Date: April 21, 2000
TO: UCSF Academic Department Managers and Payroll Support Staff
SUBJECT: NIH Salary Rate Cap Update
The NIH salary cap has been updated several times during the past
six months. Depending on which fiscal year from which the funding of the
award is made, a different salary cap may apply. Use the table below
to determine the appropriate monthly salary rate cap to observe for faculty
under NIH awards. The Federal fiscal year is from October 1 to September
30. The Fiscal Year can be determined by referring to the section
of the award entitled "Fiscal Information".
| Award With Federal Fiscal Year (FY) 1999 Funds | Award With Federal Fiscal Year (FY) 2000 Funds | Award With Federal Fiscal Year (FY) 2001 Funds |
| Monthly salary rate cap at $10,491.66 for an annual salary cap at $125,900 for period 10/01/98 to 12/31/99 | Monthly salary rate cap at $11,391.66 for an annual salary cap at $136,700 for period 10/01/99 to 12/31/99 | Monthly salary rate cap at $13,083.33 for an annual salary cap at $157,000 for period 10/01/00 to 12/31/00 |
| Monthly salary rate cap at $10,850.00 for an annual salary cap at $130,200 for period 01/01/00 and on. | Monthly salary rate cap at $11,775.00 for an annual salary cap at $141,300 for period 01/01/00 and on | Monthly salary rate cap at $13,433.33 for an annual salary cap at $161,200 for period 01/01/01 and on |
The rate cap cited above does not apply to total dollars spent, but to the rate at which an investigator is paid. Therefore, an investigator whose effort is only five percent paid by an NIH award will have his/her pay rate capped at the appropriate rate on that award. The department will have the option of lowering the faculty member’s salary to conform to the cap or supplementing the salary to the original negotiated rate by using discretionary funds. No other federal, state, local government, or 19900 funds should be used to supplement the salary.
If a faculty member on an NIH award earns more than the applicable monthly capped rate, the PAF must reflect multiple pay rates: the negotiated monthly rate for non-NIH funds, the applicable capped rate for NIH funds, and a fixed dollar amount on a by-agreement line. The dollar amount on the by-agreement distribution will be the differential not funded by the NIH due to the cap.
Steps in Filing a Revised PAF:
1. Identify all NIH distribution lines affected by the cap.2. Reduce the monthly rate paid on the NIH fund to the applicable monthly capped rate.
3. Establish a by-agreement distribution line for each new source of departmental funds used to bring the faculty member’s salary up to the negotiated rate:
(a) Establish a new distribution line with a Description of Service of "BYC" for the monthly dollar difference in "HSC" pay and/or4. Prepare a Payroll Expenditure Transfer on form UPAY 646-2 for all retroactive adjustments.
(b) Establish a new distribution line with a Description of Service of "BYA" for the monthly dollar difference in "REG" pay.
(c) Establish a new distribution line with a Description of Service of "HBT" for the monthly difference in "HST" pay.
(d) Establish a new distribution line with a Description of Service of "HSA" for the monthly difference in "HSR" pay.5. Obtain PAF approval through the usual channels.
Instructions for Payroll Expense Transfer to comply with NIH
salary rate cap are available on the Accounting Office web site under Instructions
for Payroll Expense Transfers to Comply withNIH Salary Rate Cap.
Background information on the NIH Salary Cap can be obtained at the Contracts and Grants Website under UCSF Policies and Procedures at: http://www.ucsf.edu/ora/cg/memo/salarycap2k.htm.
Office of the President has published similar information on its Web site at http://www.ucop.edu/raohome/cgmemos/90-06S4.html.
For questions regarding PAF coding and payroll adjustments, please
contact Gloria Baldoza at 6-9793, or gbaldoza@accounting.ucsf.edu.
For accounting questions please contact YiAnn Chou at 6-9641, or ychou@accounting.ucsf.edu.