Salaries can only be requested for university personnel (or personnel you intend to hire as a university employee upon award). Salaries can be requested for faculty, classified staff, letter of appointment faculty, post doctoral researchers, graduate assistants hourly/student workers, etc. Salaries cannot be requested for consultants, faculty at other institutions, research subjects, etc. There are other mechanisms for remuneration for these cost categories. Also, university employees must be paid through their salary lines. This means university employees cannot be paid through the “independent contractor” process.
NSF policy no longer permits cost sharing. A PI cannot put time on a grant budget for $0 salary and call it institutional support (cost share) on the budget justification. It is recommended that this type of institutional support be listed under the "Other" section of the Facilities and Resource page. While NIH has not formalized this same policy, things of this nature become subject to federal audit. Therefore, caution should be exercised in the cost share budget portion.
Fringe expenses always accompany salary expenses. These expenses cover the costs of health insurance, life insurance, worker’s compensation, etc. Fringe costs should not be confused with facilities and administrative costs (aka “F&A”, “indirect costs, or “overhead”). These are two distinct, genuine costs associated with sponsored projects and both should be included in the proposal.
Fringe rates correspond to employment category and contract type. The current rates for all employment categories can be found on the University's Planning, Budget and Analysis website.