Calculation of Salaries 9808
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 A21,
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:
 Faculty with Academic Appointment (9 months)
A faculty member's academic salary must be annualized
to determine the monthly salary.

 Known Factor: Academic Salary
Divide the academic salary by 19.5 biweeklies,
multiply by 26.1 biweeklies, 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 biweeklies and divide the
result by 80 hours.
 Known Factor: Biweekly salary
Biweekly salary multiplied by 26.1 biweeklies,
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 biweekly by 80 hours.
Reminder: The academic and summer appointments in a
proposal budget must be listed on separate lines in the
budget.
 Annual Appointment (12 months)

 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 biweeklies and then divide the
result by 80 hours.
 Known Factor: Biweekly salary
Multiply the Biweekly salary by 26.1 biweeklies,
divided by 12 months, multiplied by the number of months
and then by the FTE.
If the Sponsor requires an hourly rate, divide the
biweekly by 80 hours.
Send comments to JoAnn Moretti, Director at
jmoretti@fau.edu, or
Nancy Thoman, Content Editor at
nthoman@fau.edu.
