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Salary Cap Example 2

Individual with Half-Time Appointment (based on a grant award/contract issued on or after January 12, 2014 with salary limitation of $181,500)

Individual’s institutional base salary for a HALF-TIME calendar year appointment $100,000
Research effort requested in application/proposal – 1.8 months (30% of 6 months)
Direct Salary requested $30,000
Fringe benefits requested (25% of salary) $7,500
Subtotal $37,500
Applicant organization’s F&A (indirect) costs at a rate of 45% of subtotal $16,875
Amount requested – salary plus fringe benefits plus associated F&A (indirect) costs $54,375
If a grant/contract is to be funded, the amount included in the award for the above individual will be calculated as follows:
Direct salary – restricted to a RATE of 50% of $181,500 $90,750
Divided by 6 months multiplied by 1.8 months (30%) $27,225
Fringe benefits (25% of allowable salary) $6,806
Subtotal $34,031
Associated F&A (indirect) cost at 45% of subtotal $15,314
Total amount to be awarded due to salary limitation $49,345
Amount of reduction due to salary limitation
($54,375 requested minus $49,345 awarded)