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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
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
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 Richmond, VA  23219
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http://views.vcu.edu/views/ospa/

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