MSU Controller's Office

Financial and Cost Analysis

Fringe Benefit Charges

The Office of Financial and Cost Analysis is responsible for setting the charges used for recovering the cost of employee fringe benefits.

Michigan State University uses the specific identification (SI) fringe benefit model to recover the cost of fringe benefits from employing departments. This method will be applied to all MSU accounts, excluding General Fund (11-xxxx) which will remain funded centrally. Under this model, costs are specifically identified into four categories and will be distributed to the employee’s base salary (SAL, CTS , REG and TSS). The categories are:

  1. Health/dental/Rx will be charged via a fixed dollar amount if employee is eligible for health benefits. The amount charged will correlate with employee’s level of effort (full-time, ¾, or 1/2 ).
  2. MSU retirement (10%) if the employee is eligible AND participates.
  3. Miscellaneous category (2.0%) which includes unemployment compensation, workers’ compensation, long-term disability, longevity, life insurance, and employee tuition reimbursement.
  4. FICA 7.65% up to salary cap and 1.45% thereafter.

Payroll types other than base and those employees working less than 50% will only be charged FICA as appropriate.

If further clarification is needed, please call Sue VanCamp at 355-5029, ext. 8 or send an email to: vancamps@ctlr.msu.edu.

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