Finance Division

Charging Employer Contributions

The appropriations bill states:

"It is the intent of the General Assembly that any agency of the State Government whose operations are covered by funds from other than General Fund Appropriations shall pay from such other sources a proportionate share of the employer costs of retirement, social security, workmen's compensation insurance, unemployment compensation insurance, health and other insurance for active and retired employees, and any other employer contribution provided by the State for the agency's employees."

It is generally understood to mean that employer contributions (fringe benefits) must be charged to the same fund source as salaries. This practice should be followed unless prohibited by other regulations, such as limits on amounts of employer contributions charged to federal cooperative extension funds.