Published February 22, 2021
The university’s move to WorkDay necessitates a change in the fringe benefit calculation methodology for personnel. The new calculation methodology uses a flat rate percentage that encompasses FICA, annuity, health benefits, and dependent tuition. The applicable rate is based on job/appointment type and is applied to every individual in the job/appointment type.
The new calculation rates are scheduled to take effect April 1, 2021. The Research Management System (RMS) will be updated with the new rates on that date.
New Fringe Schemes
Six new fringe schemes will be available for selection in RMS, replacing the legacy schemes. These new fringe schemes are:
- Academic*
- Staff*
- Clinical Fellow employee
- Clinical Fellow non-employee
- Postdoc employee
- Postdoc non-employee
* Academic and Staff are calculated using the same fringe rate
If an individual is not part of one of these six job/appointment types, no fringe will be applied (e.g. students).
RMS will select a default fringe scheme for each person based on relative HR data. The scheme can be changed if necessary. Options for No Fringe and Manual Entry will remain available. The fringe rates of FICA only, Standard, and TBN will no longer be available.
Fringe Cap
For the Academic and Staff job/appointment types, a fringe cap will be implemented. The applicable fringe benefit rate will be applied to the first $200,000 of base salary earned by individual during the calendar year. When the fringe cap is reached ($200,000 in base salary earnings), fringes will no longer be charged for that individual for the remaining portion of the calendar year.
State and Local Sponsors and Dependent Tuition Benefits
Scheduled for April 1, the dependent tuition benefit can no longer be charged to state and local sponsors, bringing them in line with federal sponsors. RMS will make the determination on whether to include dependent tuition based on the sponsor and originating sponsor selected in the RMS Record.
STAR Hot Topic
Research Education & Information and the Office of Sponsored Research Services are offering an informational session for the new fringe rate structure. The session will include an overview of the changes scheduled to be available in RMS on April 1, a before-and-after look at the fringe costs, and an opportunity to ask questions.
March 19, 2021
9:30 – 11 a.m.
Register in Learn@Work. The Zoom link will be sent to all registrants before the session.
This session will be recorded and available for on-demand viewing.
Questions?
If you have questions, please send them to Teri Medley at medleyt@wustl.edu.