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 (2.1%) 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.
NOTE: Grand parenting ends effective 6/30/07. Recall that for research accounts,
61-0000 - 61-9999, fringe grand parenting was created (three years ago) to provide
time for those projects that were originally budgeted using the old salary
rate-based fringe system to prepare for the conversion to the SI fringe system.
With the first payroll of 2007-08 (July 13, 2007), these accounts will now follow
all SI fringe rules. Please contact Contracts & Grants with any questions.
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: