FY2027 Fringe Benefit Rate Update – Effective July 1, 2026
The Controller’s Office is working on updating the fringe rates applicable to fiscal year 2027. The new rates are applicable to transactions incurred on or after Jul 01, 2026.Faculty/Classified Fringe 38.7% (Decrease from 38.8%)
Hourly Fringe 7.8% (Increase from 7.4%)
Updated Process
Payroll:
o input new rates in Banner; new rates to be automatically applied to labor starting on July 10, 2026 (Pay Period 14).
Cost Accounting and Financial Reporting:
o prepare and post in Banner adjusting journal entries for all applicable labor from Jul 1, 2026 – July 9, 2026.
G&C Accounting:
o fringe on ongoing grants and contracts will be included at the FY27 rates on the invoices.
o if the grant/contract has ended, departments will be required to provide an account to cover the unbilled fringe.
For more information visit https://controller.vcu.edu/cost-analysis/fringe-benefit-rates/
Categories Controller's Office