FRINGE RATE POLICY
It is the policy of Columbus Nanoworks (“CNW”) that the Fringe Benefit Rate is established in accordance with the Federal Office of Management and Budget Uniform Guidance (OMB Uniform Guidance). This rate must be applied to sponsored programs salaries when developing budgets.
Purpose of this Policy:
The purpose of this policy is to provide an explanation of CNW ‘s Fringe Benefit Rate and its application to federally and state sponsored projects.
Scope of this Policy:
This policy is applicable to all federally and state sponsored awards.
Procedures for Implementation:
i. Calculation of the Fringe Benefit Rate
The Fringe Benefit Rate is calculated by the development of a pool of Fringe Benefit Costs (the numerator) and of a salary and wage base (denominator). The pool consists of costs for the benefits provided to employees. A Fringe Benefit Rate is developed by dividing the cost pool by the base; this rate represents the percentage that must be multiplied by employees’ salaries and wages expended for sponsored projects.
ii. Fixed Rate
CNW calculates a fixed rate based on an estimate of the costs for the period covered by the rate. When the actual costs for this period are determined, an adjustment will be made to the rate for the future year(s) to compensate for the difference between the costs used to establish the fixed rate and actual costs. The current fixed rate is 35.44%.
iii. Components of the Fringe Benefit Rate
The fringe benefit costs included in the fixed rate are:
- Group Medical Insurance, 13.5%
- FICA, 7.65%
- Worker’s Compensation, 0.74%
- Unemployment Insurance, 0.013%
- Sick Pay, 4%
- Vacation Pay, 4.64%
iv. Application of the Fringe Benefit Rate
The Fringe Benefits are charged using the rate calculated from the costs of the above components. The rate is applied to the portion of salaries and wages allocable to the sponsored project.