Why does the grant have to pay fringe benefits?
CMS (Central Management Services) has determined that the employer’s portion of fringe benefits must be paid by the granting agency when a person is paid from a grant. Why do the fringe benefit amounts vary so much? If someone is paid additional compensation, the only fringe benefit cost is SURS (retirement) and Medicare. If, however, some portion of the regular contract salary is paid by the grant (for example, a course buyout) then a proportional amount of the employer’s cost for medical and dental insurance is also charged to the grant. Who decides what the fringe benefit amount should be? The medical and dental cost charged to a grant is based on the type of insurance coverage and number of dependents covered by the individual who is being paid on the grant. What is indirect cost and who decides how much my grant has to pay? Indirect cost, or facilities and administrative costs, is a portion of the expenses necessary to run the university that are charged to a grant. This includes
Related Questions
- Id like to use my funding to pay a graduate student to assist me during the summer: do I include fringe benefits for the students hourly pay?
- Can the contractor pay the employees their fringe benefits in cash instead of furnishing the required fringe benefits?
- Can we use an average for the pay rate, fringe benefits or hours?
