About Summer Salary  |  Fringe Benefits   |   Indirect Cost Recovery  |  Sales Tax

About Summer Salary
Summer salary should be calculated at a rate of one-ninth of your annual salary per month of summer salary (and prorated for fractions of a month devoted to summer research). The National Science Foundation sets a maximum for summer salary at two-ninths of annual salary.

Generally speaking, you should project an estimated 4.0% annual increase when calculating summer salary. This is not a commitment on the part of the college to increase salaries at this level, and indeed salary from grants cannot exceed the actual salary level established by the college.

Fringe Benefits
Fringe benefit rate for faculty:  32.9% (as of July 1, 2012)
Fringe benefit rate for student researchers during summer:  8.0%

Student Research Stipend
The college intends to make incremental increases in the summer research stipend. Unless your prospective funding source specifies a research stipend amount, please use these rates for payment to students during the next several years:

• Summer 2013:  $4,800
• Summer 2014:  $5,000
• Summer 2015:  $5,000

You may want to explain in the budget justification that the stipend amount requested conforms to college policy.

During the academic year, student researchers (if they receive payment) are paid an hourly wage set by the Dean of Faculty. The range of rate payment is currently $8.75 to $10.00 an hour for seniors. Check with Business Affairs for more information. No fringe benefits are paid on wages during the academic year. Students may not receive payment for work for which they also receive academic credit.

Indirect Cost Recovery (called “Facilities and Administration” by NSF)
48% of salary and student wages (or stipend in summer), if the work takes place at HMC. Indirect cost recovery is not applied to fringe benefits.

24% of salary and student wages (or stipend in summer), if the work takes place somewhere other than HMC. Not applied to fringe benefits.

Indirect cost recovery is not always allowed by the funding agency, or the agency may specify a different method of calculation.

Sales Tax
On equipment and supplies:  8.75%

California sales tax of 8.75% (the Los Angeles County sales tax rate) should be added to the cost of equipment and supplies. For NSF proposals, include the sales tax in the cost of the equipment as you enter it in FastLane. You may wish to show a breakdown (item cost vs. tax) in the budget justification.