1)

Fringe Benefits

File Finder
Use the File Finder tool to locate documents related to proposal development such as forms and
official policies and procedures.
o

F&A and Fringe Rate Agreement

GSURF Fact Sheet

Fringe Rates by ADP Paycode

Budget Spreadsheet

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, workers
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

Overview
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, employees ADP paycode, to

actual salary expense. The flat fringe rate is charged to regular salary as well as salary stipends,
extra pay (i.e. overtime) and extra compensation.

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.
The part-time employees (faculty & staff) category includes: part-time faculty, salaried working
retiree, temporary salaried, and temporary staff.
The graduate assistants category includes: all graduate students that have an appointment as a
Graduate Teaching Assistant, Graduate Research Assistant, or Graduate Laboratory Assistant.

Please note
Student assistants, Federal Work Study, and Special Work Study students are NOT included in any
of the above employee categories therefore, NONE of the fringe rates apply to these employee
types.

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 (A21). 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), PartTime 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.