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.
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.
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, 2019)
|Covered Benefits:||Taxes & Mandatory|
|Eligibility Criteria||Applied Rates||FICA||Unemployment||Workers|
|Employee Receiving No Benefits||Rate 1|
|Students w/o ppointment &<4hrs/day||X||X|
|Students w/ appointment or > 4hr/day||X||X||X|
|Salary < 6 month||X||X||X|
|Salary < 20 hr/week||X||X||X|
|Hourly < 2 years||X||X||X|
|Hourly > 2 years & <1000 hrs/year||X||X||X|
|Employees with Retirement Benefits Only||Rate 2|
|Hourly > 2 years & >1000 hrs/year||X||X||X||X||X|
|Casual Appointments > 2 years & >1000 hrs/year||X||X||X||X||X|
|Eligible for, but declined Health Benefits||X||X||X||X||X||Flex Cash|
|Employees with Health Benefits But Not Yet Eligble for Retirement (< 2 Years)||Rate 3|
|Hourly - Fully Benefited||X||X||X||X||X||X||X|
|Salary > 6 month & 20 hours/week||X||X||X||X||X||X||X|
|Employees with Health Benefits And Eligble for Retirement (> 2Years)||Rate 4|
|Hourly - Fully Benefited||X||X||X||X||X||X||X||X||X|
|Salary > 6 month & 20 hours/week||X||X||X||X||X||X||X||X||X|
3. Historic Benefit Rates
|From||To||Rate 1||Rate 2||Rate 3||Rate 4|
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.
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