Fiscal Year 2018 Fringe Benefit Rates for Sponsored Projects
July 25, 2017
Drexel University recently completed negotiations with the U.S. Department of Health and Human Services (DHHS) to determine the fringe benefit rates for fiscal year 2018. This agreement will support our claim for fringe benefit reimbursement on grants and contracts. These rates will automatically be applied to salaries charged to grants beginning July 1, 2017, for both Drexel University and Academy of Natural Sciences.
The new approved fringe benefit rates are as follows:
Fringe Benefit Rates effective 7/1/2017 to 6/30/2018
Full-Time Employees 33.10%
Part-Time Employees 15.50%
DUCoM Highly Compensated Faculty 20.40%
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).
The Drexel University College of Medicine (DUCoM) highly compensated faculty rate, previously referred to in our agreement with DHHS as Clinical Faculty Rate, is specific to full-time, benefit eligible, College of Medicine faculty in the “F5” employee class. College of Medicine faculty are automatically assigned to the highly compensated employee classification on hire or when their base salary reaches the annual threshold.
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 Vivian Ng at 215-571-4285. Current and prior year rates and rate agreements can be found on the Fringe Benefit Page of the Comptroller’s website.