Georgia State University offers eligible employees various fringe benefits which includes, but is not limited to health insurance, life insurance, flexible spending accounts, retirement plans, worker’s compensation, and unemployment.The Fringe Benefits Rates used by Georgia State and charged to sponsors includes only the employer portion (Georgia State share) of the costs. These rates do not change employee benefit plans or enrollments. For information regarding employee benefit plans or enrollments visit: http://employees.hr.gsu.edu/benefits/
Georgia State University fringe benefit rates
|Employee Type||Fiscal Year 2014||Fiscal Year 2015|
|Full-Time Employees (Faculty & Staff)||29.9%||31.5%|
|Part-Time Employees (Faculty & Staff)||1.0%||1.1%|
|Graduate Assistants (GRA/GTA)||1.4%||1.9%|
Overview of flat fringe rates
Effective July 1, 2011 Georgia State University established flat fringe benefit rates for each of the major employee groups at the campus. These flat fringe rates will be reviewed and approved annually by the Department of Health and Human Services. Fringe benefit expenses are determined by applying the appropriate percentage based on employee category to actual salary expense.
Benefits included in fringe benefits rates
The Full-Time Employees (Faculty & Staff) rate includes the following fringe benefits: FICA, Health, Life, Retirement, Workers Compensation, Unemployment Compensation, Tuition Assistance Program, Flex Spending, MARTA/GRTA Subsidy, Vacation Payout, and Leave Programs.
The Part-time employees (Faculty & Staff) rate includes the following fringe benefits: FICA, Workers Compensation, Unemployment Compensation, and MARTA/GRTA Subsidy.
The Graduate assistants rate includes the following fringe benefit: GRA/GTA Health Insurance.
Employee category descriptions
The full-time employees (Faculty & Staff) category includes: 9 month faculty, 12 month faculty, summer faculty, 12 month staff, 10 month staff, 10 month salaried, and 12 month salaried (except working retiree) employees. Additionally, an individual must be appointed to a regular faculty or staff position that has an anticipated duration of greater than six months, and works at least 30 hours a week (.75 EFT or greater for staff and .56 EFT or greater for academic year faculty).
The part-time employees (faculty & staff) category includes: part-time faculty, salaried working retiree, temporary salaried, and temporary staff. Additionally, if academic faculty is less than .56 EFT or staff/salaried (10 month or 12 month) is less than .75 EFT, they would be included in the part-time employee category as well.
The graduate assistants category includes: all graduate students that have an appointment as a Graduate Teaching Assistant, Graduate Research Assistant, or Graduate Laboratory Assistant.
How are fringe benefits calculated
Georgia State University (GSU) uses multiple fringe benefit rates developed under the requirements of Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions (A-21). Starting July 1, 2011, Georgia State began using three separate flat fringe rates for different categories of employees. To arrive at these employee categories, a review was made of the fringe benefit eligibility for each class of Georgia State employees. Employees are grouped into three categories of fringe benefit eligibility, which are Full-Time Employees (both Faculty and Staff), Part-Time Employees (both Faculty and Staff), and Graduate Assistants (GRA/GTA).
A fringe benefit rate for each employee category is calculated by the development of a pool of fringe benefits costs (the numerator) and of a salary and wage base (denominator). The pool consists of costs for the benefits provided to a particular category of employees. When the pool is divided by the base applicable to that category of employees, a rate results; this rate represents the percentage that must be added to employees’ salary and wage dollars.
The fringe benefit rate for each employee group will be reviewed annually to ensure an accurate allocation. Any over or under recovery of actual fringe benefit costs will be adjusted in the next rate calculation.
Graduate students on academic appointment receive a waiver of some portion of their tuition costs. These costs are excluded from the fringe benefit rate calculation.
Why change fringe rates
Overall, this methodology for calculating and charging fringe benefits is considered a best practice at leading research institutions. Several large research universities have already adopted this practice including, Georgia Institute of Technology, State University of New York, Emory University, and University of Florida. Additionally many universities are now switching to this methodology including, Arizona State University, University of California Davis, Auburn University, Vanderbilt University, and Clemson University.
This new fringe methodology will facilitate planning, budgeting, and other tasks in the ongoing operations of the campus. It will simplify and improve the preparation, administration, and monitoring of budgets and accounting for fringe benefit expenditures. Provide for consistent accumulation and allocation of fringe benefits expenses to all functional activities as required by Cost Accounting Standards 501 and 502. Also, allow the university the opportunity to recover fringe benefit costs from all funding sources.
How often will fringe rates change
Georgia State will have new fringe benefits rates each fiscal year. Fringe benefit rates for each employee group will be reviewed annually to ensure an accurate allocation. Any over or under recovery of actual fringe benefit costs will be adjusted in the next rate calculation.