Fringe Benefits
Fringe benefits are additional costs the University of Illinois System or the employee incurs as a part of their employment. As a standard practice, in most cases, fringe benefits are automatically charged and will follow the gross expense for an employee’s payroll. It is inappropriate to move fringe expenses separately from the gross payroll.
Types of Fringe Benefits
The Payroll System assesses benefits such as:
- Health, Life, Dental (HLDINS)
- Medicare OASDI (MEDICARE)
- Retirement (RETIRMNT)
- Grad Assistant Health (HDVINS)
The Allocation and Assessment System (ALAS) assesses benefits such as:
- Termination Benefits (TERMBEN)
- Workers Compensation (WKCOMP)
What determines if a fringe expense is assessed to your fund by the payroll system?
A fringe expense is assessed to your fund by the payroll system for employees set up by Human Resources (HR) based on if they are resident/non-resident, if their position is benefits eligible, and/or their tax status.
To view the assessment status for fund in Banner, use form FTIFATA.
Fringe Corrections
Rounding errors can happen on fringe accounts due to labor redistributions between C-FOAPS.
For grant fund related fringe rounding issues, please contact your campus office for grants and contracts for help correcting and closing out grant fund balances.
For non-grant fund-related fringe rounding issues that impact the closeout of C-FOAP codes, please contact University Accounting & Finances (UAFR) Payroll Accounting at uafrpayrollacctg@uillinois.edu.
Other Payroll Errors
Payroll Suspense
If a payroll transaction, such as a prior year adjustment, attempts to post to a terminated fund, organization or program code, Banner uses suspense FOP segments: fund 300011, org 109001, and program 109001 to complete the transaction.
Transactions with terminated C-FOAPAL codes
If a transaction is processed and any portion of the transaction is on a terminated FOP segment, Banner substitutes it with the suspense FOP segment so the payroll (or labor redistribution) transaction can be completed. This is most common when processing labor redistributions on prior year state fund related pay events. Posting to a suspense FOP can occur even though no portion of that fund line on the pay event has been changed. Banner first voids all payroll charges on the entire pay event then posts a separate redistribution, even if the FOP has not changed.
An original pay event or adjustment posting to a suspense FOP segment should be corrected by processing a labor redistribution using Banner form PZAREDS to correct the FOP segment.
For original pay events (sequence 0), this usually occurs when the employee’s labor redistribution is set to a terminated C-FOP and is corrected through Human Resources Front End (HRFE) software. Additionally, the labor redistribution will need to be reversed using Banner form PZAREDS and posted back to the suspense FOP. Checking for balances on the suspense FOP can help determine if a correction is needed. Please contact UAFR if you are unsure if corrective action is needed.