Apply a Salary Cap

Research, Sponsored Projects   |   Approved October 9, 2015

Purpose

Ensure that mandated salary limitations be adhered to in sponsored projects.

Applicability

Investigators and administrators preparing proposal budgets or managing personnel on sponsored projects. A Salary Cap is defined as a maximum annual rate of UMB salary for full-time effort that can be charged to an award. In particular, the Department of Health and Human Services (DHHS) agencies are subject to limitations set by the federal government.

Instructions

1. Identify UMB personnel who will be paid from the sponsored project and confirm the Institutional Base Salary (IBS) for each with the assigned payroll representative.
2. Review the funding source regulations and policies to determine whether the sponsor has set a Salary Cap. Contact the SPA Proposal Team for assistance with this determination.
3. Compare the person’s IBS with the Salary Cap. If the IBS exceeds the Salary Cap:
   1. Calculate the salary that will be charged to the sponsored project by multiplying the salary cap amount by the effort the person will commit to the project.
   2. To determine the balance that will not be charged to the project, multiply the IBS by the effort the person will commit to the project, and subtract the amount that is being charged to the project. This balance is tracked in Quantum Financials using a separate Project ID. At the time the award is received, or at any time during the project when an investigator’s IBS exceeds the Salary Cap, request a companion Project ID to track the amount above the Salary Cap.