Re: Fringe Benefit rates Herbert B. Chermside 05 Oct 1999 08:59 EST
Gina, the answer is institution-specific, so confirm with your accountants. However, the following is very common: The typical Academic Year contract covers approximately 9 months (commonly 39 weeks of classes plus some break periods). The total cost for a year of the package of health, retirement, life insurance, and other benefits is divided by 9 and deducted each month. If the faculty member does no work in the summer, she is still covered for these benefits. If she also works in the summer, some of the TAXES that are also rolled into the "benefits" cost apply on a pay period basis, not on a "fraction of the total year" basis. FICA and Medicare taxes ("social security") work that way. So, there's no "double dipping". Your accountants can define exactly what's in those different rates for your insitituion. At my institution we have a further confusion: our accountants have a "pooled" rate for sponsored programs only, and "state" rates for all other pay sources. It is done for perfectly good accounting reasons, but having these differences trips up maive budget builders! Chuck At 04:50 PM 10/4/99 +0000, you wrote: >1) Could someone explain to me what is a difference between >academic and summer fringe benefit rates? > >2) Could you also provide me with the breakdown of what constitute >or what has been deleted for the summer FB rate? > >3) Would this be double dipping since non-active faculty members >receive a same (is it?) benefit as active faculty members? > >Thanks in advance for your response. > >gina > > >====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") >====================================================================== > Herbert B. Chermside, CRA Director, Sponsored Programs Administration Virginia Commonwealth University PO BOX 980568 Richmond, VA 23298-0568 Express Delivery Only: Sanger Hall, Rm. 1-073 11th & Marshall Streets Richmond, VA 23219 Voice: 804-828-6772 Fax 804-828-2521 OFFICE e-mail xxxxxx@VCU.EDU Personal e-mail xxxxxx@vcu.edu http://views.vcu.edu/views/ospa/ ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================