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Salaries, Wages, and ERE

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07/27/2017 - 10:50am

Salaries, Wages, and ERE

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General Requirements

Mandatory Annual Escalation Rate

Determining Salary/Appointment Type Using PeopleSoft

Budgeting Salary and Wages - General

Student Salaries and Wages

Salary Caps and Limitations

NIH Salary Cap

NSF Salary Limitation

Other Sponsors Imposing Salary Caps

Federal Cost Reimbursable Contracts

Employee Related Expenses (ERE/Fringe Benefits)

 

General salary and wage information

Requirements

  • Salary rates for personnel employed on sponsored projects must be consistent with sponsor guidelines as well as the rates paid from university-administered funds. 
  • Salaries charged to sponsored projects must coincide with the period during which the effort on the project is expended.
  • Normally only salary for faculty, technicians, research associates and assistants, postdoctoral associates and other technical or programmatic personnel that are necessary to meet the goals of the project are allowed as direct costs.
  • Inclusion of administrative and clerical salaries as direct costs require compliance with ASU's CAS exception practices.
  • Compensation and new job classifications must conform to ASU Human Resources classifications.
  • Additional pay (above institutional base salary and excluding summer salary) must be clearly stated in the budget and budget justification.  Review of policy ACD 510-04 should be completed prior to budgeting for additional pay.
  • Budget additional pay (intra-university consultant pay) as salary plus ERE.

Mandatory annual escalation factor

Unless expressly prohibited in writing by the sponsor, a 3% escalation factor for salaries must be budgeted for each year of the project.  Note: While NIH suggests a lesser escalation rate, they do not prohibit the use of the ASU 3% escalation.    Therefore, NIH budgets should also use the 3% inflation factor.

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Salary and wages

Determining Salary/Appointment Information in PeopleSoft

  • Use the Compensation tab to confirm salary.
  • Although the Compensation tab contains appointment (frequency) information, it is recommended that you use the Payroll tab to identify what kind of appointment or contract an employee is on.

Pay Group (and Frequency) Codes you will commonly see/use:

Pay Group Frequency Code Definition

A12

Bi-Weekly

9 months paid over 12 months

ACD

ASU20

9 months paid over 9 months

SAL

ASUBW

12 month staff appointment paid over 12 months

FSW

ASU06

Faculty Summer Salary

STU

Hourly

Hourly Student

 

Budgeting Salary and Wages

List the amount of time to be spent by each ASU employee who will work on the project and the rate of pay. Time can be shown in percent of effort; number of months; or in person-hours (days, weeks or months).  Percent of full-time effort or number of months is the preferred method.

Employment Period Timeframe Weeks Days Hours

1 month

 

  4.3

22

176

Academic Year (AY)

9 months

Mid Aug - Mid May

 

39.0

 

195

 

1560

Fiscal Year (FY)

12 Months

July 1 - June 30

 

52.0

 

260

 

2080

Summer

3 Months

Mid May - Mid August

 

13.0

 

65

 

520

For budgets which use hourly rates:   See Hourly Rates Proposal Development Information for the statement that is to be included in the budget justification.

Danger Pay (DPA): See Other Direct Costs guidance.

Student salary and wages:

Graduate Research Assistant/Associate salaries:  Based upon the Graduate College policy, GRA effort during the AY cannot exceed 20 hours per week and is thus considered 100% effort.  It is recommended that 100% AY effort (20 hours per week) be presented as 4.5 AY months on sponsor budget forms, with accompanying justification language identifying 4.5 AY months to be full-time during the AY. For employment during other times of the year, see: https://cfo.asu.edu/hr-acafaq2#2.  Per Provost's office, the minimum AY salary is $14,900 for 20 hours per week.   For the full unit-approved salary range, contact the unit's Business Operations Manager. The Business Operations Manager can also provide information about the unit's implementation of the Affordable Care Act.

Hourly Undergraduate and Graduate student wages: For information about the Affordable Care Act and hiring hourly students, see: https://cfo.asu.edu/hr-acafaq2#2.  Budget at rates between ASU's minimum wage of $7.90 per hour and the ASU maximum of $50.00 per hour.  Since customary rates vary from department to department, contact the student's departmental  Business Operations Manager (BOM) or RA to determine the most appropriate rate.  Increases may be added based on experience. Contact Student Employment Office at 5-5186 for further information about on-campus student employee compensation.

Salary caps and limitations

NIH salary cap:

Observe the current NIH annual salary rate limitation.   For previous fiscal year award salary cap information, click here.   This cap applies to grants and cooperative agreements.

