Because grants come with specific rules, departments must follow special guidelines for paying the benefit and leave rates of employees in grant-funded positions. As with all leave and/or benefit-eligible employees, department budgets must set aside funding per employee eligible, but the rates for grant-funded positions are different.
Structure
Structure
Grant-funded positions use a single, federally-negotiated rate instead of the University’s regular, separate benefit and leave rates.
- Pays for: University subsidy on employee insurance, retirement contributions, leave program, FICA
- Calculated as: Percentage of employee salary, as required by federal rules.
Rates are based on actual usage data of at least two years. Any new benefits cannot be charged to grants until they have two full years of cost data.
Calculation & Charges
Calculation & Charges
All University grant funds (2100-2299) are charged the federally-negotiated benefit rate through a process generated by the finance software system.
| Grant Benefit Rate | Grant Leave Rate | FICA | |
|---|---|---|---|
| FY26 Rate | 28.8% | TBD | 7.65% |
| FY27 Rate | TBD | TBD | 7.65% |
| Charged Account | 710015 | TBD | 710050 |
When processing, grant funds will see the regular benefits rate (two components) post to the chartfield, reverse on the same day, and then apply the federally negotiated benefit rate to all benefits in the charged account.
Match programs and cost share get charged the regular benefits rate (two components). Then, an allocation applies the grant benefit rate to the correct program or project. The original benefit charges are not reversed.
Additional Resources
Additional Resources