Employee Fringe Benefit Information and Guidance

Fringe Benefit Costs

If a proposal budget requests project personnel salaries and wages, the budget must also request the fringe benefit costs associated with the salaries and wages.

Calculation Method

Each proposal must be consistent in the method used to calcuate fringe benefit rates; therefore, actual fringe benefit rates should be used as they offer the highest degree of accuracy. Use the composite fringe benefit rates listed below for "to be named" positions (defined below) or when an employee's actual fringe benefit rate is not known (e.g., budgeting fringe benefits for a new employee).

All fringe beneift rates (actual or composite) are expressed as a percent of salary. Therefore, to calculate fringe benefit costs, multiply the salary requested for each employee by the applicable fringe benefit rate.

Do not escalate fringe benefit rates from year to year in multiyear budgets. Fringe benefit rates remain stable as a percentage of the requested salary.

"To Be Named" Positions

A "to be named" position is a position or role on a project where the person who will undertake the responsibilities and activities of that position or role is not known at the time of budget preparation. Even if actual fringe benefit rates are used to calculate the costs for all other personnel, use the appropriate composite employee benefit rate listed below for the "to be named" position. Disclose the composite rate used in the budget justification and explain the deviation from use of actual fringe benefit rates.

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Employee Benefit Rate Projections

In accordance with guidance issued by the UC Office of the President, Research Administration Office and the UCR Research and Economic Development Office, use actual fringe benefit rates when estimating fringe benefit costs. Use the composite fringe benefit rates listed on the Benefits tab in the Quick Reference section of this web site when estimating fringe benefit rates for "to be named" positions, or when an employee's actual fringe benefit rate is not known (e.g., budgeting for the fringe benefits of a new employee).

Sometimes it is necessary to provide a sponsor with detailed background information regarding the composite fringe benefit rates. This information is available by contacting the Contract and Grant Officer assigned to your unit.

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