STEPS Temporary Employment fiscal year 2025 billing rate for departments

STEPS Temporary Employment continues our commitment to UK’s success by partnering with departments across the university to provide temporary staffing. 

We anticipate approval from Research Financial Services soon for the fiscal year 2025 STEPS Temporary Employment bill rate. The bill rate effective July 1, 2024, will be 20.5% of the temporary employee’s hourly wage, which is a slight increase from the previous fiscal year.

Several factors go into determining the STEPS bill rate. These factors include the Federal Insurance Contribution Act (FICA) tax, which is required for any employment arrangement at the university (except for UK students paid through student wage lines), the university's miscellaneous fringe benefits charge, and the STEPS administrative fee. The STEPS administrative fee allows us to offer a health plan credit to eligible temporary employees averaging at least 30 hours a week or having a 0.75 FTE or above and more as described below.   

Breakdown of STEPS Temporary Employment bill rate 

The total 20.5% STEPS bill rate includes the following (based on each temporary employee's hourly pay rate):

Our bill rate does not include the cost of pre-employment screenings (National Criminal Background Checks), access to UK communications, and phone and IT services due to guidelines outlined for both grants and service centers. These costs will be directly billed to a cost center for each temporary employee.   

About the 11.5% STEPS administrative fee

This fee covers the cost of health care credits and operating costs for the STEPS Temporary Employment service center, which includes applicant recruitment and selection, payroll management, and much more. 

Considering private temporary employment agency fees typically range from 35% to 50% of employees' pay, the university's 20.5% cost to provide this service in-house offers a real value. 

How STEPS Temporary Employment can help your department now

In today's challenging budget environment, an increasing number of departments have found STEPS Temporary Employment to be a high-quality, cost-effective alternative staffing solution. Our STEPS Temporary Employment team has experience staffing a wide variety of positions and welcomes the opportunity to collaborate with your department.

STEPS is also located at a new off-campus location to serve current and prospective STEPS employees who find that a more convenient option. STEPS is located at B-175 at Southcreek Park, 2365 Harrodsburg Road in Lexington. At this location, our team can meet by appointment in a convenient location with ample parking. STEPS employees can also meet with us on campus at HR’s new campus location at Mandrell Hall, 635 S. Limestone.

If you would like more information about STEPS Temporary Employment services, please contact Marty Jacks, HR Manager, at (859) 257-9561 or email marty.jacks@uky.edu.