Is it acceptable for an invoice for services to include salaries and benefits as cost elements?
In a contract situation, the federal Government pays for the costs of professional services, not for salaries and benefits. The contractor is responsible for including these costs in the price charged the government for these professional services, regardless of the basis of payment, i.e. whether the price is based on fixed time rates (e.g. per diem rates) or on the basis of deliverables. Paying any invoice that specifies salaries and benefits as one of the cost elements could create the appearance of an employer-employee relationship.
