Fringe Benefits Cost Rates

Policy No: 
3.16
Type of Policy: 
Administrative
Effective Date: 
December 2014
Last Revised: 
December 2014
Review Date: 
July 2015
Policy Owner: 
Office of Grants and Contracts Accounting
Contact Name: 
Sandra Mason
Contact Title: 
Senior Director
Contact Email: 
sandy.mason@business.gatech.edu
Reason for Policy: 

Georgia Institute of Technology/Georgia Tech Research Corporation utilizes Institute and Sponsor-Funded Fringe Benefits rates to charge benefiting activities for the cost of all employees’ fringe benefits. This policy reduces the amount of accounting required to accurately distribute fringe benefits expenses to benefiting activities.

Policy Statement: 

This cost accounting policy is based on OMB Uniform Administrative Requirements, Section 200.431 (2 CFR 200) which states: “except as provided elsewhere, the costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, employee agreement, or an established policy of the institution”.

Scope: 

This policy is applicable to all employees eligible for Institute fringe benefits.

Procedures: 

Institute and Sponsor-Funded Fringe Benefits rates are determined on an annual basis according to the provisions of 2 CFR 200, and audits by the Defense Contract Audit Agency (DCAA), with negotiation and approval of rates by the Department of Navy, Office of Naval Research (ONR). Upon approval by ONR, rates are used to charge fringe benefits expenses to institute-funded and sponsor-funded activities and projects during the fiscal year. Following the end of the fiscal year, the actual fringe benefits rates are determined. If Fringe Benefits rates have been approved on a “Fixed with Carry-forward Basis”, any amount of over or under-recovery of expense is incorporated into the next fringe benefits rate proposal. This procedure provides for the collection or repayment of any over or under-recovery of fringe benefit expenses.

The following benefits are included in the Institute and Sponsor-Funded Fringe Benefits rates for the academic units of Georgia Tech (excluding GTRI):

  • Social Security
  • Life Insurance
  • Health Insurance
  • Retirement
  • Termination Vacation Leave
  • Other Non-Payroll Benefit Expenses – Includes Worker’s Compensation, Unemployment Compensation, Retiree Group Insurance

Types of Fringe Benefits Rates
Five Personal Services Cost Groups have been identified for purposes of determining and applying the fringe benefits rates. The classes of employees and types of payments included in each of the five groups are as follows:

1. Partial Benefits - Social Security Benefits only; Covered employees include

a. Temporary classified persons
b. Temporary academic or research professionals not eligible for retirement, health insurance, and life insurance programs or not electing coverage under the plans
c. Part-time employees employed for less than 50% of a full work schedule
d. Additional compensation payments not covered by retirement programs
e. Other payments to employees to cover moving expenses, awards, termination pay and other miscellaneous payments not covered by retirement programs

2. Full Fringe Benefits - All Benefits noted above; Covered employees include:

a. Regular full-time faculty
b. Principal Investigators
c. Professional and administrative staff
d. Joint staff
e. Temporary academic or research professionals covered by applicable retirement, health insurance, and life insurance programs
f. Bi-weekly permanent employees
g. Part-time employees employed for at least 75% of a full work schedule

3. Limited Benefits – Social Security, Retirement, Termination Vacation Leave, and Other Non-Payroll Benefits; Covered employees are those employed for at least 50%, but less than 75% of a full work schedule, including:

a. Regular faculty
b. Principal Investigators
c. Professional and administrative staff
d. Joint staff
e. Temporary academic or research professionals covered by applicable retirement programs
f. Bi-weekly permanent employees

4. Graduate Student Health Insurance - Covered employees include:

a. Graduate Research/Teaching Assistants who qualify for the graduate tuition remission award. See G&C Policy 3.17 “Graduate Student Tuition Remission Program” for additional information on qualifications.

5. No Benefits – Applicable to all other student employees enrolled full-time and working less than 20 hours per week.

Responsibilities: 
Contact the Grants and Contracts Accounting Department at gc.ask@business.gatech.edu for additional guidance related to Fringe Benefits rates at Georgia Tech.
Enforcement: 
To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508
Policy History: 
Revision DateAuthorDescription
12-08-2014Office of Grants & Contracts AccountingAlign with requirements of 2 CFR 200
04-01-2012Office of Grants & Contracts AccountingAdministrative review
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