The National Institutes of Health (NIH) and the Agency for Healthcare Research and Quality (AHRQ) published updated information regarding the Fiscal Year 2023 salary limitation under NOT-OD-23-056 (opens in new window) and NOT-HS-23-005 (opens in new window) respectively. The Further Consolidated Appropriations Act, 2023 (Public Law 117-328 (opens in new window)), signed into law on December 29, 2022, restricts the amount of direct salary which may be paid to an individual under an HHS grant, cooperative agreement, or applicable contract to a rate no greater than Executive Level II of the Federal Executive Pay Scale. Effective January 1, 2023, the Executive Level II salary level is $212,100.
Proposals
The Office of Sponsored Research (OSR) implemented use of the new salary cap on January 6, 2023, with an effective date of January 1, 2023, for all new, renewal, supplement, or resubmission NIH proposals. To do so, eProposal was updated to include the new salary cap option: $212,100- FY2023 NIH Salary Cap 01/01/23-Forward.
As a reminder, please be sure to indicate in the budget justifications when personnel are over the salary cap.
Existing Awards
Rebudgeting
The new salary cap may be used for existing awards if adequate funds are available, as described in the NIH Notices. If the increased salary cap is adopted on existing awards, you will be allowed to rebudget funds to accommodate the new cap; however, no additional funding will be provided by the sponsor.
Payroll Processing
UCSF will use an effective date of January 1, 2023, for payroll processing using the new salary cap. The HHS cap type in the UCPath system has been updated to $212,100 with an effective date of January 1, 2023.
Adjusting Payroll
To avoid the need for salary cost transfers, please complete funding entry changes in UCPath prior to January funding entry deadlines.
To update payroll funding prospectively, create a new effective-dated funding record using the Salary Cap/MCOP Funding Worksheet and apply the updated “Cap Rate” on appropriate earnings distribution lines. While use of the Faculty Salary Calculator (FSC) worksheet is never required for funding entry, in keeping with past practice the FSC worksheet has been updated to include the new salary cap option, $212,100-FY2023 NIH Cap 01/01/23.
Training materials and additional resources are posted on the Information for Funding Entry Initiators and Approvers (opens in new window) and Information for Salary Cost Transfer Initiators and Approvers (opens in new window) pages on the UCPath website.
Contacts
- For questions regarding application of the new salary cap to proposals, email [email protected].
- For questions regarding application of the new salary cap to existing awards, contact the CGA Compliance Service Desk.
- Funding Entry and Salary Cost Transfer Initiators and Approvers should contact the Controller’s Office Solution Center directly for support updating funding distributions in UCPath.