Salary Costs & Fringe Benefit Rates

Salary Costs

Wages are based on the institutional base salary established on the employee's annual contract. 

Fringe Benefits

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

20.70%

Non-PERA retirement plan: 11.4% +1.45% Medicare

12.85%

Students enrolled in classes have no fringe taken out

0%

Students working on grants who are NOT enrolled are charged for Medicare

1.45%

 *Grants funding 100% of employee compensation must also include 100% of fringe