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Guidelines for Fringe Benefits

Fringe benefits budget calculations should be based upon the personal services budget, the benefits eligibility status of employees, and the enrollment choices of the employee.  Fringe benefits charges associated with GL budgets are posted using a combination of actual cost charges and fringe rate charges as listed below.  Appendix B-1 lists fringe cost factors.  Units with personal services budgets supported by Centrally Controlled Funds should NOT establish fringe benefits budgets on these funds.  Budget dollars for fringe benefits charges on Centrally Controlled Funds will be transferred into the account incurring the fringe benefits charge immediately after the charge is posted.


  • Fringe benefit costs that are posted based upon actual charges for employees

                · PEIA insurance (for non-retirees)                         
                · Retirement (TIAA/CREF or STRS)
                · Social Security and Medicare


  • Fringe benefits costs that are posted based upon a rate

                · Workers compensation
                · Unemployment compensation
                · PEIA insurance for retirees
                · PEIA administrative fee

While the review of each employee’s actual fringe benefits cost is the most accurate method of projecting this cost for the unit, it may be impractical for a unit with a large number of employees.  In this case the unit may opt to build a unit specific fringe rate for cost projection purposes.  A simple approach to calculate this rate would be:


  • Identify current fiscal year total cumulative personal services expenditures
  • Identify current fiscal year total cumulative fringe benefits costs excluding PEIA
  • Identify current fiscal year total cumulative PEIA costs
  • Increase the cost of PEIA by the anticipated percentage rate increase.
  • Add the resulting PEIA costs to the other fringe benefits costs
  • Divide the total fringe benefits costs by the total personal services costs
  • The result is a unit specific fringe rate to be used for estimating future year fringe benefits costs.