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NIH Cap calculation for full time person with 12 month appointment
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This Excel template shows an example and provides a calculation program for determining the amount that
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can be charged to an NIH project under the cap. The examples uses a cap of \$125,000. The actual
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applicable NIH cap and actual applicable data for the individual should be input in the appropriate gray box
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below. Check grant/contract award and RPH 3.8 for applicable salary cap. For further information see
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Research Policy Handbook Chapter 3.8 (http://www.stanford.edu/dept/DoR/rph/3-8.html) and
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Salary Caps Resource page (http://www.stanford.edu/dept/DoR/Resources/salcap.html)
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The amount over the cap is charged to Expenditure Type 51190 (Unallowed Salary Over Cap).
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Example of Calculating the amount chargeable to NIH project if salary is over agency cap:
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Facts:Example 1
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GFY98 PHS salary cap\$125,000
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SU base salary\$150,000
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NIH project direct-charged effort % FTE10%
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NIH project cost shared effort % FTE10%
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Capped salary charge calculation:
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Annualized salary chargeable to NIH account\$12,500.00
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Annualized salary chargeable to cost share account\$12,500.00
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Salary chargeable to NIH account per pay period\$520.83
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Salary chargeable to cost share account per pay period\$520.83
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Salary over the cap for direct plus cost shared effort
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(Charge to nonsponsored PTA, Unallowed Exp Type 51190)\$208.33
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Template for calculation (See notes below):
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Use results ONLY if line 36 exceeds line 34, meaning SU salary rate exceeds cap
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Enter data below:
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NIH salary cap (XXX,XXX)formulas will calculate
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based on this data.
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Stanford base salary (XXX,XXX)
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Person's % FTE direct charged to project with salary cap (XX%)
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Person's committed cost sharing % FTE on project with cap (XX%)Percentage to
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enter in LD
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Amount per pay period direct charged to capped project\$0.00#DIV/0!
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Amount per pay period cost shared on capped project\$0.00#DIV/0!
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Amount per pay period over the cap for direct plus cost shared effort
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(Charge to nonsponsored PTA, Unallowed Exp Type 51190)\$0.00#DIV/0!
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Total % should = sum of % effort proposed on grant and cost shared#DIV/0!
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(may need to check
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rounding of %'s)
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Note 1: Sabbatical leave is not pay for work, hence is not in %FTE and should not be included in above calculations.
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Note 2: In order to properly reflect the cost of effort in the F&A (indirect) cost calculations when a salary is
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capped, the salary above the cap must be identified in the accounting system. This is accomplished in the Labor Distribution. If you must make a journal entry to correct an error in application of the cap use the "unallowed salary over cap" expenditure type - 51190.
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Note 3: Use NIH_sal_cap_multi_accounts template to calculate percentages for many account lines and awards at once.
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