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Fringe Benefit Rates

Research Accounting Services is responsible for the submission of the fringe benefit rate proposal to the Department of Health and Human Services. This proposal determines the fringe benefit rates to be used for the upcoming fiscal year on externally sponsored projects and is submitted by December 31st of each year.  The proposal not only projects the expenditures related to fringe benefits for each of our rate pools, but also reconciles the actual rate changed in the prior year and increases the rate for any under-recovered expenses in that period or lowers the rate for any over-recovered expenses related to that period. The fringe benefit rates applicable to non-sponsored research are developed by Human Resources.

Fringe Benefit Rates

    
Pool FY'20 Approved Rates FY'19 Approved Rates* FY'18 Approved Rates FY'17 Approved Rates FY'16 Approved Rates FY'15 Approved Rates
Full-time Employees  31.7%  29.7% 33.1% 31.1% 32.8% 33.0%
Part-time Employees  5.3%  7.8% 15.5% 13.5% 8.2% 10.2%
DUCOM Highly Compensated Faculty  17.8%  22.27% 20.4% 19.6% 14.5% 14.3%

*FY'19 Approved Rates are applicable to Drexel University and Academy of Natural Sciences.  FY'20 proposed rate and prior periods are specific to only Drexel University. The Academy of Natural Sciences should utilize the Academy's general fringe benefit rates for full and part-time employees of 32.0% and 11.5%, respectively.

Full-time Employee Pool

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.

Part-time Employee Pool

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

DUCOM Highly Compensated Faculty Pool

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.

Students

Per Internal Revenue Service regulations, students are exempt from FICA tax.  Since other costs associated with graduate students is minimal (Worker's Compensation insurance), a separate pool for these employees is not warranted.

Fringe Benefit Rate Agreements