Purpose

This policy outlines the fringe benefits rates to be used when preparing budgets for sponsored project proposals.

Background

Employee benefit costs associated with an employee's effort on a sponsored project are to be proposed and charged to a sponsored project budget, consistent with OMB Circular A-21. The fringe benefit rates are established on July 1 and are subject to change. The rates are updated on an annual basis.

The fringe benefit rates cover expenses such as Worker's Compensation, Unemployment Compensation, Health Plans, Retirement Plan, Social Security, and Medicare for University employees who worked and are paid for under the sponsored project.

Persons / Offices Affected

Department staff who prepare sponsored project proposals to outside sponsors, and faculty and staff paid under the sponsored project budgets.

University Policy

All sponsored project proposal budgets should include funding for employee benefits at the following rates, which cover the costs for separation leave for benefit eligible classified, professional staff, and librarians. The increase in the fringe benefit rates charged to individual budgets will be offset by the elimination of separation leave salary assessments to those same budgets. This change will eliminate large, unanticipated separation leave payouts, which is especially challenging when assessed to budgets with fixed periods and sponsored project budget.

Preliminary rates are not used for sponsored project budgets. The effective date for use of fringe benefit rates established July 1st of any given year is July 16th, for sponsored project budgeting purposes.

Procedures and Guidance

1. Fringe benefit rates table
2. Effective date of fringe benefit rates
3. Benefit rates and separation leave

Responsibilities

Academic Unit eGC1 reviewers:

Review sponsored project budget for consistency with local policies and this GIM.

Office of Sponsored Programs:

• Review sponsored project budget presented in eGC1 and proposal for consistency with each other and for correct application of fringe benefit rates as set out in this GIM.
• Communication with Sponsor as needed for clarification of effective date of rates and application of rates.

Principal Investigator or his/her delegee:

Prepare sponsored project budget consistent with OMB Circular A-21 and this policy with respect to University employee costs.

Definitions

Preliminary Rates:

Estimated costs to calculate the rates for charging fringe benefits to budget during the fiscal year. These preliminary rates are not to be used in sponsored project proposed budgets.

Separation Leave:

Qualifying payments made to benefits eligible employees for accumulated annual leave at the time of separation and accumulated sick leave at time of retirement or death.

Sponsored Project:

Any exchange transaction between the University and the sponsor. A University sponsored project is not a purchase or sale of goods or services or "work for hire" arrangement but instead is a mutual exchange involving the University and a sponsor. Sponsors may provide funding, equipment or other tangible items, such as goods or services, for research, training, education programs, analytical services or other rights or goods.

Other Related Resources

Contacts

Content Creator

Policy Owner: Office of Sponsored Programs

Office of Sponsored Programs
4333 Brooklyn Ave NE | Box 359472
Seattle, WA 98195-9472 | (206) 543-4043 | Fax 685-1732 | Contact Us
Modified: July 7, 2011