NSF salary limitations:

  • NSF funds may not be used to increase the base salaries of project personnel.
  • NSF funds may not be used to reimburse faculty members for consulting or other time in addition to a regular full-time organizational salary covering the same general period of employment. Exceptions may be considered under certain NSF grants for teaching weekend and evening classes or working at remote locations.
  • As a general policy, NSF limits salary compensation for senior project personnel to no more than two months of their regular salary in any one year.  This limit includes salary compensation received from all NSF-funded grants.
  • At proposal time, requests for exceptions to salary limitations should be 1) disclosed in the proposal budget and 2) justified in the budget justification.  The NSF award will serve as documentation of any approval or denial of the request.
  • If after an award is made, increases or decreases in the senior project personnel person months devoted to the project will occur, the PI must certify in writing and the unit must document to its files that the change does not cause the objective or scope of the project to change.  No prior NSF approval is necessary as long as these requirements are met.   Changes to person months compensated, which impact the objectives or scope of work, require prior NSF approval, using the NSF FastLane’s notifications module.

For additional information about Senior Project Personnel Salaries and Wages, see NSF's Grant Proposal Guide. 

Other Sponsors Imposing Salary Caps:

Administration for Children and Families (ACYF)

Salary caps vary from sponsor to sponsor. Refer to FA and sponsor guidelines to determine the salary cap in effect.

Administration for Community Living (ACL)

Administration for Native Americans (ANA)

Administration on Aging (AOA)

Agency for Healthcare Research and Quality (AHRQ)

Bureau of Health Professions (BHPR)

Centers for Disease Control and Prevention (CDC)

Center for Global Health (CGH)

Centers for Medicaid & Medicare Services (CMS)

Consumer Information & Insurance Oversight (CIIO)

Health Resources and Services Administration (HRSA)

National Center for Child Abuse & Neglect (NCCAN)

National Institute of Justice (NIJ)

Office of Community Services (OCS)

Office of Planning, Research, and Evaluation (OPRE)

Patient-Centered Outcomes Research Institute (PCORI)

Substance Abuse and Mental Health Services Administration (SAMHSA)

Federal Cost Reimbursable Contracts

The total compensation (defined as “salary and all benefits”) paid to any employee under a Federal cost-reimbursable contract is limited to $487K per year.  If an individual Federal agency has a lower limit for contracts, either on salaries (institutional base salary) or total compensation (salary and ere), then that lower cap applies.   Grants and cooperative agreements are not covered under this rule.   For clarifications, contact rahelp [at] asu [dot] edu.

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Employee related expenses (aka ere or fringe benefits)

Employee
Category

Employee
Class**

FY 2018

FY 2019

FY 2020

FY 2021

 

FY 
2022

 

 FY 2023 and beyond

Faculty

FacAdmAppt (FAA)

Faculty (FAC)

 

27.10%

 

27.91%

 

28.75%

 

29.61%

 

30.50%

Escalate at 3% per year for FY2023 and beyond

Staff

AcademicProf (ACP)

Admin (ADM)

ACPRAdmAp (APA)

Classified (CLS)

Srvc Prof (SRP)

 

 

 

35.70%

 

 

 

36.77%

 

 

 

37.87%

 

 

 

39.01%

 

 

 

40.18%

Postdoctoral Associate

PostDoc (DOC)

25.80%

26.57%

27.37%

28.19%

29.04%

RA/TA

 

10.20%

10.51%

10.83%

11.15%

11.48%

Student (Hourly)/ Graduate  or Undergraduate

 

 1.10%

 1.13%

 1.16%

 1.19%

 1.23%

Part Time and Non-Benefits Eligible*

 

 9.20%

 9.48%

 9.76%

10.05%

10.35%

*Note:

  • Any start date of six months or more into a fiscal year will use the following fiscal year’s rates.
  • If any one of an employee’s jobs is benefits eligible, the employee will be provided benefits and all active jobs will be charged ERE based on the employee class.
  • Benefits eligibility is determined by examining the duration (permanence) of the job and the FTE.
  • When a faculty member, staff member, or postdoctoral employee's overall employment from all ASU sources will be less than .50 FTE, the employee will not be benefits eligible.
  • An employee can have a .50 or greater FTE job and still not be benefits eligible. A job with a duration classified as short-term temporary, seasonal or PRN will not be benefits eligible regardless of FTE.
  • Additional pay (intra-university consultant fee) is subject to ERE.

Refer to the Employment Type Definitions and Benefits Eligibility Summary document from ASU Human Resources for further details.

**Employee class codes are noted in each employee’s PeopleSoft file under the Job Information tab.  For further information about employee class codes, see this ERE Rates document from ASU Financial Services.

All proposals must be budgeted in accordance with the above chart. 

A detailed breakdown of the ERE rates for FY18 is available in the latest ERE Rate Analysis document.

Information on historical ERE rates is found in this Historical ERE Rates document.

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