Link to Notice on Salary Cap Limitations

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updated 02.12.2014

In a meeting, we determined that at this point, we will deal with salary cap issue in this way: On actual budgets: we will use capped salaries only (like: $181,500). In order to meet the NIH opportunity for possible adjustments: mention full salaries in the Budg. Just. For example: Dr. X’s full institutional salary is $220,000. The submitted budget reflects his capped salary

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Feb 2014- how to request salaries in NIH proposals:

http://grants.nih.gov/grants/guide/notice-files/NOT-OD-14-052.html

it looks like the idea is that you request the full salary, but, at the time of award, the salary will  be adjusted to fit the cap . There is a clear example on the page.

Example 1. Individual with Full-Time Appointment (based on grant award/contract issued on or after January 12, 2014 with salary limitation of $181,500)

Individual’s institutional base salary for a FULL-TIME calendar year appointment $ 200,000
Research effort requested in application/proposal – 6 months (50%)
Direct Salary requested $  100,000
Fringe benefits requested (25% of salary) $   25,000
Subtotal $ 125,000
Applicant organization’s F&A (indirect) costs at a rate of 45% of subtotal $   56,250
Amount requested – salary plus fringe benefits plus associated F&A (indirect) costs $ 181,250
If a grant/contract is to be funded, the amount included for the above individual will be calculated as follows:
Direct salary – restricted to a RATE of $ 181,500
Divided by 12 months multiplied by 6 months (50%) $   90,750
Fringe benefits (25% of allowable salary) $   22,688
Subtotal $  113,438
Associated F&A (indirect) costs at 45% of subtotal $   51,047
Total amount to be awarded due to salary limitation $ 164,485
Amount of reduction due to salary limitation
($181,250 requested minus $164,485 awarded) $ 16,765
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