Subject:  Removal of 18/20 from C&G Fringe Benefit Rates No.        99-8
Date:    September 27, 1999

(Note: This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors. Please forward to others who have a need to know.)

Effective September 1, 1999, exempt salaries (academic and administrative appointments) paid from contract and grant awards will not be assessed payroll tax for 18/20 program costs. This change reduces the fringe benefit rate from 35.02% to 29.20%. All non-C&G accounts and cost share sub-accounts will continue to be charged fringe benefits at the rate of 35.02%.

In order to implement this change for September salaries (paid October 1) it was necessary to develop a strategy that did not require substantial change to existing payroll and labor systems. A more permanent solution may be worked out over the coming months. In the interim, a special set of object codes will be employed to effect the elimination of the charges to C&G exempt staff salaries. The set includes:

  2008   Academic salaries, C&G
            2408   Professional salaries, C&G

            2428   Exempt staff overload, C&G

            2458   Exempt staff terminal pay, C&G

This will have the following effects:

Every attempt is being made to ensure necessary changes are in place for the monthly payroll, encumbrances, standard reports, decision support, and salary transfer documents. Nevertheless, your patience with any disruptions this implementation causes will be appreciated. 

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Financial Management Services Phone:  (812) 855-4884 Email:  cgadmin@indiana.edu
Research and Sponsored Programs - Indianapolis Phone:  (317) 274-8285 Email:  rspinfo@iupui.edu
Sponsored Research Services - Bloomington Phone:  (812) 855-0516 Email:  rugs@indiana.edu
Research and University Graduate School Phone:  (812) 855-3963 Email:  stemarti@indiana.edu