Acknowledging Employees with Incentive Compensation-Is it allowable?

With the holidays quickly approaching, employees may be rewarded with holiday bonuses if the Company has had a profitable year.  According to FAR 31.205-6(f) government contracting employers may reward employees with incentive compensation (bonuses) when measurable parameters have been predefined.  However, government contractors need to be aware of sensitive accounts where there are considerations beyond just the nature of the costs.  If you want to know how to determine allowable and unallowable incentive compensation, be sure to read our latest thought piece.

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