NIH released notice of the increase in the Executive Level II Salary Cap on April 3rd (NOT-OD-25-085) to $225,700 with an effective date of January 1, 2025.
Due to NIH’s delay in releasing the annual notice implementing the updated cap level, the new cap was not applied to payroll on impacted sponsored awards for pay periods from January 1, 2025 through March 31, 2025.
The new NIH Executive Level II Salary Cap will be effective in Workday on applicable sponsored awards for pay periods beginning April 1, 2025.
For impacted sponsored awards, payroll from January 1 through March 31, 2025 will have the prior/old cap level applied in Workday. To charge applicable sponsored awards up to the new salary cap for pay periods prior to April 1, 2025, a Payroll Accounting Adjustment (“PAA”) must be processed.
Beginning with payroll period April 1 – 15, 2025, Workday will apply the new cap to all applicable awards. Per NIH policy, NIH will not provide additional funds to cover the higher cap level. If adequate funds are not available to support the higher cap level, a manual adjustment via a PAA would be required to adjust the amount of salary charged to the award.
For information on documenting salary cap on proposal budgets, please see the guidance linked below from the Office of Sponsored Programs.
How do I document salary cap on proposal budgets? - UW Research
If you have any questions, please contact gcafco@uw.edu.
Thank you,
Juan Lepez on behalf of Matt Gardner
Post Award Fiscal Compliance