For more information, refer to the Payroll Accounting Adjustment (PAA): Salary Over the Cap job aid.
Step 1: Determine if Salary Cap Applies
- Run Payroll Accounting – OSP Salary Cap Detail report
- Review Award Line Salary Cap column
- Blank → No Cap → Process PAA normally
- Value present → Cap applies → Continue
- Are earnings eligible for salary capping (part of total base wages across all positions, certain overrides, etc.)?
- No → Process PAA normally
- Yes → Continue
Step 2: Complete PAA Adjustment Worksheet (If Required)
- One worksheet per Salary Over the Cap Type per fiscal year
- Do NOT combine different cap types on one worksheet
- Need additional worksheet for each change in salary (e.g., AMCP in September)
Complete Required Fields:
- Employee name and ID
- Total weekly standard hours (all positions combined)
- Salary Over the Cap Type
- Monthly pay by position
- Each position entered separately
Review Results – Amount to Cap:
- No Cap → Charge full amount to FD520 + Grant
- Dollar Amount → Split funding (see Step 3)
Step 3: Enter the Payroll Accounting Adjustment (PAA)
If Amount to Cap exists:
- Enter one proposed line for allowable salary → FD520 + Grant
- Enter one proposed line for overage → Non-FD520 Fund + Grant + Salary Over the Cap Type
- Retain remaining balance on original funding (if applicable)
- Exclude unnecessary earnings (e.g., bonuses)
Critical Balancing Rule
Proposed totals equal Current totals by:
- Position
- Pay component
- Budget date
- Retro Period
If totals do not match, the PAA will not successfully complete.
Removing Salary from a Capped Grant
When reducing or removing salary from a capped grant:
- Move the direct expense (FD520 + Grant)
- Move the overage (Non-FD520 + Grant + SOC Type)
These must always be moved together.
Overage Costing Rules
- Do NOT use FD520
- Do NOT use another grant
- Retain original Grant value
- Ensure Salary Over the Cap Type worktag is present
Submission & Routing
PAA routes to the Office of Sponsored Programs (OSP) if:
- Worker earns over $150,000 annualized
- Worker has more than two positions
Questions?
Contact: OSPGrantsAccounting@osu.edu