Salary Costs & Fringe Benefit Rates
Wages are based on the institutional base salary established on the employee's annual contract.
Fringe benefits include employer-paid contributions for retirement, health care, life insurance, etc. The cost of these benefits is calculated as a percentage of salary. Since benefits differ for different categories of personnel, there are a number of different fringe benefit rates. Fringe should be calculated and added into the budget as a line item to represent Total Compensation.
PERA retirement plan: 19.25% +1.45% Medicare
Non-PERA retirement plan: 11.4% +1.45% Medicare
Students enrolled in classes have no fringe taken out
Students working on grants who are NOT enrolled are charged for Medicare
*Grants funding 100% of employee compensation must also include 100% of fringe