Fringe Benefit Charges

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 most General Fund accounts, which will remain funded centrally (non-grad fringes only). Under this model, costs are specifically identified into four categories and will be distributed to the employee’s base salary. The categories are:

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 ½).
MSU retirement (10%) if the employee is eligible AND participates.
Miscellaneous category (1.4%) which includes unemployment compensation, workers’ compensation, long-term disability, longevity, life insurance, employee tuition reimbursement and vacation payouts.
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.

As noted above, most General Fund accounts are excluded from the SI fringe benefit model. This is because most General Fund fringe benefit costs are redirected to MSU’s centrally funded fringe accounts. For more information regarding this process, you can review the Benefit Redirection Guide document.

If further clarification is needed, please send an email to: ctlr.payroll@ctlr.msu.edu

For more information, please select one of the following: