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Effort Reporting at UTHealth

Salary Cap Calculations

2016 CAP = $185,100

2015 CAP = $183,300

NOTE:  There may be an additional federal cap applicable to the effort report due to federal legislation raising the cap maximum from $183,300 and it will affect effort reporting beginning on the 1/16 report.

The salary cap amount for each half year is calculated as follows using the 2015 Salary Cap:

January – June = 181 days (182 if leap year)
July – December = 184 days

$183,300/365 days = $502.19/day

$502.19/day x 184 = $92,402.96 (salary cap amt. for 6 month period July – Dec.)
$502.19/day x 181 = $90,896.39  (salary cap amt. for 6 month period January – June)

  • These calculation amounts could vary slightly due to rounding each period.  Click the CAP?  mark for a project on the effort report to see exactly what amount is being used each period.
  • This is the amount that the percentage of actual pay, which is based on the cap, is being calculated against.  It will, with small variance, again due to rounding, match the Effort Report Worksheet final figure.
  • The system now also calculates the minimal cost share by using the actual salary amount before the cap to calculate, in essence, what the pay would have been without the imposed cap.
  • To get total salary for an individual in ECRT, go to the Certification Payroll Report.  Double the total at the bottom of the report, for example:  $142,695.48 = ~ ½ of total base of $285,391.

Effort Calculation

Individuals with 1 FTE, which is the majority, will have the difference between the cap paid amount, and what should have paid calculated as follows:

$142,695.48 = ~ ½ of total base of $285,391 (4 cent difference due to HCM systemic rounding).  This is the amount used to calculate the cost share portion in the system.

$142,695.48 x 3.49% adjusted pay = $498,007.23/$100,670.08 (salary cap maximum amount of pay)
                                                                    = 4.946%
(4.95% rounded).

4.95% - 3.49% = 1.46%

1.46% is, then, the minimum effort adjustment needed.  Obviously, this can be more depending on amount of effort actually committed.  (E.g., 5% was actual vs. 4.95%)

Should there be an occurrence of an individual less than 1.0 FTE, the system calculates what their salary would be at 1.0 in order to be able to ascertain this adjustment.  For example:

Annual Base Salary = $200,000
FTE = 0.75
Salary Cap = $183,300
Amount of actual pay against salary cap in system = 10%
$200,000/.75 = $266,667 (Adjusted amount salary would be if 1.0 FTE)

$266,667*.10 (% paid in system) = 26,667/$183,300 (salary cap) = .1455 or 14.55%

14.55%-10% = 4.55%

4.55% is, then, the minimum effort adjustment needed.  Again, this can be more depending on amount of effort actually committed.