Whats the difference between the fringe benefit rate and the indirect cost rate?
A. Fringe benefits are the extras that go along with salary expenses: health insurance, life insurance, workman’s compensation, etc. Usually they are estimated as a percentage of the base salary. At Cook County Hospital, for instance, an estimate of 35% of salary is currently applied to calculate the fringe benefits to be paid. For employees to be hired through the Hektoen Institute, a direct calculation of the cost is preferred, and may amount to 35% to 46% of salary. To make this calculation, consult John Prochaska at 312-633-7131. Indirect costs are the overhead expenses incurred by the institution as a result of a grant-funded project. These would include the costs of administration (i.e., payroll, accounting and personnel records), the costs of maintaining the physical plant, utility costs, and costs of special supportive services such as a research laboratory (or a Research Development Office!). Remember that the difference between direct costs and indirect costs is whether an ex
