In the case where a managing director is charging her/his company for the work s/he does with different hourly wages for different tasks. Which hourly wage should s/he use for the eTEN project?
The accounts must identify the costs. If the managing director is being paid from the profits these costs are ineligible. If the managing director is being paid as a sub-contractor, the rules of sub-contracting apply. If the managing director is being paid a salary or as an in-house consultant, the rules relating to personnel costs apply. These latter rules do not foresee different salary rates per task. Q: In the case where a managing director is not employed by her/his company – is s/he allowed to charge costs to the project. A: Where a managing director is not directly employed by her/his company her/his costs are not eligible to the project. If s/he is remunerated by sharing the profits these costs are not eligible. If a participant wishes its managing director costs to qualify as eligible then s/he must be engaged by the company in a contractual capacity.
Related Questions
- In the case where a managing director is charging her/his company for the work s/he does with different hourly wages for different tasks. Which hourly wage should s/he use for the eTEN project?
- Is a Managing Partner of a partnership business or a Managing Director of a company an employee within the meaning of Section 2(9) of the Act?
- How should a managing director of an SME calculate his own hourly wages?
