Professor Leland Stanford earns a total base salary of $150,000 per year. The salary cap in this example is $125,000.

NOTE: Actual salary caps may fluctuate over time. Be sure to use the current correct applicable cap when calculating allowable and unallowable salary.

In this situation, Professor Stanford will be on sabbatical leave 1/1/99 - 3/31/99 and will work on three sponsored projects as follows during this period:

1. 10% effort on award PTA2222222-1-PABCD,
   with the salary cap, from 8/98 through 7/99
   
   
2. 15% effort on award PTA3333333-1-PAEFG,
   also with the salary cap, from 6/98 through 5/99
   
   
3. 10% effort on award PTA4444444-1-SDDAB,
   which does not include a salary cap, from 1/99 through 12/99.

Where the salary cap is applicable, calculate the maximum which can be charged per pay period by dividing the total capped salary ($125,000. in this example) by 24 (the number of pay periods in a year), and multiplying that by the percent of effort on the NIH project.

Professor Stanford's actual pay per pay period is $6250 ($150,000 / 24). The maximum allowed under the salary cap is $5208 ($125,000 / 24). The percent of effort on the NIH project multiplied by the difference between these amounts is an unallowable cost.

A Note about Oracle Labor Distribution:

The Oracle Labor Distribution Labor Schedules require percentages to be entered rather than dollar amounts. Templates are available to assist you in these calculations, as panels require 100% of the Stanford pay to be distributed and the calculations get complicated!

Don't forget to use the special "RBE (Regular Benefits Eligible) Unallowed Salary Over Cap" Expenditure Type 51190 to capture the salary percentage over the cap. The use of this Expenditure Type flags the dollars as unallowable. Stanford must include those dollars in its Organized Research or other applicable base.

The tables below how Professor Stanford's Labor Schedule must be set up (remember to enter the calculated percent, not the percentage of effort). The tables represent different points in time between 8/98 and 12/99, while Professor Stanford is working on the projects listed above.

Information in Labor Schedule effective on 9/1/98 Projects A and B, listed above, are active.
Project	Task	Award	Exp Type	Percentage	For illustration only These columns do not appear in LD.
					Corresponding Amount	Calculation
2222222	1	PABCD	51115	8.333%	$520.83	$125,000/24 * 10%
3333333	1	PAEFG	51115	12.50%	$781.25	$125,000/24 * 15%
1111111	1	AABCD	51190	4.167%	$260.42	($150,000 - $125,000)/24 * (10% + 15%)
1111111	1	AABCD	51115	75.00%	$4,687.50	$150,000/24 * 75%
				100%	$6,250.00

---

Information in Labor Schedule effective on 1/1/99 Sabbatical and new schedule line for Project C starts. Projects A and B still active.
Project	Task	Award	Exp Type	Percentage	For illustration only These columns do not appear in LD.
					Corresponding Amount	Calculation
2222222	1	PABCD	51115	8.333%	$520.83	$125,000/24 * 10%
3333333	1	PAEFG	51115	12.50%	$781.25	$125,000/24 * 15%
1111111	1	AABCD	51190	4.167%	$260.42	($150,000 - $125,000)/24 * (10% + 15%)
4444444	1	SDDAB	51115	10.00%	$625.00	$150,000/24 * 10%
1111111	1	AABCD	51115	0.0%	-
Sab Project	1	Sab Award	51115	65.00%	$4,062.50	$150,000/24 * 65%
				100%	$6,250.00

---

Information in Labor Schedule effective on 4/1/99 Sabbatical ends. Projects A, B and C still active.
Project	Task	Award	Exp Type	Percentage	For illustration only These columns do not appear in LD.
					Corresponding Amount	Calculation
2222222	1	PABCD	51115	8.333%	$520.83	$125,000/24 * 10%
3333333	1	PAEFG	51115	12.5%	$781.25	$125,000/24 * 15%
1111111	1	AABCD	51190	4.167%	$260.42	($150,000 - $125,000)/24 * (10% + 15%)
4444444	1	SDDAB	51115	10.00%	$625.00	$150,000/24 * 30%
1111111	1	AABCD	51115	65.00%	$4,062.50	$150,000/24 * 65%
Sab Project	1	Sab Award	51115	0.0%	-
				100%	$6,250.00

---

Allocate Labor Cost Panels effective on 6/1/99 Schedule line for Project B ends. Projects A and C remain active.
Project	Task	Award	Exp Type	Percentage	For illustration only These columns do not appear in LD.
					Corresponding Amount	Calculation
2222222	1	PABCD	51115	8.333%	$520.83	$150,000/24 * 10%
3333333	1	PAEFG	51115	0.00%	-
1111111	1	AABCD	51190	1.667%	$104.17	($150,000 - $125,000)/24 * 10%
4444444	1	SDDAB	51115	10.00%	$625.00	$150,000/24 * 10%
1111111	1	AABCD	51115	80.00%	$5,000.00	$150,000/24 * 80%
				100%	$6,250.00

---

Information in Labor Schedule effective on 8/1/99 Schedule line for Project A ends. Only Project C remains active.
Project	Task	Award	Exp Type	Percentage	For illustration only These columns do not appear in LD.
					Corresponding Amount	Calculation
2222222	1	PABCD	51115	0.00%	-
3333333	1	PAEFG	51115	0.00%	-
1111111	1	AABCD	51190	0.00%	-
4444444	1	SDDAB	51115	10.00%	$625.00	$150,000/24 * 10%
1111111	1	AABCD	51115	90.00%	$5,625.00	$150,000/24 * 90%
				100%	$6,250.00