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Fringe Benefits Pool Rate Proposal

Overview

Employer-paid fringe benefits and taxes are calculated as a percentage of the applicable employee group’s earnings.

Tax Services calculates the annual fringe benefit pooled rates and prepares the proposal for Department of Health and Human Services (DHHS) review and approval.  The approved benefit rates are then assessed to departments based on employee earnings, regardless of UF funding source.

Procedures

  1. Tax Services queries employee earnings and the employer’s costs of benefits and taxes for the fiscal year, using Enterprise Reporting or other general ledger data
  2. The fringe rates proposal is due by December 31 for the subsequent fiscal year, but we are permitted to request an extension (typically, up to 90 days more) to file our proposal
  3. Fringe rates are calculated by employee group (currently eight different groups) using general ledger data (see UF HR Management Resources: Fringe Benefits Pool)
  4. Tax Services prepares the proposal using a base fiscal year plus projected earnings and benefit activity for the year to which the new rates will apply.  The federal government also requires that we include in the proposed rates any over/(under) collections from prior years
  5. Once the proposed rates are calculated and reviewed internally, UF submits the data to our federal cognizant agency (DHHS) for approval
  6. Upon receipt of federal approval, the updated rates are populated in myUFL in time for the first payroll of the new fiscal year

Definitions

Pooled Fringe Benefit Rate

The employer’s share of fringe benefits and taxes for its employees.  Note that the pooled rates have no impact on the employee’s cost of benefits.  Pooled fringe benefit rates include the following costs:

  • FICA OASDI (Social Security)
  • FICA Medicare
  • Health Insurance (including for graduate assistant and postdoctoral associates)
  • Retirement
  • Life Insurance
  • Clinical Disability Insurance
  • Worker’s Compensation
  • Unemployment Compensation
  • Eligible Leave Cash Outs
  • Sick Leave Pool payments
  • Paid Parental Leave payments

Last Reviewed

05/01/2020: reviewed content

Resources:

UF HR Management Resources: Fringe Benefits Pool

Contacts

Tax Services: (352) 294-7266