• 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.