Fringe Benefit Administration

Effective Date:

January 29, 2019

Function:

Human Resources

Contact:

Kate Malia

Basis for Procedure

The Research Foundation recovers the funds needed to cover the cost of employee fringe benefit programs by applying fringe benefit rates as compensation costs are incurred. Rates must be reasonably derived, consistently applied, and in conformity with applicable regulations.

Procedure Summary

This procedure defines the fringe benefit rates that are available, and the process for applying the appropriate fringe benefit rate to an employee.

Administering the Rate

Rates for each of the following categories are applied to all salaries and wages, including hourly pay.

Regular Employees

The regular employee fringe benefit rate is used to calculate fringe benefit charges for all employee salaries (including hourly-paid), except those paid to full-time SUNY students appointed to specific titles, SUNY employees in IFR appointments, employees appointed to a postdoctoral position (effective July 1, 2019) and to employees in summer-only appointments.

SUNY Graduate and Undergraduate Students

The appropriate graduate or undergraduate student fringe benefit rate is used to calculate fringe benefit charges for the salaries of SUNY students appointed to the following titles:

Post-Doctoral Employees

Effective July 1, 2019 there will be a new fringe benefit rate established for post-doctoral employees.

Summer-Only Employees

The summer-only fringe benefit rate is used to calculate fringe benefit charges for all summer-only employees. The rate applies to an employee when the employee is appointed to one of the following categories:

IFR (Income Fund Reimbursable) Appointments

The New York State employee fringe benefit rate is used in calculating the fringe benefit amount for IFR resulting from SUNY faculty and staff effort working on Research Foundation awards. Since there are no separate New York State fringe benefit rates for graduate and undergraduate students, fringe benefit costs for graduate and undergraduate students are not included in cost participation calculations.

Note: Our cognizant agency (DHHS) only allows the Federal rate to be charged for RF activity for consistency purposes because the majority of our awards are from Federal funding sources.

Cost Sharing

The New York State fringe benefit rate is used in calculating the fringe benefit amount for cost participation resulting from SUNY faculty and staff effort. Since there are no New York State fringe benefit rates for graduate and undergraduate students, fringe benefit costs for graduate and undergraduate students are not included in cost participation calculations.

Administering Budgets

The approved fringe benefit rates for each fiscal year must be used to develop budgets for sponsored program applications.

When budgeting for future fiscal years when the rate is not yet known, the approach described in the “Budgeting with the Rates” section of the Current Fiscal Year’s Fringe Benefit Rates is recommended. Future year(s) rates are estimates and are subject to change. The rates are used for encumbering future year(s) costs in the business system, and for submitting sponsored program applications.

Expenditure (Account) Records

Existing Actual and Encumbrance Records

When a fringe benefit rate changes, existing encumbrance and actual expenditure records, except vacation, sick, and severance actual and encumbrance expenditures, are updated in the business system to reflect the new rate. The system updates are effective for the payroll period in which the new rate goes into effect. The business system uses the expenditure item date when calculating the fringe benefit rate.

New Awards

The fringe benefit rates for the current fiscal year are automatically generated when new awards are established. Fringe benefit rates, once in use, cannot be changed.

Charging of Fringe Benefits to Campus Unrestricted Award

Per the Fringe Benefits Cost Recovery Policy, fringe benefit costs may not be waived. However, campuses may choose to cover the fringe benefit cost for an individual with campus funds, and charge to an unrestricted award.

Procedure for Charging Fringe Benefit Costs to Campus Unrestricted Award

Step

Role or Responsibility

References or Tips

Send detailed e-mail to payroll @rfsuny.org to have excess charges moved to an Unrestricted award.

Campus/CO Payroll Staff

 

Definitions

None.

Related Information

Fringe Benefits Rates

Fringe Benefits Cost Recovery Policy

Forms

None.

Change History

Date

Summary of Change

January 29, 2019

Created new procedure document separating guidance and process language from the Fringe Benefits Cost Recovery Policy.

 

 

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