Detailed Discussion
Eligible labor costs include actual wages paid plus a percentage of the actual wages that pays for employee benefits. These benefits are referred to as Fringe Benefits. Such benefits can include holiday leave, accrued vacation leave, sick leave, social security matching, Medicare, unemployment insurance, workers’ compensation, retirement-regular, retirement-special risk, health insurance, life and disability insurance, administrative leave, and compensatory leave. The fringe benefit rates for regular and overtime are different. Refer to Labor Costs for an explanation of appropriate regulatory criteria and policy guidelines that must be followed when claiming costs associated with force account labor.
References: Sections 406(a)(2)(C) and 406(f)(5) of the Stafford Act
Office of Management and Budget Circulars A-21, A-87, and A-122
Public Assistance Guide, FEMA 322, pages 45-47