Fringe Benefit Charges
The Office of Financial and Cost Analysis is responsible for setting the
charges used for recovering the cost of employee fringe benefits.
Michigan State University uses the specific identification (SI) fringe
benefit model to recover the cost of fringe benefits from employing
departments. This method will be applied to all MSU accounts, excluding
General Fund (11-xxxx) which will remain funded centrally. Under this
model, costs are specifically identified into four categories and will
be distributed to the employee’s base salary (SAL, CTS , REG and TSS).
The categories are:
- Health/dental/Rx will be charged via a fixed dollar amount
if employee is eligible for health benefits. The amount
charged will correlate with employee’s level of effort
(full-time, ¾, or 1/2 ).
- MSU retirement (10%) if the employee is eligible AND
participates.
- Miscellaneous category (2.0%) which includes unemployment
compensation, workers’ compensation, long-term disability,
longevity, life insurance, and employee tuition reimbursement.
- FICA 7.65% up to salary cap and 1.45% thereafter.
Payroll types other than base and those employees working less than
50% will only be charged FICA as appropriate.
If further clarification is needed, please call Sue VanCamp at 355-5029,
ext. 8 or send an email to:
vancamps@ctlr.msu.edu.
For more information, please select one of the following: