Fringe benefits (FB) are employee associated costs such as health plan expenses,
pension plan expenses and workman's compensation expenses, among others. These
costs are expressed as a rate by employee class. The rate is the pooled costs
of these benefits divided by the total salaries in each employee class. These
rates are then applied to the applicable employee salary to represent the
associated benefits for that type of employee.
Our sponsors will reimburse us for fringe benefit costs, expressed as a percentage
of total salaries. As salaries and FB can represent the largest component
of cost on a given project, the University negotiates its FB rates with the
federal government on an annual basis.
