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FY20 Proposed Fringe Benefit Rates for Sponsored Projects

December 20, 2018

Drexel University has submitted the fringe benefit proposal to the U.S. Department of Health and Human Services (DHHS) to establish the fiscal year 2020 fringe benefit rates for sponsored projects. These rates are not final until we receive the official rate letter from DHHS, however, we do not expect any significant changes when they are finalized. It is anticipated that the University will not receive the approved, final rate letter for at least three to six months. Therefore, you should begin to utilize these proposed rates on any proposal submissions that will have salary and wages after July 1, 2019, to ensure that you have budgeted adequate funding. Coeus has been updated to reflect the new rates.

For fiscal year 2020, the Academy of Natural Sciences (ANS) will revert to using their non-sponsored fringe benefit rates which are listed below. Proposal submissions for ANS should utilize these rates for any salary and wages after July 1, 2019. Coeus has also been updated to reflect this change.

The fiscal year 2020 proposed fringe benefit rates for sponsored research are:

Employee Pool Drexel  ANS 
 Full-time Employees 31.9%  32.0%
Part-time Employees 5.3%  11.5%
DUCOM Highly Compensated Faculty 17.8% N/A

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 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 or 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.