Calculations Employee benefits and payroll taxes must be included as part of personnel costs. If a salary or a portion of a salary is being paid through a grant, it is important to include that proportion of the fringe benefits. Fringe benefits include such costs as social security taxes, health insurance, dental insurance and long-term disability insurance. Once you have determined the costs of all of the fringe benefits allocated to employees within your organization, you can divide that by total payroll and arrive at a benefit rate.