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Fiscal Year Memo 2025-01: Proposed Fringe Benefit and Payroll Tax Rates

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The Fiscal Year 2025 fringe benefit rate proposal has been calculated at 43.43% for general employees and 63% for uniformed employees of regular compensation (salaries expended under object codes A01, A07, A09 and AA1).

Additionally, the Fiscal Year 2025 employer payroll tax rate has been calculated at 1.62% of gross compensation for regular and contractual employees.

These fringe and payroll tax rate proposals have been submitted to the U.S. Department of Health and Human Services (U.S. HHS) for approval. Although there is no guarantee that the federal review agency will approve the rates as proposed, the calculation of these rates is consistent with the federally approved methodology used in prior years, and deferral of recoveries is allowable under federal procedures.

Questions regarding this memo may be directed to Jessie Zuberek at [email protected].