How does the NIH salary cap affect budgeting and effort reporting?
Check for the current NIH salary cap at http://grants.nih.gov/grants/policy/salcap_summary.htm Open this Excel salary cap worksheet for help with calculations. Faculty whose salary rates exceed the NIH salary cap must record the difference between their total amount of effort committed and the amount that is chargeable to NIH. This portion of their effort which is valued above the NIH salary cap must be tracked in the financial system by adding the award’s project to salary transactions paid by the University. The mechanism is the same as it is for recording cost-share, but this pay is not considered cost-share because it is an unallowable cost to the award. Any time a PI who is over the salary cap commits effort on an NIH project, at least part of it must be met by attaching the project to part of his/her University-paid salary. Example #1: Dr. X has an annual (12 month) salary of $200,000, or $16,667 per month. The current NIH salary cap is $196,700, or $16,392 per month, so $275 of
