospital & medical benefits,
0.14% for retiree disability income plans, and
0.16% for retiree death benefits plans.
6.20% for federal OASDI/Social Security
1.45% for federal FICA/Medicare and Medicaid
0.9% Fixed Benefit Composite Rate. This component (typically between 0.7% and 1.5%), collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

$5,984.16 per year is the FY 18 fixed employer contribution for employee health insurance. This amount may be prorated for the employee’s actual FTE share dedicated to a given project. Since this fixed dollar amount has a greater impact on lower salaries, NCSU uses an average salary of $57,500 to calculate an average ratio of health insurance cost to salary of 9.35%.
Note: The calculation is based on the example salary shown above. You may use actual salaries if you so choose. The dollar value of the salary used effects the percentage value.
(NCSU’s simplified proposal estimating rate includes: 16.54% 6.20% 1.45% 1.0% 9.35% rounded to 33%.)

Post-Doctoral Associates

Benefits

8.65% including the following components dictated by the Federal Government:

6.20% for federal OASDI/Social Security
1.45% for federal FICA/Medicare and Medicaid
1.0% Fixed Benefit Composite Rate for FY 2015. This component (typically between 0.7% and 1.5%), collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

Costs are a fixed cost per year negotiated by UNC System – (Current Rates).

$3,814.20 is the FY 18 fixed cost for post-doctoral health insurance. Since this fixed dollar amount has a greater impact on lower salaries, NCSU uses an average salary of $39,000 to calculate an average ratio of health insurance cost to salary of 10%.

Note: The calculation is based on the example salary shown above. You may use actual salaries if you so choose. The dollar value of the salary used effects the percentage value.
(NCSU’s simplified proposal estimating rate includes: 8.65% 10% rounded to 19%).

Graduate Research Assistants NON-EXEMPT

(OASDI/FICA non-exempt per their W-4)

Benefits

8.65% including the following components dictated by the Federal Government:

6.20% for federal OASDI/Social Security
1.45% for federal FICA/Medicare and Medicaid
1.0% Fixed Benefit Composite Rate for FY 2015. This component (typically between 0.7% and 1.5%), collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Graduate Student Health Insurance Costs

Costs are a fixed cost per year negotiated by NCSU.

If the student meets GSSP eligibility requirements, they are eligible for enrollment in the RA-TA Health Insurance Plan.

Graduate Student Support Plan benefit rates for current academic year (August 1 – July 31) fixed cost for graduate student health insurance on the RA-TA Plan (GSSP). We suggest using a 10% inflation factor for budgeting for each future academic year.

Note: Since this fixed dollar amount has a greater impact on lower salaries, NCSU uses an average salary of $16.000, to calculate an average ratio of health insurance cost to salary of 13.16%. The calculation is based on the example salary shown above. You may use actual salaries if you so choose. The dollar value of the salary used effects the percentage value.
(NCSU’s simplified proposal estimating rate includes: 8.65% 13.16% = 21.81% rounded to 22%)

Graduate Research Assistants EXEMPT

(OASDI/FICA exempt per their W-4)

Benefits

1.0% Fixed Benefit Composite Rate. (Set by DHHS, as described above)
2.5% Contingency for potential changes in Student’s OASDI/FICA exemption status


(Trend analysis indicates that students coming into an assistantship scenario at this juncture have a small lag in adjusting to OASDI/FICA exemption. This small ratio accommodates the minor adjustment that may be necessary.)

Graduate Student Health Insurance Costs

Costs are a fixed cost per year negotiated by NCSU.

If the student meets GSSP eligibility requirements, they are eligible for enrollment in the RA-TA Health Insurance Plan.

Graduate Student Support Plan benefit rates for current academic year (August 1 – July 31) fixed cost for graduate student health insurance on the RA-TA Plan (GSSP). We suggest using a 10% inflation factor for budgeting for each future academic year.

