GIM 03 – Fringe Benefit Rates and Sponsored Programs
Contents
Purpose
This policy outlines the University of Washington fringe benefits rates to be used when preparing budgets for proposals to sponsors as well as the fringe benefit rates used on awards.
Background
Fringe benefit rates cover expenses such as Worker’s Compensation, Unemployment Compensation, Health Plans, Retirement Plan, Social Security, Medicare, and Separation Leave for University employees.
Each year, using methods set out in approved Cost Accounting Standards, Financial Accounting and Management Accounting and Analysis (MAA) use estimated costs to calculate the rates for charging fringe benefits to budgets for the next fiscal year. Those rates are then submitted to the University’s cognizant agency for indirect costs, the Department of Health and Human Services (DHHS), Division of Cost Allocation. These rates are known as the final/proposed fringe benefit rates, subject to change only by DHHS requirements.
Unless DHHS has requirements to change these rates, approved/negotiated benefit rates are effective July 1 of each year.
University Policy
Fringe benefit rates associated with an employee’s salary on a proposed sponsored program must be included in the budget presented to the sponsor, consistent with sponsor’s policies. For each position, use the rate corresponding to the position of the individuals participating on the project.
The UW Payroll system calculates fringe benefit rates based on the position classifications that an individual is assigned within the payroll system.
If a final or approved rate is not available for the period being budgeted, use preliminary rates to calculate anticipated fringe benefit costs in the fiscal year(s) beyond the current fiscal year.
Once available, fringe benefit rates charged to an award and invoiced to a sponsor shall reflect the approved/negotiated rates for that fiscal year.
Responsibilities
Principal Investigator/or their Delegate
Prepares proposal budget consistent with rates as set out in this GIM.
Campus Unit eGC1 Approvers
Reviews proposal budget for consistency with the rates, this GIM, and GIM 1.
Office of Sponsored Programs
Communicates with sponsor as needed for clarification of effective date of rates and application of rates in proposal budget.
Grant and Contract Accounting
Communicates with sponsor if there are questions on cost of benefit rates in invoicing or financial reports.
Related Resources
- Financial Accounting Payroll Load Rate Explanation
- Campus Benefit Rates
- UW SAGE Support – SAGE Budget Salary and Benefit Costs
Contacts
Office of Sponsored Programs, osp@uw.edu
Grant & Contract Accounting, gcahelp@uw.edu
Change Notes
Details on changes to this GIM are available from the Office of Sponsored Programs, osp@uw.edu