POLICIES & PROCEDURES
Calculation of Salaries 98-08
April 24, 1998

Purpose of Policy:

To establish a consistent policy for the calculation of salaries on sponsored research proposals.

Background of Policy:

Federal Circular A-21, Section C10a, entitled "Consistency in estimating, accumulating and reporting costs" requires the estimated pricing of salaries in proposals be based on the current salaries at the University. Salaries should always be expressed as monthly Full Time Equivalents (FTE) unless the sponsor's requirements specify differently.

An annual salary increase should be included in the salaries calculation. The percentage of increase to be used varies from year to year so that the current percentage should be verified with Sponsored Programs.

The following formulas may be used to calculate salaries on a proposal.

Procedure:

1. Faculty with Academic Appointment (9 months)

   A faculty member's academic salary must be annualized to determine the monthly salary.

   1. Known Factor: Academic Salary

      Divide the academic salary by 19.5 bi-weeklies, multiply by 26.1 bi-weeklies, divide by 12 months, multiply by number of months and then by FTE.

      If the Sponsor requires an hourly rate, then divide the academic salary by 19.5 bi-weeklies and divide the result by 80 hours.

   2. Known Factor: Bi-weekly salary

      Bi-weekly salary multiplied by 26.1 bi-weeklies, divide by 12 months, multiplied by the number of months and then by the FTE.

      If the Sponsor requires an hourly rate, then divide the bi-weekly by 80 hours.

      Reminder: The academic and summer appointments in a proposal budget must be listed on separate lines in the budget.

2. Annual Appointment (12 months)
   1. Known Factor: Annual Salary

      Divide the annual salary by 12 months, multiplied by the number of months then by the FTE.

      If the Sponsor requires an hourly rate, divide the annual salary by 26.1 bi-weeklies and then divide the result by 80 hours.

   2. Known Factor: Bi-weekly salary

      Multiply the Bi-weekly salary by 26.1 bi-weeklies, divided by 12 months, multiplied by the number of months and then by the FTE.

      If the Sponsor requires an hourly rate, divide the bi-weekly by 80 hours.

Send comments to JoAnn Moretti, Director or Penny Ashwanden, Content Editor.

Updated July 2006