WHAT IS SALARY CAP COST SHARING?

The National Institutes of Health (NIH), the Substance Abuse and Mental Health Services Administration (SAMHSA), the Agency for Healthcare Research and Quality (AHRQ), the Center for Disease Control (CDC) and the Health Resources and Services Administration (HRSA) restrict the amount of direct salary an individual can be paid from their grants or contracts. These amounts are tied to the federal Executive Level salaries. Funds issued prior to December 23, 2011 are subject to Executive Level I or $199,700. Funds issued on or after December 23, 2011 are subject to Executive Level II or $179,700. Note, the determining factor is the “Issue Date” of the funding not the start date of the award or increment.

If faculty members are paid from any of the above sponsors and exceed the cap, salary cap cost sharing will be required. More information on salary cap cost sharing can be found on MAA's Salary Cap Limitations web page.

eFECS and SALARY CAP COST SHARING

Salary cap information is incorporated into the online FEC and, as a result, the salary cap addendum is no longer required. The percent amount required to be in compliance with agency salary caps, will be printed directly on the FEC under the column “Salary Cap”. Faculty members are expected to perform the amount (percent) of cost sharing effort documented in this section in addition to any direct charged effort or other cost sharing (e.g., mandatory, committed). Salary transfers may be required if there is an insufficient percentage available in a valid source budget.

Salary Cap Details

The online FEC displays Salary Cap Details for faculty subject to the salary cap. Expanding these details will show how the calculations were made. Both Executive Level I and Executive Level II salary cap limitations are calculated as determined by the coding on Grant Flag 08 for the budget the salary was distributed on.  Remember, eFECS shows the cap for the budget as of today, which may not be the cap it originally had when it was set up. See the glossary explanation of the codes associated with "GrantFlag08" by doing a search for "GrantFlag08" in the MyFD glossary.

Learn more about salary cap limitations from Management Accounting and Analysis.

Below is an example of those details.