Charging Additional Benefits to Externally Sponsored Projects

Additional/Extra benefits and benefits for temporary employees are typically not allowed on federal awards unless there is a federal requirement to pay those costs.  

Additional Benefits
Additional benefits for temporary employees is not allowed.  The University of Iowa’s federally negotiated fringe benefit rate agreement does not include health insurance for temporary employees so paying those additional benefits from federal funds is a deviation from that agreement and unallowable on fund 500/510. This does not preclude the department or college from using non-fund 500/510 funds to pay for additional benefits.

Affordable Care Act (ACA)
ACA benefits are different than Additional Benefits, these are a federal requirement and are allowed on Fund 500/510. Use this link for ACA information. 

Last updated: 09/28/2026