Stanford uses multiple fringe benefits rates developed under the requirements of 2 CFR 200). Since September 1, 2002, Stanford has used four different rates for different categories of employees, as described below.
Each rate is calculated by the development of a pool of fringe benefits costs (the numerator) and of a salary and wage base (denominator). The pool consists of costs for the benefits provided to a particular category of employees. When the pool is divided by the base applicable to that category of employees, a rate results; this rate represents the percentage that must be added to employees’ salary and wage dollars.
The categories of employees having separate fringe benefits rates are as follows: 1. Regular Benefits-Eligible Employees; 2. Post-Doctoral Affiliates; 3. Contingent (casual or temporary) Employees; and 4. Graduate Research and Teaching Assistants. (Other student salaries have a benefits rate of zero.)
Regular benefits-eligible employees are those faculty and staff who hold an appointment of at least six months (four months for bargaining unit employees) for at least 50% time and thus are eligible for Stanford’s retirement and health and welfare benefits programs. Post-doctoral affiliates are advanced nonmatriculating students employed by Stanford to perform services related primarily to Stanford research projects. Contingent employees are those whose appointments are too brief (i.e., less than six months, or four months for bargaining unit employees) or too few hours (i.e., less than 50% time) to make them eligible for regular benefits. Graduate research and teaching assistants (RAs and TAs) are students whose RA or TA appointments are at least 25% (for the full University contribution to the cost of student health insurance) or 10% (for a half contribution by the University).
Regular benefits-eligible salaries charged to government-funded PTA’s, academic service centers and sponsored project cost sharing PTA’s are exempt from the TGP charge.
The TGP charge is subject to facilities and administrative costs (F&A) and infrastructure charges. The TGP charge appears in expenditure type 51770 FRINGE BENEFITS TGP.
If you have any questions or need more information about the application of the TGP Fringe Benefit Rate, please contact the University Budget Office or, Research Administration Policy and Compliance, at extension 3-9102.
Other registered Stanford undergraduate and graduate students have no benefits charges applied against their wages; this is because these students receive no fringe benefits. Students who are employed by the University during a quarter in which they are not registered (including summer quarter) must be classified as contingent employees until they are registered again.
The fringe benefits pool comprises the following categories of cost:
RETIREMENT PROGRAMS, including social security, contributory plans, early retirement incentive programs, etc.
INSURANCE PROGRAMS, including health, dental, group life, disability, workers’ compensation, unemployment compensation, post-employment medical, travel insurance, and other.
MISCELLANEOUS PROGRAMS, including staff development, severance pay, sabbaticals, benefits counseling, etc.
TUITION GRANT PROGRAMS (TGP), for children of eligible faculty and staff, was included in the negotiated fringe benefits pool through Fiscal Year 1999, but has since been distributed by means of a separate charge against non-government salaries only.
The salary bases for fringe benefits consist of all salaries and wages paid to each category of employee. Sabbatical and long-term disability payments, which are themselves fringe benefits, are not included in any salary base.
Stanford’s fringe benefits rates are established under 2 CFR 200., “Negotiated fixed rates and carry-forward provisions,” which provide for the negotiation of fixed rates in advance for a fiscal year. Any over- or under-recovery for that year is included as an adjustment to the appropriate fringe benefits rate for a subsequent year.
Tuition Grant Program
The University applies the TGP rate to regular benefits-eligible salaries to support the costs of the Tuition Grant Program (Admin Guide Memo 2.3.3, "Tuition Privileges").
Effective September 1, 1999, the Tuition Grant Program (TGP) fringe rate is assessed on regular benefits-eligible salaries charged to all non-government funded PTA’s including sponsored projects, operating budgets and auxiliary PTAs.