NIH Salary Cap

							NIH Salary Cap
NIH imposes a limitation on the rate of pay
individuals may receive as compensation from
NIH funds
For calendar year 2004, the cap is $175,700 per
year
NIH also mandates that the portion of the
individual’s salary that represents the difference
between the capped rate and the actual rate may
not be received from federal sources
The rate can and usually does change on an annual
basis
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  NIH Salary Cap
For example:
  PI with a salary of $200,000 per year
  25% paid by an NSF grant; 25% by an NIH
  grant; 50% by CIT funds
   The PI may only be paid $43,920 from NIH
    funds (he will be paid $50,000 from NSF
    funds)
   The difference of $6,080, which exceeds the
    NIH cap, can be paid from non-federal sources
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  NIH Salary Cap
  At Caltech an excel spreadsheet is available
  to assist division/center personnel in
  calculating the appropriate percent of time
  needed to input into the payroll system in
  order to maintain consistency with the NIH
  salary cap
  This document also serves the purpose of
  providing an audit trail

http://atc.caltech.edu/Finance/policies.htm
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  NIH Salary Cap
Procedure:
 Prior to initiation of any payroll transaction from NIH
 funds, the division determines which employees are above
 the salary cap
 Divisions utilize the NIH salary cap template to determine
 the percentage of salary that can be charged to relevant
 NIH grants, and what portion should be charged to non-
 federal funds
 Divisions should retain completed NIH salary cap template
 as part of the record of that payroll transaction

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  NIH Salary Cap
Procedure:
  On annual basis, and at the end of each NIH
  award’s competitive cycle, Project
  Accounting will run a report on that award
  to verify that all salary payments were
  consistent with the NIH salary cap in effect
  at the time of the payment, and work with
  the Division/Center to make necessary
  adjustments
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