New guy

The owner records direct & indirect charges, vacation, holiday, sick, etc. consistent with time-keeping practices for all our employees. I understand it would be preferable for him to be salaried, but given the circumstances I want to ensure we are appropriately allocating his cost in our ICS in accordance with the FAR. I don’t see how our ICS would accurately reflect all allowable costs if it did not include the labor for contracts he directly supports and his indirect activities. Thank you again for your input.

Thank you for your reply. The owner works on all contracts (cost-type and T&M) and does keep a weekly time card. His cost (recurring monthly draw) is allocated based on the hours spent on each contract consistent with how salaried employees are treated. And similar to salaried employees, we have included his year-end bonus in Overhead. I haven't been able to find much guidance regarding single-owner LLCs filing an ICS, thus the reason for my post.

I work for an SBA government contractor which is a Single-Owner, LLC and the Owner takes a monthly draw and year-end bonus. We have 15 salaried employees and the Owner works as a SME on all our contracts. I realize that ordinarily owner’s draw & bonus would not count as an expense but rather a reduction of owner’s equity. My questions are.…In our Incurred Cost Submission, can we include the Owner’s draw and bonus in our Direct Labor base for purposes of calculating indirect rates? Also, can we include the Owner’s bonus in Overhead? We include salaried employee’s bonuses in either Overhead or G&A depending on their function.