Note: Since this fixed dollar amount has a greater impact on lower salaries, NCSU uses an average salary of $16.000, to calculate an average ratio of health insurance cost to salary of 13.16%. The calculation is based on the example salary shown above. You may use actual salaries if you so choose. The dollar value of the salary used effects the percentage value.
(NCSU’s simplified estimating rate includes: 1.0% 2.5% 13.16% = 16.66% rounded to 17%)

Faculty and Professional/Administrative Staff

Benefits

17.13% Total Benefits (excluding health insurance)
Detailed components:

10.78% for The State Employees Retirement System (TSERS) Pension Fund, for all other full time State Personnel Act (SPA) and Exempt from Personnel Act (EPA) Professional/Administrative Staff. (For faculty participating in the Optional Retirement System, substitute 6.84%) (6.05% for retiree hospital & medical benefits, 0.41% for retiree disability income plans, and 0.16% for retiree death benefits plans). See current rates
6.20% for federal OASDI/Social Security
1.45% for federal FICA/Medicare and Medicaid
0.9% Fixed Benefit Composite Rate for FY 2015. This component (typically between 0.7% and 1.5%), collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

Costs are established by the State and subject to revision annually.

$5,753.76 per year is the FY 17 fixed employer contribution for employee health insurance. This amount may be prorated for the employee’s actual FTE share dedicated to a given project. Since this fixed dollar amount has a greater impact on lower salaries, NCSU uses an average salary of $57,500 to calculate an average ratio of health insurance cost to salary of 9.35%.
Note: The calculation is based on the example salary shown above. You may use actual salaries if you so choose. The dollar value of the salary used effects the percentage value.
(NCSU’s simplified proposal estimating rate includes: 15.32% 6.20% 1.45% 1.0% 9.35% rounded to 33%.)

Post-Doctoral Associates

May be used in lieu of the normal estimating rate of 19%

Benefits

A detailed estimate would include:
8.65% including the following components dictated by the Federal Government:

6.20% for OASDI/Old Age, Survivors and Disability Insurance (aka Social Security)
1.45% for Medicare and Medicaid
1.0% for fixed benefit for current employees. Said benefits are charged on an actual cost basis. When an employee ends his or her employment they are entitled to certain pay-outs for things such as severance pay and terminal leave pay. These pay-outs can be a substantial amount of money depending on the employee's history. It is not equitable to charge those pay-outs to the account that paid the last regular salary when several different accounts had paid that employee's salary over the course of their employment. Per the determination of the US Department of Health and Human Services (USDHHS) the university collects small percentage contributions called the "fixed fringe benefit composite rate" from every payroll account every month. The funds collected are used to pay those employment termination expenses. The cost is thereby distributed equally over all payroll accounts and no single account gets charged the total lump sum of those pay-outs.


The fixed benefit composite rate includes costs to be incurred for the payment of earned annual/vacation leave, workers’ compensation, unemployment compensation, short-term disability, and associated benefits & administrative costs charged by the North Carolina Flex Plan all needed when an employee’s status changes (i.e. termination, unemployment, disability, etc.). These costs are charged to every account tied to the employee’s salary. The charges are billed in advance of the employee’s status change and are then retained for actual use at a later date. The composite rate percentage is determined on an annual basis by the U.S. Department of Health & Human Services. Determination is based on the previous year’s actual expenditures for these types of human resource actions.

Health Insurance Direct Costs

Costs are a fixed cost per year negotiated by UNC System

$3,814.20 for post doctoral health insurance prorated for the actual FTE effort dedicated to the project.
Note: The 19% rate is based on an average project salary of $39,000 FTE/year. If the average project salary is anticipated to be considerably lower, actual benefits should be calculated. The reason is because the health insurance is a static rate per year and not a function of an employee’s salary. As such, as the annual FTE salary falls below $39,000 per year the effective rate associated with health insurance increases.
NCSU’s simplified proposal estimating rate includes: 8.65% 10% rounded to 19%.

