What Is a Salary Cap Schedule?

A salary cap schedule consists of a name, currency, type, and one or more annual salary cap amounts with effective dates.

Salary cap schedules are assigned to posting grant activities that are subject to salary caps. When a salary cap is reached for an employee and activity (grant), the system issues a warning on the labor distribution templates and reports and the system can automatically recalculate the distribution percentages on the labor distribution template, cap the employee's salary percentage for the grant at the allowed percentage, and create an overage distribution line on the template to hold the overage amount.

When you define a posting activity, you indicate whether to use the salary cap amount in effect on the activity's start date or whether to use the newest, active salary cap amount in the salary cap schedule.