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FY2024-01: Proposed Fringe Benefit and Payroll Tax Rates

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The Fiscal Year 2024 fringe benefit rate proposal has been calculated at 43.36% for general employees and 61.79% for uniformed employees of regular compensation (salaries expended under object codes A01, A07, A09 and AA1).

The Fiscal Year 2024 employer payroll tax rate has been calculated at 2.45% of gross compensation for regular and contractual employees (salaries expended under AA and CC object codes), based upon the employer share of taxes for Unemployment Insurance, Universal Health Insurance, Medicare, and the Paid Family Medical Leave assessment.

These fringe and payroll tax rate proposals have been submitted to the U.S. Department of Health and Human Services 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. The fringe benefit rate will be assessed on all federal grant and other non-budgetary accounts. The payroll tax rate will assess Unemployment, Universal Health, the employer’s share of the Medicare insurance and Paid Family Medical Leave assessment to all budgetary and nonbudgetary accounts incurring AA and CC salaries. Both rates will take effect beginning with Period 1, BFY2024 (July 2023).