VSU allows 9-month faculty to earn up to 33% of their salary during the summer. *The rules according to the U.S. Department of Labor regarding the calculation and reporting of Prevailing Wage Fringe Benefits on the WH-347. Remember the rules state that you are to report the hourly fringe benefit rate that you pay in cash on the report. Column 6 – Rate of Pay (Including Fringe Benefits): In the “straight time” box for each worker, list the actual hourly rate paid for straight time worked, plus cash paid in lieu of fringe benefits paid. QuickBooks Desktop vs Intuit Online Payroll – Free Webinar, Tips for Effectively Using QuickBooks Purchase Orders, The Great Debate – QuickBooks Desktop vs. QuickBooks Online, Learn to use QuickBooks in your construction business, Get 20% Off QuickBooks Pro Small Business Accounting Software + Free Shipping, Save 20% Off QuickBooks Premier Accounting Software + Free Shipping, Buy QuickBooks Enhanced Payroll and Save 20%. Some funding agencies (including the National Science Foundation) require budgets to reflect effort in terms of “person months” committed to the project. To budget for summer effort, divide the 9-month base salary by 9 to calculate the monthly rate of pay, then multiply that figure by the number of summer months (up to 3) that the faculty member will work on the grant project. Most faculty are on 9-month appointments, and their effort and compensation on a grant program can be calculated using the methods below: With the approval of the Department Head and Dean, faculty can be released from academic year teaching duties to work on grant-funded activities. See OMB Circular A-21 or contact OSRP for information and guidance regarding the role of non-exempt staff. Multiply the compensation to be paid with grant funds by 7.65% EXAMPLE: A student will be hired to work 200 hours and paid $10/hour with grant funds ($2,000 total). EXAMPLE:  Dr. M will be paid $20,000 from the grant for her effort on the project. The rate is calculated by adding together the annual cost of all benefits and payroll taxes paid, and dividing by the annual wages paid. However, direct charging of these costs may be appropriate if the following circumstances apply: The sponsored program is a major project or activity. Graduate assistantships (GAs) can be included in grant proposals. Calculate salaries and wages for grant budgets using each person’s institutional base salary and time / effort committed to the project. OPTION 3 – QuickBooks recognizes company contribution items that you have set up for the fringes (Health & Welfare, Pension, and Vacation Fund) you click on each of these 3 items to indicate that these are your fringe benefit items and you choose to Apply these Fringe Benefit items to this project only (do not pro-rate by job). QuickBooks® and the Gold Developer Logos are trademarks and or registered trademarks of Intuit Inc., displayed with permission. This “prevailing rate of pay includes both an hourly wage rate AND an hourly fringe benefit rate. VSU’s negotiated indirect cost rate agreement has established a fringe benefit rate of 37% for full-time employees that should be used to calculate fringe benefits for grant proposals. Dr. Y. will spend 8 days during the summer on the grant project. Dr. M’s fringe benefit rate is 37% of her salary. OPTION 2 – QuickBooks recognizes company contribution items that you have set up for the fringes (Health & Welfare, Pension, and Vacation Fund) you click on each of these 3 items to indicate that these are your fringe benefit items. For graduate assistantships, calculate fringe benefits on wages only (not on the tuition support). Whenever grant funds are used to pay salaries and wages, associated fringe benefits must also be charged to the grant. Dr. Y will spend 2.5 months during the summer conducting grant-funded research. Then, multiply the total by 100 to get the fringe benefit rate percentage. These rates are found on the Prevailing Wage Determination that is included in the contact package and you MUST pay your employees these rates of pay. Ms. V will be re-assigned to the grant for 50% of her effort. To budget for a summer course, multiply the faculty member’s base salary x 3/32 (one summer course = 3/32 x academic year salary). 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In rare cases, non-exempt staff may be paid with overtime compensation for extra service duties that go beyond the scope of their regular responsibilities. Sometimes it might be appropriate to pay a faculty member to teach a summer course as part of a grant project. Estimated benefits to be used for budgeting purposes in Fiscal Year 2020. To determine the daily rate of pay, divide the base salary by 224 duty days (duty days for 12-month employees calculated with allowances for annual leave, official holidays, and administrative closings). Pay particular attention to Column 6 – Rate of Pay/Cash Fringes, as you should ONLY be reporting/showing the $16.22 rate of pay. Therefore, when a company pays the employee gross wages of $20 per hour worked, the company's cost is $29.04 per hour. (If next year’s raise is known at the time you are developing a budget, include the known raise for next year then budget a 3-5% pay increase for any subsequent years of the project.) Many projects will involve the effort of VSU faculty. Pingback: Tweets that mention Calculating & Displaying Fringe Benefits on a Certified Payroll Report | QuickBooks for Contractors blog -- Topsy.com. 3/32 x $62,000 = $5,813. Remember the rules state that you are to report the hourly fringe benefit rate that you pay in cash on the report and that if you pay the fringes to approved plans you report just the hourly rate of pay. The grant will pay associated fringe benefits of $7,400 ($20,000 x 37 % = $7,400). Generally, undergraduates are paid between $6.00 and $10.00 per hour, and graduate students are generally paid between $8.00 and $15.00 per hour, depending upon their level of responsibility, the skill involved in their assigned duties, and other factors. Fringe benefits for all students should be calculated at 7.65%. I need to know this information. We've been selected by TSheets as a Top QuickBooks blog to read in 2018! Check paragraph 4(a) of the statement on page 2 of the WH-347 payroll form to indicate the payment. In these instances, the grant will pay for that portion of the faculty member’s time, creating “salary savings” to the institution. {Note:  the employees rate of pay in QuickBooks is $19.57). All rights reserved.AccountingCoach® is a registered trademark. Examples of the benefits that would be included in the numerator of this calculation are: The fringe benefit rate can be used to examine the total cost of labor, especially when determining whether to outsource work or to shift a company location. The rate is calculated by adding together the annual cost of all benefits and payroll taxes paid, and dividing by the annual wages paid. The following are guidelines, definitions, computation and other important information you need to know about Fringe Benefit Tax …