How to Record OCONUS Hazard Pay
Records the differential pay provided to employees working in designated hazardous OCONUS locations.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Labor - Hazard Pay Differential | Expense | 22,500.00 | - |
| Accrued Payroll | Liability | - | 22,500.00 |
💡 Accountant's Note
Hazard pay is an allowable personnel cost under FAR 31.205-6, provided it follows Department of State Standardized Regulations (DSSR) rates and is applied consistently.
Practitioner & Systems Framework
💻 ERP Architecture
Separate labor category or pay element to ensure distinct visibility from base labor.
⚠️ Audit Flags
Hazard pay rates exceeding DSSR maximums or inconsistent application across contracts.
📄 Required Documentation
Employee timesheets, DSSR rate tables for the period, and employment offer letters.
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