Salary Cap – Cost Share
Cost Share Calculations when Institutional Base Salary exceeds NIH Salary Cap.
This is a descriptive list of values used to determine the Cost Share Total amount.
- Institutional Base Salary = Total Salary as shown in Infoporte (Base Rate plus any Supplemental Rates)
- Salary Cap
- Cost Share Base Salary
- Percent Effort
- Cost Share Salary
- Fringe Percent Rate
- Cost Share Fringe Amount
- Cost Share Total
One thing to remember is DO NOT USE the Health insurance component when calculating cost share.
- The Health insurance component calculation is prorated to Percent of Effort.
- All of the Health insurance component amount is collected when calculating the Salary within the Salary Cap.
Cost Share Total amount should be calculated as follows.
- Institutional Base Salary – Salary Cap = Cost Share Base Salary
- Cost Share Base Salary x Percent Effort = Cost Share Salary
- Cost Share Salary x Fringe Percent Rate = Cost Share Fringe Amount
- Cost Share Salary + Cost Share Fringe Amount = Cost Share Total
Cost Share is calculated only on the first year (initial period).
Example
Dr. Meredith Grey is a FP Practice Plan member (1/31/19 rates) with an Institutional Base Salary of $210,000 wants to devote 10% Effort on a project when the NIH Salary Cap is $192,300.
What is the Salary Cap value to add to the Budget section of the IPF in RAMSeS ?
- Institutional Base Salary – Salary Cap = Cost Share Base Salary
- $210,000 – $192,300 = $17,700
- Cost Share Base Salary x Percent Effort = Cost Share Salary
- $17,700 x 10% = $1,770
- Cost Share Salary x Fringe Percent Rate = Cost Share Fringe Amount
- $1,770 x 29.426% = $521
- Cost Share Salary + Cost Share Fringe Amount = Cost Share Total
- $1,770 + $521 = $2,291
In this case $2,291 would be added to the mandatory cost share area within the Budget section of the IPF in RAMSeS.
A Cost Share calculator has been added to the Calculator worksheet in the Sponsored Programs Office Budget Template Workbook.
Please visit the Sponsored Programs Office Downloads page for your copy of the SPO Budget Template Workbook.
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