Finance Division

Accounting Services

Discussion:

Clemson University allocates the employer portion of fringe benefit costs using a pooled fringe benefit rate.  Annually pooled fringe benefit rates are determined through a process which takes all employee benefits by employee group and averages them into one fringe benefit rate for each group.

When planning beyond the current fiscal year administrators should anticipate future employee benefit costs to increase from one year to the next.

Clemson has four (4) approved rates based on employee benefit program code:
9 Month
12 Month
Student
Part Time/Temporary
(see below for employee/rate groups and corresponding benefit program codes, or bpc):
          
A pooled fringe benefit rate:

   1. Provides a simpler approach process for administering budgets
   2. Considered to be a best practice for leading research institutions
   3. Reduces questions on specific benefits allowed under grant funding
   4. Provides an opportunity to recover employee benefit costs currently funded and managed at the institution level

Benefits included in the Clemson’s rates are:

   1. FICA
   2. Unemployment Tax
   3. Insurance – Health, Dental, Life
   4. Retirement
   5. Long-term Disability
   6. Worker’s Compensation
   7. Employee Tuition Remission
   8. Termination Pay

Rates are calculated and federally negotiated and approved on an annual basis.  A pooled fringe rate is based on actual two year prior activity and includes any anticipated changes in cost for the period the rates are to cover.

The Comptroller’s Office is responsible for development and negotiation of the pooled fringe benefit rate agreement which is currently applicable to Clemson University (CU).

The current approved rates are posted on the Comptroller’s website.  

Employee Group and benefit program code:

Clemson’s four (4) rates are based on four (4) groups of employees grouped by employee benefit program code.  Each employee is assigned a benefit program code (bpc) by Human Resources.  The employee groups and their corresponding benefit program codes are:

            9 Month
9MO – 9 month
            12 Month
STA – 12 month
FED – Federal
GST – Temporary Grant
            Students
NEL – Undergrads
GRD – Graduate Students
            Part Time/Temporary
RRR – Returning Retirees
TMP – Temporary Employees
TLR – Permanent Part Time