Ala. Admin. Code r. 560-X-60-.06
Current through Register Vol. 43, No. 1, October 31, 2024
Section 560-X-60-.06 - Personnel Costs(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 clinic 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. Deferred compensation plans will be limited to 7 1/2% of allowable annual salaries.(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.(e) Medicaid will not recognize employee stock ownership plans or stock bonus plans. 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 clinic 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 clinic'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 clinic. 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:
Ala. Admin. Code r. 560-X-60-.06
Emergency rule effective October 1, 1993. New Rule: Filed December 7, 1993; effective January 12, 1994.Statutory Authority:Code of Ala. 1975, Plan; Title XIX, Social Security Act, 42 C.F.R. Sections 405.2460 - .2472 and 447.371.