In the event that you must retroactively enforce a lower NIH Cap for pay transactions that have occurred in the past, the following payroll adjustments should be made:
Example: Effective January 1, 2012 the NIH CAP Rate on a fund/project was lowered from $199,700 ($16,641.67/MO) to $179,700 ($14,975.00/MO). The salary differential of $116.67 (7% x (16,641.67-14,975)) is to be paid on non-federal fund
Step 1 - Update the EDB
- End date the original distribution lines, using the last date the old NIH salary cap rate was effective for your funding.
- Create new distribution lines that will become effective with the start of the new NIH salary cap rate. Include distribution lines for your original paying DOS code and fund source, as well as, lines for the required by agreement DOS code to pay the offsetting salary differential from discretionary funding.
- Original Distribution is ended 12/31/11
- New Distributions are effecgive 1/1/12
Step 2 - Correct the Pay Transactions to Reflect the Correct DOS Codes and Funding
- RX transactions are prepared to reverse the original funding and earnings on DOS HSC and an LX transaction is prepared to split the earnings between HSC and BYC and funds 29839 and 60260.*
- Refer to the Late/Reduce Pay Time Reporting Function (EDLR) instructions for a step-by-step guide for performing an LX/RX transaction.
- Alternatively an Uncapped-to-Capped Payroll Expense Transfer (U2C-PETU) can be completed or a combination EDLR/PET can be used. To explore alternatives contact the Payroll Office.
*This is the only situation for which it is appropriate to use an EDLR (LX/RX) transaction for Full Accounting Unit (FAU) corrections. In all other instances use an Uncapped-to-Capped Payroll Expense Transfer. There will be a small residual benefit amount that cannot be moved by LX/RX that will remain on the original fund source.