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Fringe benefits (fringes) are expenses directly related to an employee’s salaries and wages. The type of salary or wage being paid will determine the type of fringes that apply. Fringes are required to be budgeted on all personnel dollars for personnel accounts from 511100-514500 and are retained in a Central Fringe Pool (Fringe Pool).

Budget, Planning and Analysis maintains the Fringe Pool, providing a budget for all state appropriated funds (Appropriations) for fringes for personnel accounts (511100-514500). Fringes that are covered by the Fringe Pool are:

  • SPA Premium Payments (512300)
  • SPA Longevity Payments (512700)
  • LEO Separation Allowance (552320)
  • Disability (516200)
  • Social Security (515100)
  • State Retirement (515200)
  • Medical Insurance (515500)
  • TIAA Retirement (515400)
  • LEO Retirement (515300)

Departments should calculate and budget fringe benefits when personnel budget is being created using non-personnel budget by referring to the policies below. At the beginning of the fiscal year, a $0 budget must be created, as the budget exception needs to have override ability in order for payroll to process. After each payroll is run, an allocation is processed to transfer fringe budgets from the pool and to roll up to each chartfield string – the amounts must net $0.

Policies and Procedures

Fringe Benefit Rates for Fiscal Year 2020-21

Fringe Rates for Calculating State Benefit Costs
Benefit Account Percent Salary
Social Security 515100 7.65% up to $142,800 (Until 1/1/22)
Medicare 1.45% over $142,800 (Until 1/1/22)
State Retirement 515200 21.68%
TIAA Retirement 515400 13.61%
Law Enforcement Officers Retirement 515300 26.68%
Medical Insurance PPO 515500 $6,512
Average Teaching Salary/Average SHRA Salary for 2020-2021
Area Type Salary
Academic Affairs 16020 EHRA $116,286
Academic Affairs 16020 SHRA $54,666
Health Affairs 16021 EHRA $154,142
Health Affairs 16021 SHRA $49,936
AHEC 16022 SHRA $56,393

For Sponsored Research Fringe Benefit Rates: See the Office of Sponsored Research.