Section 405IAC1-14.6-17. Allowable costs; wages; costs of employment; record keeping; owner or related party compensation

   (a) Reasonable compensation of individuals employed by a provider is an allowable cost, provided such employees are engaged in patient care-related functions and that compensation amounts are reasonable and allowable under this section and section 18 of this rule.

  (b) The provider shall report on the forms prescribed by the office, all patient-related staff costs and hours incurred to perform the function for which the provider was certified. Both total compensation and total hours worked shall be reported for all employees.

  (c) Payroll records shall be maintained by the provider to substantiate the staffing costs reported to the office. The records shall indicate each employee's classification, hours worked, rate of pay, and the department or functional area to which the employee was assigned and actually worked. If an employee performs duties in more than one (1) department or functional area, the payroll records shall indicate the time allocations to the various assignments.

  (d) When an owner or related party work assignment is at or below a department head level, the hours and compensation shall be included in the staffing hours reported using the forms prescribed by the office. Such hours and compensation must be reported separately and so identified. Compensation paid to owners or related parties for performing such duties shall be allowed if the compensation paid to owner/related parties does not exceed the price paid in the open market to obtain such services by nonowners or nonrelated parties. Such compensation to owner/related parties is not subject to the limitation found in section 18 of this rule. (Office of the Secretary of Family and Social Services; 405 IAC 1-14.6-17; filed Aug 12, 1998, 2:27 p.m.: 22 IR 79, eff Oct 1, 1998; filed Mar 2, 1999, 4:42 p.m.: 22 IR 2246; readopted filed Jun 27, 2001, 9:40 a.m.: 24 IR 3822; readopted filed Sep 19, 2007, 12:16 p.m.: 20071010-IR-405070311RFA; readopted filed Oct 28, 2013, 3:18 p.m.: 20131127-IR-405130241RFA)