Fringe Benefits & Indirect Cost Rates for Extramural Funding

Fringe benefits are a required cost for all salary and wages paid to all Universities of Wisconsin (UWs) personnel. Current fiscal year (FY) rates at UWL for extramural funding and estimated rates for subsequent FYs are below. Rates are recalculated each FY. Rates for other UWs campuses can be found on the UWs fringe benefits webpage (see the Extramural Funds heading). The UWL budget template automatically calculates fringe benefits at the current, applicable rates. For additional information, including applicable rates for UWs, WiSys, and UWL funding sources, see Budget Guidance: Fringe Benefits Overview.

Indirect Cost Rates

• On-site: 34% modified total direct costs (MTDC)
• Off-site: 13% modified total direct costs (MTDC)
• Current federal negotiated indirect cost rate agreement (NICRA)

Indirect Cost Base: Modified Total Direct Costs (MTDC)

UWL’s indirect costs for federal awards are calculated as a percentage of a budget’s modified total direct costs (MTDC). The MTDC base includes most cost categories but excludes the following expense types.

MTDC Excluded Expenses

1. Equipment
   1. Purchase of tangible, non-expendable property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.
2. Participant support
   1. Costs to support individuals (who are not employees) who are receiving a training opportunity as part of a workshop, conference, seminar, symposium, or other short-term instructional or information sharing activity. Examples include stipends, subsistence and travel allowances, and registration fees.
   2. A participant does not perform work or service for the project/program. The participant is not required to deliver anything or provide any service in return for support costs.
   3. Research participants are not considered participants under this category, and incentives for research participants should be budgeted as supplies, which are included in the MTDC base for indirect costs.
   4. For more information, see UW-Madison's Participant Support Costs FAQs.
3. Tuition remission
   1. Expenses for tuition and fee remissions for university students
4. Scholarships and fellowships
   1. Includes financial aid paid directly to university students, including scholarships, fellowships, stipends, and dependency allowances
   2. Does not include salaries and wages
5. Subaward amounts in excess of $25,000
   1. The initial $25,000 of each subaward is included in the MTDC base. Any portion over $25,000 for each subaward is excluded from the MTDC base.
   2. Indirect costs are assessed on the first $25,000 of each subaward during each competitive project period regardless of which year(s) the subaward is budgeted. For example, for a subaward of $75,000 to be paid over a four-year project period, indirect costs would only be assessed on the first $25,000.
6. Off-campus rental costs
   1. Includes costs for rental of off-campus space and related maintenance costs if they are included in the rental agreement
   2. Does not include other rental costs, such as hotel rooms, equipment, or automobiles
7. Capital expenditures
   1. Alterations and renovations to buildings and facilities
8. Patient care
   1. Includes costs of hospitalization and other routine and ancillary services provided by a hospital or clinic to patients participating as research subjects
   2. Does not include consulting physician fees, services provided by commercial laboratories, personal expense reimbursement (such as patient travel), or other direct payments to patients, including inpatients, outpatients, subjects, volunteers, and donors

Indirect cost base:

• Total direct costs (TDC) for amounts up to $50,000
• Modified total direct costs (MTDC) for amounts greater than $50,000