Payroll Office: Fringe Benefit Information
Definition: Fringe Benefits are payroll Employer Paid Expenses while employing an employee above the employee's salary or wage compensation. Â Fringe Benefits are charged proportionally to the funding tied to the Combo Codes provided to Budget via the Department Budget Table funding process.
For budgeting purposes only, you may estimate your department's Fringe Benefit expense by the following categories.
Benefit Eligible Employees: Multiply Total Compensation by each row of benefit rates for Lines 1, 2, 3, 4, 5, and add product of $1,056.10 multiplied by the number of months of employment for the academic year for Line 6. Apply Line 7 if applicable, and sum all products.
Non-benefit Employees: Multiply Total Compensation by each row or benefit rates for Lines 1, 3, and 4, and sum all products.
Student Employees: Multiply Total Compensation by each row or benefit rates for Lines 1, and 4, and sum all products. Qualified students during an enrollment period month may be exempt from OASI, Line 1.
| Line | Benefit | Rate | Limits | |||
|---|---|---|---|---|---|---|
1 |
OASI | 6.20% (0.062) Social Security 1.45% (0.01450) Medicare 7.65% (0.0765) Total OASI |
Social Security Wage Base $128,400 (effective 01/01/18) No Limit for Medicare tax |
|||
2 |
Retirement |
Regular Employees
|
Wage Base $275,000 | |||
3 |
Unemployment Compensation Insurance (UCI) | .507% (0.00507) – Effective 09/01/2018 Rate is subject to change without notice to fund unemployment claims. |
Wage Base $9,000 | |||
4 |
Workers Compensation Insurance (WCI) | 0.181% (0.00181) – Effective 09/01/2018 | No Limit | |||
5 |
Vacation Sick Leave (VSL) | 1.20% (0.012) – Effective Date 9/1/2018 | No Limit | |||
6 |
Premium Sharing Rates
Only for employees in Benefits' Eligible Positions
FTE = sum of Full Time Equivalent ratio of all job assignments
|
Insurance Coverage Employee's FTE |
Employee Only |
Employee & |
Employee & |
Employee & |
| Effective 9/1/18 FTE: 0.75 to 1.0 |
$598.14 | $911.69 | $798.76 | $1,114.18 | ||
| Effective 9/1/18 FTE 0.5 to 0.749 |
$299.07 | $455.85 | $399.38 | $557.09 | ||
7 |
University Salary Supplement* | USS | None | $50.00 | $75.00 | $125.00 |
| *University Salary Supplement (USS) only applies to selected grandfathered active employees with medical coverage premiums meeting Supplemental Premium Sharing allowance prior to 9/1/2003. Employee is no longer eligible for USS allowance, if employee reduces medical coverage level to Employee Only or receives a salary increase to $50,000 or above. Once employee becomes ineligible for USS allowance, employee is considered ineligible from date of first ineligibility. | ||||||