Georgia Tech complies with salary rate limitations in projects funded by agencies of the United States government that are statutorily required to implement such limitations. The amount of salary above the cap for faculty and other researchers except Graduate Research Assistants receiving tuition remission shall be paid by the employing unit.

An agency’s salary cap must be compared to the individual’s Institutional Base Salary (IBS), the compensation paid by Georgia Tech for an employee’s appointment, whether that individual’s time is spent on research, teaching, administration or other activities. IBS includes an individual’s regular salary (e.g. academic appointment) and salary/stipend from any additional assignment (e.g. chair of a department). The IBS does not include incidental, onetime payments. Also excluded from the IBS is salary paid directly to an individual by an organization outside Georgia Tech.

An individual’s IBS, rather than the capped rate, is used when calculating percentage of effort and the difference between the capped rate and the individual’s IBS is accounted for as cost sharing in order for Georgia Tech to meet the requirements of the Cost Accounting Standards incorporated in Uniform Guidance found at 2 CFR 200.