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Policies and Procedures

Policy 903 – Fringe Benefits

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

Policy Statement

Fringe benefits (fringes) are expenses directly related to an employee’s salaries and wages. The type of salary or wage being paid will determine the type of fringes that apply. Fringes are required to be budgeted on all personnel dollars for personnel accounts from 511100-514500.

The Budget Office maintains the Central Fringe Pool (Fringe Pool). The Fringe Pool provides budget for all state appropriated funds (Appropriations) for fringes for personnel accounts (511100-514500). Fringes that are covered by the Fringe Pool are SPA Premium Payments (512300), SPA Longevity Payments (512700), Retirement Supplement (552320), Disability (516200), Social Security (515100); State Retirement (515200); medical insurance (515500); TIAA Retirement (515400); Law Officers Retirement (515300).

Reason for Policy

Adequate fringe budget must be maintained by the department to meet full funding requirements of University employee salaries which includes fringe benefits.

The major benefit to the department of the central fringe pool is that the budget is not maintained by the department for state appropriated funds. It allows the University to fund changes in fringe rates without processing budget entries to every University chartfield string. When new rates apply, the pool automatically adjusts the amount of budget the account receives at month end.

A secondary benefit to departments is that the central fringe pool covers accounts 512300, 512700, 515400 and 516200 without departmental contribution. These accounts are covered using lapsed fringes within the fringe pool. Fringes associated with lapsed salaries are not returned to the department.


All other non-state funding sources are responsible for associated fringe benefits and other salary compensation expenses.

Special Situations

If a position is abolished and the department can prove that it contributed fringes to the pool for that position, the fringes (at current year rates) will be returned to the department.


  • 903.1 – Calculating Fringe Benefits
  • 903.2 – Budgeting for Fringe Benefits
  • 903.3 – Reconciling Fringe Benefits

Additional Information

Frequently Asked Questions

Q: I am using a state source and creating a budget revision that involves new personnel budget; do I need to budget for fringes?
A: Yes. If you are bringing in new salary dollars you must contribute additional fringes to the pool. If the salary dollars are not new (transferring personnel dollars to personnel dollars) then you will need to consider whether the retirement rate will change based on the new personnel line and bring in additional retirement as needed.

Q: Is there a central Fringe Pool for non-state sources?
A: No.

Q: I submitted a budget revision to increase my fringe accounts, but when the budget revision posted, my fringe accounts did not increase.
A: The increase to fringes was taken from your Department’s chartfield string to the fringe pool. View the Budget Journal ID in ConnectCarolina’s Commitment Control and you will see that the lines containing fringes were changed to fund the central Fringe Pool chartfield string.

Related Data

A chart with the current applicable fringe benefit rates is available on the Budget Office webpage. These rates pertain to State and F&A funds budgeting only.

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

Payroll and Benefits Expenses


Fringe Benefits Budget Office 919-966-3251 919-962-1453


October 1, 2014: Updated account information and terminology to correspond with ConnectCarolina.
January 11, 2012