National Conference on College Cost Accounting

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Fringe Benefit rate - Highly compensated employees

  • 1.  Fringe Benefit rate - Highly compensated employees

    Posted 12-09-2020 11:56
    Hello Everyone,

    I am looking for information on how other universities handle benefit limitations for highly compensated employees. Specifically regarding any limitations or caps on retirement contributions associated with IRS deferral limitations and the reduction of social security contributions once an employee reaches that threshold.

    If you have a composite fringe benefit rate, how does your institution handle these contribution limitations/reductions for highly compensated employees? Do you have a special FB rate for high compensated employees? Do you blend the differences into one rate (if so, how do you handle the outcry from Athletics or other departments with highly compensated employees)? Does anyone have a blend of fringe benefit rates and charging actuals? Example, the FB rate might include insurance and taxes only and the university charges actuals for retirement?

    Any responses would be greatly appreciated!

    Thank you all!

    Gina Hooten
    Financial Analysis Manager
    Utah State University
    Logan, UT