State Procurement Office

DESCRIPTION	ALLOWABLE/UNALLOWABLE	REMARKS
Compensation for personal services currently paid or accrued
• Salaries and Wages	Allowable to the extent that the range is reasonable for the services rendered	Required Documentation: Schedule detailing total annual salary for each position, computation of each position’s FTE and service site. Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to the contract(s). The reports must reflect an after-the-fact determination of the total actual activity of each employee and signed by the individual employee, or by a responsible supervisory official having firsthand knowledge of the activities performed by the employee, that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the periods covered by the reports. (Note: The State is requests that adequate records supporting the allocation of salaries be maintained and not necessarily detailed timesheets, e.g., accounting for each quarter hour for each employee.) Personnel policies and procedures governing vacation leave, sick leave, and overtime pay.
• Overtime • Salary Increases	Allowable with prior approval	Same as above
• Vacation Leave • Sick Leave	Unallowable payment for leave in lieu of leave not taken	Unallowable
• Bonuses • Severance Pay • Excessive Compensation • Accrued leave payout for terminating employees	Unallowable	Unallowable
Payroll Taxes and Assessments All Federal and State requirements
• Employer’s portion of FICA, workers compensation, unemployment insurance and temporary disability insurance.	Allowable	Required Documentation: Schedule detailing applicable percentages of statutory ceilings for each payroll tax, insurance and other costs.
• Fines and penalties due to late filing and/or payment	Unallowable	Unallowable
Fringe Benefits: Employers’ portion of health care and retirement benefits
• Health care insurance	Allowable	Required Documentation: Each benefit should be clearly detailed in the personnel policies and procedures.
• Retirement plans	Allowable with prior approval	Required Documentation: Each benefit should be clearly detailed in the personnel policies and procedures.
• All costs considered as perquisites (e.g., non-wage compensations provided to employees in addition to their normal wages or salaries)	Unallowable	Unallowable