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Compensation for Personal Services

Purpose of Policy

To establish procedures for calculating total compensation for personal services charged to sponsored agreements.


Uniform Guidance 2 CFR 200 (200.430) states:

“Compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal award, including but not limited to wages and salaries. Compensation for personal services may also include fringe benefits which are addressed in 200.431 Compensation-fringe benefits. Costs of compensation are allowable to the extent that they satisfy the specific requirement of this part, and the total compensation for individual employees.”

Uniform Guidance 2 CFR 200 (200.4303.h.2) states:

“Charges for work performed on Federal awards by faculty members during the academic year are allowable at the IBS rate. Except as noted in paragraph (h)(1)(ii) of this section, in no event will charges to Federal awards, irrespective of the basis of computation, exceed the proportionate share of the IBS for that period. This principle applies to all members of faculty at an institution. IBS is defined as the annual compensation paid by an IHE for an individual’s appointment, whether that individual’s time is spent on research, instruction, administration, or other activities. IBS excludes any income that an individual earns outside of duties performed for the IHE. Unless there is prior approval of the Federal awarding agency, charges of a faculty member’s salary to a Federal award must not exceed the proportionate share of the IBS for the period during which the faculty member worked on the award.”

Policy Issues

  1. The employees’ compensation will be the annual guaranteed amount as determined by the Office of the General Counsel
  2. The employees’ guaranteed salary will be included in the Effort Reporting System
  3. The employees’ guaranteed salary will be reported on all proposals submitted to funding agencies

Last Reviewed

Last reviewed on 03/20/2024


2 CFR 200 Quick Reference Guide

Uniform Guidance 2 CFR 200

48 CFR 9905 – Cost Accounting Standards (CAS) for Education Institutions


Cost Analysis: (352) 392-5778

Contracts and Grants Accounting: (352) 392-1235

Office of the General Counsel: (352) 392-1358