Budgeting

Because the University is subject to federal cost accounting standards, as well as to university and sponsor guidelines, all budgets must be prepared in collaboration with and approved by Office of Sponsored Projects before being submitted to sponsors.

Getting Started:

  • Read the RFP (Request for Proposal) for the budget criteria. Often included are limits on the types of expenses, spending caps on certain expenses, and overall funding limits.
  • Identify all of the costs that are necessary and reasonable to complete the work described in your proposal.
  • The best strategy is to request a reasonable amount of money to do the work, not more and not less.

Additional Budgeting Resources

Current Fringe Rates

Item Amount
Social Security 6.20% of the first $137,700 earned (effective January 2020)
Medicare 1.45% (no limit)
State Retirement 17.40% of the first $280,000 (effective July 1, 2020)
State Health Insurance 11.34% ($378 premium per month)
Term Life Insurance 0.22% ($.09 times 80 units = $7.20 divided by $3,333.33)(Covers twice annual salary up to $100,000)
Flex Spending Fee 0.04% ($1.40 per month/$3,333.33 per month-based on $40,000/yr)
Unemployment Insurance 0.07% (Rate 0.4204% of the first $7,000 earned)
Workers Compensation 0.35% of salary per month
Terminal Leave Rate 0.60% of salary per month
New Rate 37.67%
Student Rate 0.35% which includes the following categories:
- Workers Compensation (0.35% of salary per month)
Retiree Rate

25.47% which includes the following categories:

  • Social Security 6.20% of the first $137,700 earned (effective January 2020)
  • Medicare 1.45% (no limit)
  • State Retirement 17.40% of the first $280,000 (effective July 1, 2019)
  • Unemployment Insurance 0.07% Rate 0.4204% of the first $7,000 earned
  • Workers Compensation 0.35% of salary per month
Other Intermittent Worker Rate

Rate 8.07%, which includes the following categories:

  • Social Security 6.20% of the first $137,700 earned (effective January 2020)
  • Medicare 1.45% (no limit)
  • Unemployment Insurance 0.07% Rate 0.4204% of the first $7,000 earned
  • Workers Compensation 0.35% of salary per month
9-Month Summer Rate

25.40%, which includes the following categories:

  • Social Security 6.20% of the first $137,700 earned (effective January 2020)
  • Medicare 1.45% (no limit)
  • State Retirement 17.40% of the first $280,000 (effective July 1, 2019)
  • Workers Compensation 0.35% of salary per month

Travel Costs

MSU Travel Website

Facilities and Administrative Costs

Facilities and Administrative Cost Rate Agreement

F&A Rate Definitions