UNCW Fringe Benefits Explanation & Calculation FY 2011‐2012 The fringe benefit rate will be expressed in your proposed project budget as a percentage of salary. The dollar amount is calculated by applying the appropriate fringe benefit percentage rate to each employee’s salary. The rate varies depending on the classification of the employee (faculty/staff or student) and the salary of the employee since health insurance is a static rate per year and not a function of an employee’s salary. The chart below is an example of how to calculate your fringe benefit rate. If you need help with your fringe benefits in your proposal, please contact the Grant Development Specialist for support. Faculty/Permanent Staff Description 2011‐
2012 7.65% Social Security Notes Paid at 7.65% on the first $106,800 then 1.45% on all wages in excess of $106,800 Health Insurance $4,931 The cost to the University for health care is the same for all employees. The percent used for budget is $4,931 divided by salary. Retirement 12.57% 1% UNCW Budget Office encourages PI’s to use the “Blended EPA Rate” to budget your retirement expenses. Applicable to all employees Workers’ Compensation & Unemployment Compensation Total Example (Based on $55,000 annual salary) $55,000 × 7.65% = $4,208
$4,931 ൊ $55,000 = 9%
$55,000 × 12.57% = $6,914
$55,000 × 1% = $550
30% or $16,603
Temporary Employee/Student Description Social Security Workers’ Compensation & Unemployment Compensation Total 2011‐2012 Notes 7.65% Paid at 7.65% on the first $106,800 then 1.45% on all wages in excess of $106,800 1% Applicable to all employees Example (Based on $14,000 income) $14,000 × 7.65% = $1,071
$14,000 × 1% = $140
8.65% or $1,211
Source: UNCW Budget Office http://www.uncw.edu/ba/finance/Budget/budget_resources_benefits.html