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Fringe Benefit Rates for Sponsored Programs

Fringe Benefit Rates for Sponsored Programs

Background

In addition to salary, fringe benefits are part of the compensation package provided to employees. Fringe benefits include the cost of unemployment and workers' compensation insurance, Federal Insurance Contributions Act (FICA), medical and dental insurance, group insurance, annuity, New York State disability insurance, disability income protection, tuition remission for employees, travel insurance and the operational costs of fringe benefit administration.

NYU Approach

New York University's (NYU's) Fringe Benefit Rate is negotiated with the Department of Health and Human Services (DHHS). The rate must be applied to budgeted salary amounts in proposals and to actual salary costs when directly charged to sponsored agreements.


Calculating Fringe Benefits

Calculation of Fringe Benefits charged to a Sponsored Project:

Fringe Benefits = (Monthly IBS) x (percent of Effort) x (number of months devoted to project) x (Fringe Benefit Rate)

Note: This formula will be also used to calculate the fringe benefit during the summer months.

Calculation of Fringe Benefits charged to a Sponsored Project with a Salary Cap:

Fringe Benefits with Salary Cap = (Salary Cap รท 12) x (percent of Effort) x (number of months devoted to project) x (Fringe Benefit Rate)

Note: For graduate assistants (GRAs), tuition remission is charged as a percentage of their salary instead of fringe benefits.

Paid and Unpaid Absences

Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages and are not a component of the costs covered by the fringe benefit rate.

Current Negotiated Fringe Benefit Rate

See: Colleges and Universities Rate Agreement.


Handbook Table of Contents



NYU Policy:
Fringe Benefit Rates for Sponsored Programs

Full Policy & Downloadable PDF available at the University Policy Website.

Read the Policy



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