Fiscal Year 2023 Approved Fringe Benefit Rates for Sponsored Projects

Drexel University has finalized the negotiations of the fiscal year 2023 fringe benefit rates for sponsored projects with the U.S. Department of Health and Human Services (DHHS). The finalized full-time fringe benefit decreased to 28.3% from the proposed rate of 31.9%.  The part-time rate of 11.7% remains the same as the proposed rate. Coeus and Banner have both been updated to reflect the new rates effective July 1, 2022.

With the closure of the Drexel University Physician Practice Plan, Drexel University no longer requires the DUCOM Highly Compensated Faculty fringe benefit rate.  The F5 employee class will continue to utilize the full-time fringe benefit rate.

For fiscal year 2023, the Academy of Natural Sciences (ANS) will continue to use the non-sponsored fringe benefit rates; however, the fiscal year 2023 rates are not yet determined and will be announced when final. In the meantime, proposal submissions for ANS should continue to utilize the fiscal year 2022 non-sponsored fringe benefit rates. 

The full-time employee rate captures all full-time, benefit-eligible faculty and professional staff.  Post-doctoral students hired as full-time professional staff are also included in the full-time employee rate.  This group is considered one rate pool because they are all eligible for the same benefit offerings. 

The part-time employee rate includes both part-time benefit eligible and non-benefit eligible employees (e.g. temporary employees, co-ops).

Please note that students are not subject to FICA tax per IRS regulations and as such, do not warrant a separate fringe rate.

If you have any questions regarding the new rates they can be directed to Michael Lacatena at 215.895.6361 and Gabrielle Berrios at 215.895.1730. Current and prior year rates and rate agreements can be found on the fringe benefit page of the Research Accounting website.