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

Pooled Fringe Rates

Fringe Benefit Rates

2020-21 Fiscal Year

Employee Status

Object Code

Pooled Fringe Rate

Benefits Eligible

1100

30.1%

Benefits Ineligible

1100

5.68%

 

Fringe Benefit Rates

2019-20 Fiscal Year

Employee Status

Object Code

Pooled Fringe Rate

Benefits Eligible

1100

29.8%

Benefits Ineligible

1100

5.1%

 

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.
  • The Office of Sponsored Projects Fringe Rates & Guidelines page contains more information about Fringe Benefits related to sponsored projects. 

 

Annual Review

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

Centrally Funded Fringes (CFF) and Longevity

Accounts that are designated as centrally funded will be reimbursed using the following object codes:

Fringes – CFF Accounts
      1100 – Pooled Fringes (Payroll Fringe Expense)
      1158 – Fringe Reimbursement (Contra Expense)

Longevity – CFF Accounts
      1135 – Longevity Pay (Payroll Fringe Expense)
      1157 – Longevity Reimbursement (Contra Expense)

Fringe Benefit Expenditures & Encumbrances

Detailed fringe information for a unit code or account can be viewed using the web tools below in UT Direct:

Prior Fiscal Year Fringe Benefit Rates

Contact

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

 


 

 

Last updated 02/02/2021