Effective July 1, 2015, the university has negotiated a Consolidated Fringe Rates (CFR) with the federal government which will be used for all university accounts. These rates will be renegotiated annually.
Rates for FY19 (beginning 7/1/2018):
- Faculty (academic year and summer): 26.5%
- Staff (including Irregular Help staff): 33.1%
- Temporary Help (non-benefit eligible): 8.7%
- Student: 3.8%
Rates for FY20 (beginning 7/1/2019):
- Faculty (academic year and summer): 30.9%
- Staff (including Irregular Help staff): 40.5%
- Temporary Help (non-benefit eligible): 8.9%
- Student: 3.4%
More information, including specific employee classes for each rate and updated rates as they are changed are located on the Budget Office website.
UI uses three rates developed under the requirements of the U.S. Office of Management and Budget Circular A-21 and the Code of Federal Regulations 2 CFR 200 (Uniform Guidance). Each rate is calculated by the development of a pool of fringe benefits (numerator) and of a salary base (denominator). The pool consists of UI’s cost of fringe benefits provided to each employee grouping.
Leave accrual and usage are not included in the employee benefit rates and will be charged separately, except for terminal leave. When the pool is divided by the employees' group salary base, the CFR is developed. This rate represents the percentage that will be assessed against the employee’s salary, and this amount will post to the same department account to which the individual employee's salary posts.
- The CFR will be applicable for all salary expenses for employees.
- The CFR went into effect on July 1, 2015. It is not possible to mix the charging practice of actual costs and using fringe benefit rates.
- The CFR will be applied to all employees who are eligible for benefits regardless of whether or not they accept the benefit, and regardless of which benefits options they elect.
- The CFR now includes a small percentage to create a pool of funds to pay annual leave payouts that occur when employees leave UI employment (terminal leave).
- Provide consistent accumulation and allocation of fringe benefits expenses to all functional activities as required by Cost Accounting Standards
- Improve the budgeting process for all UI funds and standardize benefit costs across employee groups
- Simplify the accounting for fringe benefits expenses (fixed rate with carry-forward)
UI has developed three consolidated fringe rates based on employee type determined by the employee class assigned in Banner.
- Includes all academic and fiscal year faculty on all funding sources.
- Currently 31.6%
- Includes all classified, exempt and nonstudent temporary employees
- Currently 39.2%
- Includes all other employee types
- Currently 2.5%