 |
August
5,1999
|
|
| THE
UNIVERSITY OF NORTH CAROLINA
AT CHAPEL HILL |
||
| Office of Business and Finance | CB#
1000, 300 South Building
University of North Carolina at Chapel Hill Chapel Hill, N.C. 27599-1000 |
|
| MEMORANDUM |
|
August
5,1999
|
|
| THE
UNIVERSITY OF NORTH CAROLINA
AT CHAPEL HILL |
||
| Office of Business and Finance | CB#
1000, 300 South Building
University of North Carolina at Chapel Hill Chapel Hill, N.C. 27599-1000 |
|
| MEMORANDUM |
| TO: | Deans, Directors, and Department Heads |
| FROM: | Roger D. Patterson
Associate Vice Chancellor for Finance |
| DATE: | August 3, 1999 |
| SUBJECT: | Fringe Benefit Rates for Use in Research and Training Proposals |
The following fringe benefit rates are applicable to Research and Training proposals and should be utilized until further notice.
Combined Fringe Benefit Rate
In preparing cost proposals, there are always uncertainties as to specific project staffing and fringe benefit costs in future years. Accordingly, it is generally more appropriate to apply a combined fringe benefit rate of 19% to cover Social Security, Retirement (State and Optional Retirement Plans), severance pay, and other fringe benefits. The rate, which varies slightly from the sum of the individual components, should be applied to the total estimated salary and wages subject to such contributions without regard to existing taxable salary base limitations.
Experience has shown that use of the combined rate in this manner will reasonably approximate future fringe benefit costs. Please note that this combined rate does not include Hospital-Medical or other Health Insurance contributions. Should for some reason the use of the combined rate be considered 'inadequate or should a sponsor 'insist upon precise adherence to current limitations in a given situation, fringe benefits may be costed out by individual elements.
Hospital-Medical
| Comprehensive Major Medical (Object Code 1832) | |
| HMO/Health Plans (Object Code 1833) | |
| Employer contribution | $ 187.98 per month |
| ($2,255.76 per year) |
Other
Health Insurance
| Postdoctoral Research Associates (Object Code 1831) |
$ 109.33 per month
($1,311.96 per year) |
| Postdoctoral Trainees (Object Code 4518) |
$ 109.33 per month ($1,311.96 per year)
|
| Graduate Student Health Insurance
(Object Codes 1836 and 6596) |
$ 69.33 per month
($ 832. per year) |
The Hospital-Medical and other Health Insurance contributions should usually be stated separately in a proposal. The combined rate discussed above does not include the Hospital-Medical contribution.
Where specific components of fringe benefits must be addressed in a proposal, the following rates apply:
Social
Security (Object Code 1812)
| For the Old Age, Survivors and Disability Income portion (OASDI) | |
| Calendar Year 1998: | |
| Taxable salary base (maximum) | $68,400 |
| Contribution rate | 6.2% |
| Maximum contribution | $4,241 |
| Calendar Year 1999: | |
| Taxable salary base (maximum) | $72,600 |
| Contribution rate | 6.2% |
| Maximum contribution | $4,501 |
Social
Security (Object Code 1813)
| For the Medicare Portion | |
| Calendar Years 1998 and 1999: | |
| Taxable salary base (maximum) | no limit |
| Contribution rate | 1.45% |
State.Retirement
(Obiect Code 1822)
| Salary base: Gross wages paid by UNC-CH | |
| Compensation subject to retirement (maximum) | |
| Employed prior to 7/1/96 | $260,000 |
| Employed on or after 7/1/96 | $160,000 |
| Contribution rate | 10.10% |
Optional
Retirement Programs
| TIAA (Object Code 1872) | |
| Lincoln National (Object Code 1874) | |
| VALIC (Object Code 1875) | |
| Salary base: Gross wages paid by UNC-CH | |
| Compensation subject to retirement (maximum) | |
| Employed prior to 7/1/96 | $260,000 |
| Employed on or after 7/1/96 | $160,000 |
| Employer Contribution paid to ORP | 6.84% |
| Health and Disability Benefits (Object Code 1873) | 2.52% |
| Overall Contribution rate: | 9.36% |
Severance
Pay (Object Code 1251)
| Salary base: SPA Salaries paid from Non-State Funds | |
| (only object codes 12 1 x) | 0.2% |
Composite Benefit Fund (Object Code 1892)
Covers
unemployment, workers compensation, short-term disability pay, and health
'insurance while on professional leave.
| Salary base: EPA and SPA salaries paid from Non-State Funds | |
| (object codes I lxx, 12xx, 13xx, and 14xx) | |
| Contribution rate through December 31, 1998 | 0.3% |
| Contribution rate effective January 1, 1999 | 0.2% |
Fringe
benefit rates are also published 'in the Contracts and Grants section of
the Business Manual (Appendix 3), together with indirect cost rates. This
information is also available on the Contracts and Grants Home Page on
the World Wide Web. The Contracts and Grants Home Page can be accessed
through the UNC Home Page 'in the Campus Sites and Services section under
the Academic and Administrative Units heading.
If you
have any questions please call Kent Walker, Contracts & Grants, at
962-1353.