Fringe Benefits

The term "fringe benefits" refers to non-wage expenses paid by an employer on behalf of their employees. These expenses include insurance premium sharing, retiree premium sharing, employer matching Social Security (OASDI) and Medicare, Teacher Retirement System (TRS) and Optional Retirement Program (ORP) matching, as well as assessments for Unemployment Compensation Insurance (UCI), Workers' Compensation Insurance (WCI), and vacation and sick leave.

Annual Review

Fringe benefit rates are determined by Accounting and Financial Management, based on yearly analysis of the university’s actual fringe benefit costs.

Pooled Fringe Rates

Beginning in September 2018, the university implemented a pooled fringe rate model. This change will have no impact on the individual employee’s benefit costs.

For fiscal year 2018-19, rates are based on an employee’s status of full-time, part-time, and eligibility for benefits.

Fringe Benefit Rates

2018-19 Fiscal Year

Employee Status

Object Code

Pooled Fringe Rate

Full-Time Benefits Eligible

1100

29.00%

Part-Time Benefits Eligible

1100

39.60%

Benefits Ineligible

1100

5.80%

Additional Information

  • The departmental pooled fringe assessment is calculated by multiplying the applicable rate on all components of gross pay paid through payroll, as well as any taxable fringe benefit added to an employee's pay. A complete list of earnings and taxable fringe benefits subject to the pooled fringe assessment can be found here.
  • Fringe Benefit expenditures will be charged to the same account as the salary, except in situations where a special fringe account has been established.
  • The Full-Time Benefits Eligible rate is assessed for all benefits eligible academic graduate students.

For fiscal year 2019-20, rates will be based only on an employee’s eligibility for benefits.

Fringe Benefit Rates – 2019-20 Fiscal Year

Employee Status

Object Code

Pooled Fringe Rate

Benefits Eligible

1100

29.8%

Benefits Ineligible

1100

5.1%

For more information about pooled fringes, please see the  Basics Fact Sheet or the Sept & Oct Guidance Sheet.  

Any questions regarding pooled fringe can be directed to pooledfringe@austin.utexas.edu.

Centrally Funded Fringes (CFF) and Longevity

 New Beginning with the Sept. 2018 pay period, accounts that are designated as centrally funded, will be provided funds by the Budget Office to cover both fringe and longevity pay by the Budget Office. This "reimbursement” process is similar to what occurred in previous fiscal years; however, the new process will use the object codes displayed below.

Fringes – Educational and General Accounts
      1100 – Pooled Fringes
      9039 – Transfer Fringe (Budget)

Fringes – Non-Educational and General Accounts
      1100 – Pooled Fringes
      9021 – Budgeted Expenditure Adjustment

Longevity – Educational and General Accounts
      1135 – Longevity Pay
      9033 – Longevity Reimbursement State

Longevity – Non-Educational and General Accounts
      1135 – Longevity Pay
      9021 – Budgeted Expenditure Adjustment

Fringe Benefit Expenditures

 New for Sept. 2018, fringes will be paid from salary accounts. A few exceptions for special fringe accounts has been established, as directed by the Office of Sponsored Projects, or the Budget Office.

Fringe benefit expenditures for the months of September and October will continue to be posted to accounts once per month on or about the fifth working day of the month during the payroll month-end closeout process. There is one amount posted per fringe type per account. Detailed fringe information for a unit code or account can be viewed using the web tools below in UT Direct:

Fringe Encumbrance

 New for the Sept. and Oct. 2018 pay periods, fringes will not be encumbered during the interim fiscal year period before Workday Go-Live. The fringe encumbrance process will resume in November.

Prior Fiscal Year Fringe Benefit Rates

Workday cloud and UT Tower

HR and Payroll will be operating out of Workday beginning with the November 2018 pay period. Some fringe related changes that will be forthcoming in Workday include:

Workday Logo Fringes will be charged to departmental accounts after each completed payroll

Workday Logo Fringe Encumbrances will be liquidated according to the pay period schedule


More information will be forthcoming as we work to finalize our new processes for Workday.

Please check back regularly for new announcements and page updates, which will be
occurring over the next couple of months prior to Workday Go-Live.

Workday Logo

 

 

Last updated 5/24/2019