Direct Costs: Salary, Wages, Fringe

Faculty

Use the current gross academic year salary as a base for calculating salaries. To estimate annual percentage increments for multi-year budgets, use the current approved percentage.

If you have questions about salary figures, check with the Payroll Manager (ext. 2008). Academic-year salary may not be included unless the faculty member is scheduled for leave or has permission from the Dean of Faculty (DOF).

If the budget involves creating new faculty (or other teaching) positions, you need approval from the Educational Affairs Committee (EAC); contact the DOF for more information. Depending on the situation, you may also need to consult Human Resources about specific policies related to hiring procedures and salaries for these positions.

Leave Salary

Faculty members scheduled for leave during the period of a proposed grant budget are expected to include leave salary in the budget. College policy allows you to receive income during your leave up to the amount you would have been paid by the College; some grants limit salary to the level for the year in which the grant application was submitted. The leave policy states that "the level of support from the College is understood to be 75% for a semester leave and 55% for a year's leave" (prorate these amounts for grant periods that are less that your leave period).

Summer Salary

Budgets may provide for up to two months of extra work during the summer. Each month of summer salary is calculated at a rate of one-ninth of the previous academic year's salary (for a maximum of 2/9 per summer). Exceptions to this policy must be approved by the Vice President for Academic Affairs (there is precedent for approval of 2.5 months summer salary; for more information, contact the Sponsored Programs staff). To calculate annual adjustments to summer salary, consult with the Sponsored Programs staff.

Consult the Faculty Handbook for College policies about receiving income from consulting, lecturing, teaching at other schools, etc.

Students

Student job categories and wages are set by Human Resources and administered by the Student Employment Office. To estimate annual percentage increments for multi-year budgets, use the current approved percentage. Charge fringe benefits for all student wages, whether paid hourly or by stipend.

Academic year wages

Student job categories and descriptions can be found on the SEO site. A number of them relate to faculty research assistance, at different pay levels depending on the level of responsibility and the technical expertise required for the research. No student may be hired without following Student Employment Office procedures, even if the position is funded by a grant. Faculty research assistants are considered Level B Skilled workers; the current rate for these positions is posted here. SUMMER STIPENDS - SEE BELOW                                       

Summer stipends

A Summer Research Assistant Authorization form is required in order to pay weekly stipends (instead of hourly wages) during the summer.    Summer stipend rates for the current year can be found on the Undergraduate Research Office's web site under Summer Research Assistants. To estimate rates for a multi-year budget, increase the current rate by $10 per week each year.  

College policy does not allow college funds to be used for room or board expenses. Faculty who want to cover room and/or board expenses for their summer students from their grants must request and justify this funding in their grant budgets or have explicit permission from the funding agency.

Summer employment of Middlebury College students who have just graduated in May, students from other colleges, and high school students doing grant-funded research are coordinated by Human Resources. Recent grads who will work for the summer must be hired as short-term employees and are not eligible for College housing; for budgeting purposes use $12/hr starting June 2017. Check with OGSP to determine whether the funding agency allows you to hire non-Middlebury students (college or high school) and with questions about logistics. Language School students may not be hired without the approval of the Dean of the Language Schools.

Staff

Consult with Human Resources to find out what to pay for staff positions and whether a position qualifies for fringe benefits other than payroll taxes. To estimate annual percentage increments for multi-year budgets, use the current approved percentage.


Fringe Benefits

Fringe benefits must be included as a direct cost of all grant proposals. For grants, Middlebury has  fringe benefit rates that are negotiated with the federal government. The negotiated fringe rate is charged to active grants and must be used to estimate fringe benefits in grant proposal budgets. The current rate is here. This is a blended rate and is not intended to represent the actual costs of fringe benefits for specific employees in any grant proposal or working on grant-funded activities; a blended rate is based on the assumption that over time the institution will recover the full costs of fringe benefits for all employees paid from grant budgets during that period.

Fringe benefits for students can be charged to grants at a lower rate (authorized by the Director of Grants & Contract Administration). This rate is currently 10% of wages. The DGCA will also allow reduced fringe benefit rates in other situations on a case-by-case basis (such situations include temporary employees and faculty summer salaries for faculty waiving their rights to retirement plan contributions based on summer salary). Contact Sponsored Programs staff for details. Contact Jen Bleich for appropriate rates to be used in Institutional grant proposals.

Some granting agencies will pay fringe benefits but not overhead or indirect costs. The fringe benefit rate for these applications depends on the specific situation; contact Sponsored Programs staff for details.

There are "fringe benefit" costs are associated with nearly all salaries and wages (even for non benefits eligible employees). They are a direct cost to the College and are often called "mandated benefits" or "payroll taxes" (employer share of FICA, Workers' Compensation, unemployment insurance). The current rate for mandated benefits is 10% of salaries and wages. The Director of Grants & Contracts Accounting will assume that the salary or stipend line includes this amount if it is not separately budgeted as fringe benefits.