DCAA Guidance on Allowability of Supplemental Reservist Payments
As a result of recent events, many members of the National Guard and Armed Forces Reserves have been or will be called up for military duty. Many firms choose to continue many fringe benefits (e.g. health insurance) and pay employees called up the difference between what their civilian and military salaries are to help mitigate the hardships of military duty. The guidance calls attention to an October 5, 2001 memorandum issued by the Under Secretary of Defense for Acquisition, Technology and Logistics that provides these types of supplemental benefits for extended military leave are to be considered allowable costs under FAR 31.205-6, Compensation for personal services (MRD 01-PAC-075(R).
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