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Employee Payroll Budgeting and Billing Instructions January 2010
How to Budget and Bill OWEB for Employee Actual Payroll Costs
(Project Management and In-House Personnel)
Payroll costs normally appear in the budget categories of project management and in-house personnel.
Payroll costs include only direct costs for:
• Gross wages
• Payroll taxes (Medicare and Social Security)
• Health insurance
• Retirement benefits
• Accrued leave liability
• Workers’ compensation/unemployment insurances.
Payroll costs do not include indirect costs, including, but not limited to:
• Office rent (rent is payable to councils through their Council Support grants and to soil and
water conservation districts through their operational cost arrangements with ODA.)
• Other examples: Federal indirect rates, administration
BILLING INSTRUCTIONS
Unless otherwise required by OWEB, actual payroll expense may be billed on Grantee letterhead or
by providing detailed QuickBooks expense transaction sheets. OWEB reserves the right to request
detailed payroll records.
Effective January 2010 – grantee letterhead must show:
1. Dates for which the expenses were incurred;
2. Hourly rates;
3. The number of hours and amounts must be shown by budget category and
names of individuals;
4. The letterhead must be signed and dated.
QuickBooks expense tracking sheets must show:
1. Dates;
2. Position description by budget category and name of person being paid;
3. Amounts; and
4. Must be signed by authorized Grantee or Fiscal Agent.
Expenditures billed in either manner are subject to a review. Actual payroll records
must be kept on record by the grantee or fiscal agent.
OWEB FISCAL REVIEW
If Payroll hourly rates appear to be unusually high, Fiscal staff may request a review of those rates.
Grantees/Fiscal agents will then need to provide a breakdown of their actual hourly rates, formatted
similarly to the sample calculation table on page 2 of these instructions. OWEB will reimburse
only actual payroll costs. Hourly rates shown in application budgets may be subject to OWEB
Fiscal review at the time payroll expenses are charged to the grant. If you have questions or
concerns, please contact your OWEB regional program representative.