Effective Date: |
January 29, 2019 |
Function: |
Human Resources |
Contact: |
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.
This procedure defines the fringe benefit rates that are available, and the process for applying the appropriate fringe benefit rate to an employee.
Rates for each of the following categories are applied to all salaries and wages, including hourly pay.
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.
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:
Effective July 1, 2019 there will be a new fringe benefit rate established for post-doctoral 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:
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.
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.
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.
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.
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 |
|
None.
Fringe Benefits Cost Recovery Policy
None.
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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