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Policies and Procedures

Procedure 903.1 – Calculating Fringe Benefits

Effective
January 11, 2012
Last Updated
October 1, 2014
Last Reviewed
October 1, 2014
Responsible University Officer
Director of Budget Office
Responsible Unit
Budget Office

Procedure Statement

Fringe benefits should be calculated and budgeted when personnel budget is being created using non-personnel budget.

Forms and Instructions

Social Security (515100) - Social Security Benefits are comprised of two variable rates -- OASDI for the Old Age, Survivors and Disability Insurance (515120) and Medicare (515130). To calculate the rate for OASDI (515120) subtract the annual salary from the current Federal Medicare cap to calculate the salary amount above the cap. Multiply the salary amount below the cap by the social security rate and then multiply the amount above the cap by the Medicare rate only. Add these two amounts together to get the total for 515100.

Retirement (515200, 515400, 515300) - State Retirement (515200) is for permanent SPA employees. Permanent EPA employees have an option to select the State Retirement Plan (515200) or the TIAA Optional Retirement Plan (515400). Law Enforcement Officer (LEO) (515300) is for Law Enforcement employees only. To calculate the retirement rate, multiply the annual salary by the respective retirement rate.

Medical Insurance (515500) - Multiply the FTE amount by the medical insurance rate. If the person will only work a portion of the year, divide the amount calculated above by 12 months, then multiply that result by the number of months the person will work in the fiscal year. This procedure must be done for each source of funding for the employee.

Related Data

Current applicable fringe rates are available on the Budget Office page.

Rates that should be used for Grants are available from the Office of Sponsored Research website.

History

Revised:
October 1, 2014: Updated account numbers for ConnectCarolina system.
January 11, 2012