Fringe Benefits Rates
The University of Tennessee Health Science Center FY2025 proposed fringe benefit rates by employee category were developed in compliance with OMB Circular 2 CFR Part 200.431.
The University uses employee fringe benefit rates to recover the actual cost of employee benefits from individual funding sources. The rate concept is to match a similar group of employees with the benefits provided to that group. The use of benefit rates serves to apply an average percentage to all employees within the same group. Since these rates are applied to university grants and contracts, they are subject to an annual audit by the Federal Government.
The FY2025 proposed fringe benefit predetermined rates are:
| FISCAL YEAR 2025 | |||
|---|---|---|---|
|
Employee Group |
Position Title Examples |
Fringe Benefits Rate |
Reference |
| Regular | Asst./Assoc./Professor, Post Doc., Research Staff, etc. | 35.20% | Schedule 1 |
| Medical Residents | UTHSC only | 20.30% | Schedule 1 |
|
Graduate Student Employees |
9 or 12 Month GRAs | 11.50% | Schedule 1 |
|
Temporary Employees |
Part-Time, hour workers as defined in HR0105 (not-students) | 7.90% | Schedule 1 |
|
Student Employees |
Currently enrolled students paid hourly rates in accordance with HR0105 |
1.50% | Schedule 1 |
Fringe benefits cover the University’s cost for FICA, worker’s compensation, unemployment benefits, contributions to retirement and health insurance. Actual costs per person vary depending upon the type of insurance coverage selected, type of retirement plan, and salary. Figures are approximated, based on averages. The rate includes:
- Health Insurance
- Unemployment Insurance
- Life Insurance
- OPEB
- Workers Compensation
- Employee Tuition Remission
- Retirement Contribution
- Terminal Leave
- Death Benefit - Sick Leave
- Social Security
UTHSC calculates fringe benefit rates which are then charged to sponsored project agreements so that each project (federal and non-federal) pays its fair share of these support costs.
Faculty and staff are responsible for using these rates in budgeting and planning documents, including external grant proposals which are being asked to fund employee salaries, wages and benefits. The benefit rates associated with the salary or wages paid to an employee must also follow any costing changes made within the payroll system.
The fringe benefit rates are calculated annually and negotiated with the Department of Health and Human Services (DHHS). University of Tennessee System is responsible for and will prepare and submit a proposal for future fringe rates to the federal government. This process is carried out by UT System and, when finalized, the rates are appended to UTHSC’s F&A Rate Agreement.
UNIVERSITY OF TENNESSEE SYSTEM FRINGE RATES SCHEDULE 1Helpful links