Faculty and Professional/Administrative Staff

Benefits

15.32% Total Benefits (excluding health insurance)
Detailed components:

9.98% for The State Employees Retirement System (TSERS) Pension Fund, for all other full time State Personnel Act (SPA) and Exempt from Personnel Act (EPA) Professional/Administrative Staff. (For faculty participating in the Optional Retirement System, substitute 6.84%) (5.60% for retiree hospital & medical benefits, 0.41% for retiree disability income plans, and 0.16% for retiree death benefits plans). See current rates
6.20% for federal OASDI/Social Security
1.45% for federal FICA/Medicare and Medicaid
0.9% Fixed Benefit Composite Rate for FY 2015. This component (typically between 0.7% and 1.5%), collected monthly from every payroll account, is used to pay required expenses not attributable to a single project or department. It includes Workers’ Compensation and other expenses due when a permanent employee’s status changes (e.g. retirement, termination, unemployment, and disability).

Health Insurance Direct Costs

Costs are established by the State and subject to revision annually.

$5,735.76 per year is the FY 16 fixed employer contribution for employee health insurance. This amount may be prorated for the employee’s actual FTE share dedicated to a given project. Since this fixed dollar amount has a greater impact on lower salaries, NCSU uses an average salary of $57,500 to calculate an average ratio of health insurance cost to salary of 9.35%.
Note: The calculation is based on the example salary shown above. You may use actual salaries if you so choose. The dollar value of the salary used effects the percentage value.
(NCSU’s simplified proposal estimating rate includes: 15.32% 6.20% 1.45% 1.0% 9.35% rounded to 33%.)

Post-Doctoral Associates

May be used in lieu of the normal estimating rate of 19%

Benefits

A detailed estimate would include:
8.65% including the following components dictated by the Federal Government:

6.20% for OASDI/Old Age, Survivors and Disability Insurance (aka Social Security)
1.45% for Medicare and Medicaid
1.0% for fixed benefit for current employees. Said benefits are charged on an actual cost basis. When an employee ends his or her employment they are entitled to certain pay-outs for things such as severance pay and terminal leave pay. These pay-outs can be a substantial amount of money depending on the employee's history. It is not equitable to charge those pay-outs to the account that paid the last regular salary when several different accounts had paid that employee's salary over the course of their employment. Per the determination of the US Department of Health and Human Services (USDHHS) the university collects small percentage contributions called the "fixed fringe benefit composite rate" from every payroll account every month. The funds collected are used to pay those employment termination expenses. The cost is thereby distributed equally over all payroll accounts and no single account gets charged the total lump sum of those pay-outs.


The fixed benefit composite rate includes costs to be incurred for the payment of earned annual/vacation leave, workers’ compensation, unemployment compensation, short-term disability, and associated benefits & administrative costs charged by the North Carolina Flex Plan all needed when an employee’s status changes (i.e. termination, unemployment, disability, etc.). These costs are charged to every account tied to the employee’s salary. The charges are billed in advance of the employee’s status change and are then retained for actual use at a later date. The composite rate percentage is determined on an annual basis by the U.S. Department of Health & Human Services. Determination is based on the previous year’s actual expenditures for these types of human resource actions.

Health Insurance Direct Costs

Costs are a fixed cost per year negotiated by UNC System

$3,855 for post doctoral health insurance prorated for the actual FTE effort dedicated to the project.
Note: The 19% rate is based on an average project salary of $39,000 FTE/year. If the average project salary is anticipated to be considerably lower, actual benefits should be calculated. The reason is because the health insurance is a static rate per year and not a function of an employee’s salary. As such, as the annual FTE salary falls below $39,000 per year the effective rate associated with health insurance increases.
NCSU’s simplified proposal estimating rate includes: 8.65% 10% rounded to 19%.

