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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 53 Pa.B. 7346 (November 25, 2023).

55 Pa. Code § 6211.112. Profit organizations.

§ 6211.112. Profit organizations.

 (a)  If a proprietor of an organization organized for profit performs services as a salaried employe of the organization, a reasonable allowance of compensation for these services is an allowable cost if both of the following apply:

   (1)  The services are actually performed in a necessary function.

   (2)  The person is qualified to perform these services.

 (b)  A reasonable allowance for compensation means that the compensation allowance be such an amount as would ordinarily be paid for comparable services by comparable facilities.

 (c)  A necessary function means that, had the owner not rendered the services, the facility would have had to employ another person to perform the services. A necessary function also means that the function be pertinent to the operation and sound conduct of the facility.

 (d)  Compensation to voting members of an organization organized for profit is subject to the requirements for directors of nonprofit organizations in §  6211.111 (relating to nonprofit organizations) in order for the cost thereof to be included as an allowable expense included in the computation of per diems.

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