For the purposes of grant applications, fringe benefits are usually considered a direct cost. Generally speaking, they should not be calculated as part of indirect costs. Please work with your Sponsored Programs grant administrator to determine how fringe benefits should be treated.
Fringe benefits are estimated according to the employee’s salary contract, which varies from individual to individual and can vary from paycheck to paycheck, depending on a number of factors, including whether they are enrolled in UCA’s health insurance and/or retirement plans. The actual cost of benefits will be charged to the grant.
Professional staff from the Division of Finance & Administration, Human Resources, and Sponsored Programs developed these estimated fringe benefits rates in conjunction with IRS guidelines.
Estimated Fringe Benefits Rates
| Employees Working on a Grant Project | Benefits Included | Period of Work | How Much in Fringe Benefits to Estimate |
|---|---|---|---|
| Faculty with 9-Month Contract | All | Fall and Spring | 32% |
| Faculty with 9-Month Contract | FICA/Medicare, Retirement, Worker's Comp, Unemployment | Summer | 20% |
| Faculty with 12-Month Contract | All | Calendar Year | 32% |
| Classified and Non-Classified Staff | All | Calendar Year | 32% |
| Extra Help Working 30+ Hours / Week | All | Calendar Year | 32% |
| Extra Help Working Less Than 30 Hours / Week | FICA/Medicare, Worker's Comp, Unemployment | Calendar Year | 8% |
| Graduate Assistants Enrolled Full Time | Worker's Comp | Academic Year | .3% |
| Graduate Assistants Enrolled in At Least One Credit Hour | Worker's Comp | Summer | .3% |
| Undergraduate & Graduate Student Workers Enrolled Full Time | Worker's Comp | Calendar Year | .3% |
| Undergraduate & Graduate Students Enrolled Less Than Full Time (& Graduate Students Not Enrolled in Summer) | FICA/Medicare, Worker's Comp, Unemployment | Calendar Year | 8% |
To calculate fringe benefits for student workers at .3%, multiply the salary/wages by .003. For example, the fringe benefit charge for a graduate assistant making $10,000 from a grant during the academic year is $10,000 x .003 = $30.
Considerations
Graduate students must be enrolled in one credit hour during the summer in order to be eligible for a graduate assistantship. Graduate assistants who do not enroll in coursework during the summer are treated as student workers and are paid an hourly wage. It can take up to one month for this status change to be processed, meaning there will be a gap in students’ pay that can have a serious negative effect if they have not budgeted their expenses for a period of time without pay.
Students (graduate and undergraduate) may only work 20 hours/week unless a PI has obtained approval from the appropriate vice president. Students working more than 20 hours will pay more in fringe benefits. Please consult the grant administrator for your division to calculate the fringe benefits rates for students working more than 20 hours. Under federal law, international students may only work 20 hours a week unless they have a work visa.
A termination PAF should be filed with Human Resources for ALL graduate assistants who vacate their positions or whose position expires. This enables the university to track keys and key cards.
Breakdown of Benefits
Fringe benefits may include the following.
- Dental Insurance
- FICA/Medicare Tax
- Health Insurance
- Life Insurance
- Long-Term Disability Insurance
- Misc/Fee Waivers/ Athletic/ Event Admission
- Retirement
- Sick Leave/Vacation
- Worker’s Compensation
- Unemployment