Faculty and Professional/Administrative Staff

Benefits

21.19% for the Optional Retirement System, OR 23.66% for the State Retirment Option (TSERS), which already includes:
12.74% ORP Retirement Contribution (includes 5.49% for hospital & medical benefits and 0.41% for Disability Income Plans) -OR-

Detailed components:

15.21% TSERS Retirement Contribution (includes 5.49% for hospital & medical benefits, 0.41% for Disability Income Plans, and 0.16% for Death Benefits Plan). See current rates.
6.20% for OASDI/Old Age, Survivors and Disability Insurance (aka Social Security)
1.45% for Medicare and Medicaid
0.80% for fixed benefit for current employees. Said benefits are charged on an actual cost basis. When an employee ends his or her employment they are entitled to certain pay-outs for things such as severance pay and terminal leave pay. These pay-outs can be a substantial amount of money depending on the employee's history. It is not equitable to charge those pay-outs to the account that paid the last regular salary when several different accounts had paid that employee's salary over the course of their employment. Per the determination of the US Department of Health and Human Services (USDHHS) the university collects small percentage contributions called the "fixed fringe benefit composite rate" from every payroll account every month. The funds collected are used to pay those employment termination expenses. The cost is thereby distributed equally over all payroll accounts and no single account gets charged the total lump sum of those pay-outs.


The fixed benefit composite rate includes costs to be incurred for the payment of earned annual/vacation leave, workers’ compensation, unemployment compensation, short-term disability, and associated benefits & administrative costs charged by the North Carolina Flex Plan all needed when an employee’s status changes (i.e. termination, unemployment, disability, etc.). These costs are charged to every account tied to the employee’s salary. The charges are billed in advance of the employee’s status change and are then retained for actual use at a later date. The composite rate percentage is determined on an annual basis by the U.S. Department of Health & Human Services. Determination is based on the previous year’s actual expenditures for these types of human resource actions.

Health Insurance Direct Costs

Costs are established by the State and subject to revision annually.

$5,192 for health insurance (current rates) prorated for the actual FTE effort dedicated to the project.
Note: The 30.0% rate is based on an average project salary of $57,500 FTE/year. If the average project salary is anticipated to be considerably lower, actual benefits should be calculated. The reason is because the health insurance is a static rate per year and not a function of an employee’s salary. As such, as the annual FTE salary falls below $57,500 per year the effective rate associated with health insurance increases.

Post-Doctoral Associates

Benefits

A detailed estimate would include:
8.45% including the following components dictated by the Federal Government:

6.20% for OASDI/Old Age, Survivors and Disability Insurance (aka Social Security)
1.45% for Medicare and Medicaid
0.80% for fixed benefit for current employees. Said benefits are charged on an actual cost basis. When an employee ends his or her employment they are entitled to certain pay-outs for things such as severance pay and terminal leave pay. These pay-outs can be a substantial amount of money depending on the employee's history. It is not equitable to charge those pay-outs to the account that paid the last regular salary when several different accounts had paid that employee's salary over the course of their employment. Per the determination of the US Department of Health and Human Services (USDHHS) the university collects small percentage contributions called the "fixed fringe benefit composite rate" from every payroll account every month. The funds collected are used to pay those employment termination expenses. The cost is thereby distributed equally over all payroll accounts and no single account gets charged the total lump sum of those pay-outs.


The fixed benefit composite rate includes costs to be incurred for the payment of earned annual/vacation leave, workers’ compensation, unemployment compensation, short-term disability, and associated benefits & administrative costs charged by the North Carolina Flex Plan all needed when an employee’s status changes (i.e. termination, unemployment, disability, etc.). These costs are charged to every account tied to the employee’s salary. The charges are billed in advance of the employee’s status change and are then retained for actual use at a later date. The composite rate percentage is determined on an annual basis by the U.S. Department of Health & Human Services. Determination is based on the previous year’s actual expenditures for these types of human resource actions.

Health Insurance Direct Costs

Costs are a fixed cost per year negotiated by UNC System

$3,528.20 for post doctoral health insurance prorated for the actual FTE effort dedicated to the project.
Note: The 18% rate is based on an average project salary of $36,000 FTE/year. If the average project salary is anticipated to be considerably lower, actual benefits should be calculated. The reason is because the health insurance is a static rate per year and not a function of an employee’s salary. As such, as the annual FTE salary falls below $36,000 per year the effective rate associated with health insurance increases.