TUC Sponsored Programs

Benefit Rates

Benefit Rates

1. Change of Method

Beginning July 1, 2007 The University Corporation is employing a new method of charging benefit costs for employees of sponsored programs.

Old Method
Until June 30, 2007, the actual benefit costs incurred for each employee were charged to sponsored programs. As a result benefits were budgeted in account 602000 Benefits, and actual expenditures were charged to the accounts 602110 Payroll Taxes, 602210 Workers Compensation, and 602220 Unemployment.

New Method
Beginning July 1, 2007, The University Corporation will charge benefits cost to sponsored programs as a percentage of salaries and wages.

Transition during Project Period
Benefit costs will be charged according to the new method as of July 1, 2007. There will be no retroactive adjustments for previous periods in open projects. As a result, projects with start dates before June 30, 2007 and an end date after June 30 2007, will be charged benefits under two different methods. For payroll periods before June 30, 2007 benefits will be charged according to the old 'Actual Benefit Cost' method. For payroll periods after June 30, 2007 benefits will be charged according to the new 'Benefit Rate' method.

Advantages of the New Method
This new, more common allocation method significantly simplifies revisions and corrections of personnel costs and the tracking of benefits costs for Principal Investigators and Research Administrators. It also allows for the more precise budgeting for benefit expenses.

Preparation of Future Project Budgets
The Office of Research and Sponsored Programs (ORSP) will assist you in using the new benefit rates in preparing any budgets for future grant applications.

No Action Required by Principal Investigators and Research Administrators
TUC will implement the new method. At this time, there is no additional action required by Principal Investigators and Research Administrators. However, when reallocating personnel expenditures to and from projects, it is important to determine in which period the expenditures were recorded and which benefit method was used, since the same method must be used for reallocating expenditures.

2. Current Benefit Rates (valid as of March 1, 2017)

Covered Benefits:Taxes & Mandatory
Insurances
Retirement 
Benefits
Health Benefits
Eligibility CriteriaApplied RatesFICAUnemploymentWorkers
Comp.
RetirementPost
Retirement
Medical
Health
Insurance
Dental
Plan
Vision
Plan
Life
Insurance
Employee Receiving No BenefitsRate 1
7.3%
  
         
Students w/o ppointment &<4hrs/day XX      
Students w/ appointment or > 4hr/dayXXX      
Casual AppointmentsXXX      
Temporary AppointmentsXXX      
Salary < 6 monthXXX      
Salary < 20 hr/weekXXX      
Hourly < 2 yearsXXX      
Hourly > 2 years & <1000 hrs/yearXXX      
Employees with Retirement Benefits OnlyRate 2
16.3%
         
Hourly > 2 years & >1000 hrs/yearXXXXX    
Casual Appointments > 2 years & >1000 hrs/yearXXXXX    
Eligible for, but declined Health BenefitsXXXXXFlex Cash
Employees with Health Benefits But Not Yet Eligble for Retirement (< 2 Years)Rate 3
30.6%
         
Hourly - Fully BenefitedXXX  XXXX
Salary > 6 month & 20 hours/weekXXX  XXXX
Employees with Health Benefits And Eligble for Retirement (> 2Years)Rate 4
43.8%
         
Hourly - Fully BenefitedXXXXXXXXX
Salary > 6 month & 20 hours/weekXXXXXXXXX

3. Historic Benefit Rates

FromToRate 1Rate 2Rate 3Rate 4
03/01/2017---7.3%16.3%30.6%43.8%
10/01/201502/28/201710.6%16.0%29.1%41.0%
12/01/201409/30/20159.1%17.4%27.2%40.3%
09/15/201312/01/20148.2%15.5%30.7%44.3%
09/16/201209/15/201310.7%16.0%25.4%38.9%
07/01/201109/15/20128.8%15.8%30.1%42.3%
08/16/201006/30/201111.7%16.8%26.5%40.2%
07/01/200908/15/20109.4%16.2%26.6%39.7%
11/01/200706/30/200912.5%17.9%28.1%42.8%
08/01/200710/31/200712.9%18.3%28.1%43.7%
07/01/200707/30/200712.3%18.1%41.0%
 until 06/30/2007ActualActualActualActual

As a percentage of Salaries & Wages

4. Faculty Release Time

Beginning July 1, 2009 California State University, Northridge will charge The University Corporation the direct cost associated with benefits for Faculty Release Time. Until June 30, 2009, California State University, Northridge charged The University Corporation 38% for benefits on Faculty Release Time. Please note that these charges for benefits are included in the invoiced amounts and are booked in the account '601620 Faculty Release Time'.

5. Administrative Issues

Classification of Employees
The TUC-Human Resources Department will assign all current and future employees with the appropriate benefit rate, based on their appointment. If you have any questions regarding the classification of an employee, please contact Kathryn Weeks, H.R. Manager at (818) 677-5040.

Accounting
Beginning with the July 1, 2007 payroll, benefits will be charged only to account '602000 Benefits'.

Annual Review of Benefit Rates
Benefit rates will be reviewed annually and adjusted to compensate for increases in actual benefit costs. At that time, you will be notified of any rate changes.

6. Cognizant Agency

The above listed benefit rates have been submitted to The University Corporation's cognizant agency for approval.

Department of Health & Human Services
Division of Cost Allocation
DCA Western Field Office
50 United Nations Plaza
San Francisco, CA 94102