Fringe Benefit Rates for Sponsored Programs
Handbook Section and Topic Page Links
Section 1: Introduction
Section 2: Proposal and Budget Development
- Charging Administrative Expenses
- Accounting for Unallowable Costs
- Application of Facilities and Administrative (F&A) Cost Rates
- Facilities and Administrative (F&A) Cost Waivers
- Personnel Costs
- Fringe Benefit Rates
- Institutional Base Salary
- Cost Sharing
Section 3: Managing Awards
- Opening or Modifying a Project
- Prior Approvals
- No-Cost Extension
- Cost Transfers
- Effort Reporting
- Salary Cap Administration
- Program Income
- Clinical Trials Financial Management
- Managing Sponsor Payments
Section 4: Travel and Procurement
- Domestic and Foreign Travel
- Memberships, Subscriptions, and Professional Activities
- Managing Subawards
- Small Business Program
- Managing Equipment Acquired with Federal Funding
- Recharge Center Policy
Section 5 Closing an Award
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.
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.
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 ÷ 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.
Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages and are claimed on grants, contracts and other projects as part of the normal cost for salaries and wages. Unpaid sabbatical and research leave of absences may not be charged to sponsored projects.
Negotiated with the Division of Cost Allocation, the Department of Health and Human Services.
SPA 004: Personnel and Benefits
Open SPA 004: Personnel and Benefits in iLearn (NYUHome login required)
This learning module will cover the following policies as outlined in the SPA Handbook:
- Personnel Costs for Sponsored Programs
- Fringe Benefit Rates for Sponsored Programs
Duration: 7:00 minutes