Other benefits, including cost allocation
Page posted: 2/12/21
This section of the cost report collects information about the costs of benefits offered by the organization that cannot be tied directly to individual employees. Organizations most often pay these types of benefits as an aggregate amount or single line item. This can include:
This type of cost is not a common cost for all provider organizations. Unless the cost report preparer is aware of a cost like self-funded insurance or an employee assistance program, the organization most likely does not have these costs.
If the organization does not have these type of costs, skip this section.
This section of the cost report also asks the cost report preparer to allocate the added benefit expenses to direct care and administration cost categories, if applicable. The allocation should follow the principles in the general guidance about cost allocation methodologies section.
Category | Instructions |
Other employee benefit costs | Provide the cost of other employee benefits and benefit programs not already reported on the administrative and program support benefits – employees section or direct care and supervisor benefits – employees section. Do not include costs for benefits on this section if the organization can attribute the benefits to individual employees, such as a per-person premium paid to an insurance company. Instead, report those benefits on the administrative and program support benefits – employees section and direct care and supervisor benefits – employees section. Example: An organization self-funds its workers compensation insurance. The organization calculates the cost of this self-funding by combining both the catastrophic insurance coverage it purchases and all claims paid in a year. The organization does not allocate this amount by employee. Instead, the organization allocates it as a single line item in the administrative costs of the business. |
Allocations | For each reported benefit cost, provide the percentage attributed to each cost category, based on the allocation methodology determined to be appropriate for this section. |
Describe “other employee benefit costs” | Describe the “other employee benefits” the organization provides. Include enough detail so a person unfamiliar with the organization can understand these benefits. |
Cost allocation methodology | Describe the methodology the organization used to allocate costs for this section. Include enough detail so a person unfamiliar with the organization can understand the allocation procedure used. For information about how to allocate costs, refer to the general guidance about cost allocation methodologies section. |
Next step
Next, review client programming and support costs.
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