Current through Register Vol. 43, No. 02, November 27, 2024
(1) Orientation
and On-The-Job Training. The costs of orientation and on-the-job training are
recognized as normal operating costs and are allowable. Ordinarily, such
training would be imparted within the center setting. If, however, the training
requires outside instructions, costs of such training are allowable, if
reasonable.
(2) Fringe Benefits.
Fringe benefits are amounts paid to, or on behalf of, an employee, in addition
to direct salary or wages, and from which the employee or his beneficiary
derives a personal benefit before or after the employee's retirement or
death.
(3) The costs of fringe
benefits must be reasonable and related to patient care Medicaid recognizes the
following fringe benefits:
(a) Facility
contributions to certain deferred compensation plans, if the plan does not
favor top management.
(b) Facility
contributions to certain pension plans, if the plan does not favor top
management.
(c) Paid vacation or
leave, paid holidays, paid sick leave, voting leave, court or jury duty leave,
all of which generally are included in employee earnings.
(d) Cost of health and life insurance
premiums paid or incurred by the facility if the benefits of the policy inure
to the employee or his beneficiary, if the plan does not favor top management.
Other items not enumerated above may represent fringe benefits. However, before
any other item is treated as a fringe benefit, refer it to the Medicaid Agency
for approval.
(4) Sick
Leave. The reasonable cost of sick leave taken by an employee of a center is
recognized as a fringe benefit and included in allowable costs only when the
facility makes payment for the sick leave. Payment in lieu of sick leave taken
is not recognized by the program as payment for sick leave but is recognized as
additional compensation. To be included in allowable costs, this payment in
lieu of sick leave taken, along with other forms of compensation paid to an
employee, must be reasonable.
(5)
Vacation Costs. A vacation benefit is a right granted by an employer to an
employee
(a) to be absent from his job for a
stipulated period of time without loss of pay or
(b) to be paid an additional salary in lieu
of taking the vacation. Vacation costs must meet all of the following
conditions to be included in allowable costs.
(a) These costs must be included in the cost
reporting period in which they are earned by the employee and must be computed
from actual payroll records as related to each employee.
(b) Where the center's vacation policy is
consistent among all employees, the vacation must be taken or, if the employee
elects to be paid in lieu of taking a vacation, the payment must be made within
the period consistent with the vacation policy established by the center. Where
the policy is not consistent among all employees, the vacation must be taken or
payment in lieu of vacation must be made within two years after the close of
the cost reporting period in which the vacation is accrued. If payment is not
made within the required period of time or in those instances where the
vacation benefits, accrued and included in allowable costs, are forfeited by
the employee for cause, the current year cost report must be
adjusted.
(c) Amounts allowed for
vacation benefits must be reasonable in themselves and, together with other
compensation, result in reasonable compensation for services
rendered.
(d) Employer payroll
taxes applicable to vacation, such as FICA, must not be accrued, but treated as
a cost in the period when the vacation costs are paid.
Author:
Statutory Authority: State Plan; Title XIX,
Social Security Act, 42 C.F.R. §405, 2401 - .2429.