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For any questions please send e-mail to: NDSU.Policy.Manual@ndsu.edu

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SECTION 808: ALLOWABLE COST POLICIES - FRINGE BENEFITS

SOURCE: NDSU President

1. The term "fringe benefits" covers several costs which are incurred by the University in connection with employment of various classes of personnel. Fringe benefit costs relating to employees working on a sponsored agreement are charged to the sponsored agreement in direct proportion to the salary paid. The items included in the fringe benefit category are:

   A.

   F.I.C.A. - "Social security" applies to all classes of employees except full-time graduate and undergraduate students.

   B.

   TIAA-CREF - Applies to professional employees (faculty, research associates, full-time research assistants, etc.), but does not apply to graduate students, secretarial employees, etc. The rate of university contribution varies with the length of participation in the plan.

   First two years - 4.5 percent of salary.
   Two to ten years - 9.5 percent of salary.
   Eleven or more years - 10.0 percent of salary.

   C.

   State retirement - Applies to employees eligible under Section 101 not covered by TIAA (technicians and secretarial employees). The current rate is 9.12 percent of salary.

   D.

   Unemployment compensation - Applies to all classes of employees except students.

   E.

   Workmen's compensation - Applies to all classes of employees.

   F.

   Disability insurance - Applies to all professional employees covered by TIAA.

   G.

   Life insurance - Applies to all employees eligible under Section 101.

   H.

   Health insurance - Applies to all employees eligible under Section 101.

Contact the Office of Grant and Contract Accounting for the current fringe benefit rates when preparing proposal budgets.

HISTORY: July 1990; Amended April 1992, August 2007.