SHAPING A FISCAL INTERMEDIARY THAT WORKS FOR YOU

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SHAPING A FISCALINTERMEDIARY THAT WORKS FOR YOU

• Presented by
• Michelle Auer, M.S,
• Christopher teKampe

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This presentation is an overview of Fiscal
Agent and Intermediary Service Organizations
About Intermediary Services Types
Responsibilities Examples and Applications Advan
tages and Benefits
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About Fiscal Agent and Intermediary
Services
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(No Transcript)
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Fiscal Agent/Intermediary Supports the person
to be the employer of record. Agency of Choice
Intermediary Is the employer of record whereby
the person is considered the managing employer
of the worker.
Types of Intermediary Organizations
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What it is.
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What it IS Provides accounting
supports to the person who has chosen to be an
employer. Eliminates employer headaches by
performing back-office employer-related financial
reporting. Provides payment for vendor
purchases. Minimizes legal exposure for
funding entities. Ensures compliance with
employer laws.
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What it is not.
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It is NOT Funding source. Deciding force for
workers schedules and duties. Direct
competition to existing provider agencies.
Temporary agency for employees. Provider of
direct services.
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What you should know about them.
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Comparison
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How does a Fiscal Intermediary work?
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General Duties Understand the laws, rules and
conditions that accompany the use of public
resources. Utilize accounting systems that
operate effectively on a large scale as well as
track individual budgets. Meet the time lines
for payments that meet individual needs within
DOL standards. Develop and implement an
effective payroll system that addresses all
related tax obligations. Generate service
management, and statistical information and
reports. Develop systems that are flexible in
meeting the changing circumstances. Provide
needed training and technical assistance to
clients, their representatives, and others.
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Technical Duties Act on behalf of the
person/or family receiving supports and services
for the purpose of payroll reporting. Make
related payments as approved in the persons
budget, authorized by the funding entity.
Generate payroll checks in a timely and
accurate manner and in compliance with all
federal and state regulations pertaining to
domestic service workers. Conduct background
checks as required and maintain results on
file. Process all employment records.
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The responsibilities include Obtain
authorization from the individual/person
receiving supports. Prepare and distribute an
application package of information that is clear
and easy for the individuals hiring their own
staff to understand and follow. Establish and
maintain a record for each employee and process
employee employment application package and
documentation. Utilize an accounting information
system to invoice and receive support
funds. Utilize an accounting and information
system to track and report the support funds
after expenditures to the funding
entity. Generate a detailed support funds
expenditure report to the individual or
representatives twice regularly in a declining
balance format.
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Withhold, file, and deposit FICA, FUTA, and SUTA
taxes in accordance with federal IRS and DOL and
state rules. Generate and distribute IRS
W-2s, Wage and Tax Statements, and related
documentation annually to all support workers who
meet the statutory threshold earnings amounts
during the tax year by January 31st. File and
deposit federal and state income taxes in
accordance with federal IRS and state Department
of Revenue Services rules and regulation. Assur
e that employees are paid hourly rates in
accordance with the federal and state Department
of Labor Fair Labor Standards Act
(FLSA). Process all judgments, garnishments,
tax levies or any related holds on an employees
funds as may be required by local, state or
federal laws.
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Distribute, collect and process all employee time
sheets as summarized on payroll summary sheets
completed by the person or his/her
representative. Prepare employee payroll
checks, twice monthly, sending them to the
client, representative or directly to the
employee according to the Plan. Keep abreast of
all laws and regulations relevant to the
responsibilities it has undertaken with regard to
the required federal and state filings and the
activities related to being a Fiscal
Agent. Establish a customer service mechanism
in order to respond to calls from individuals or
their representative employers and workers
regarding issues such as withholdings and net
payments, lost or late checks, reports and other
documentation. Customer service
representatives are able to communicate
effectively in English and Spanish by voice and
TTY with people who have a variety of
disabilities.
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Have a Disaster Recovery Plan for restoring
software and master files and hardware backup if
management information systems are disabled so
that continuation of payroll and invoice payment
systems remain intact. Regularly file and
accounting auditing to ensure system
accuracy and compliance with general accounting
practices. Be a member in good standing of
NAFAI.
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ACUMEN FISCAL AGENT MODELS
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Brokerages and Counties

• Payroll agent for 8 of 10 brokerages
• Families send bills with County system
• Support 3000 people

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Private Pay

• Enables family members to contribute towards care
• Monthly fee
• People stay at home longer
• Across disabilities

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Family Support, Aging Personal Assistant

• Over 1500 families supported
• Aging waiver, Medicaid waiver, Microboards, brain
  injury waiver, ticket to work, self determination
  grants

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V is for Variety

• 25 (up to 3,000) of allocation can be used for
  goods/equipment
• Supports purchased from agencies/centers

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Full program

• 2600 for each individual
• Help with planning
• Training manuals, books set up
• Supporting approximately 150 families

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Direct billing

• Aging waiver
• We bill Medicaid directly
• Support approximately 100 individuals

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Aging

• Partner with Adfinium
• Support 130 people their employees
• Process payroll
• Cost savings to partner agency

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Employer of Record

• Consumers hire, fire and train
• We carry workmens compensation
• Support 150 people
• New Freedom Waiver Grant

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What about the IRS?
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Fiscal agents are recognized by the IRS as
legitimate employer representatives. The IRS
has issued guidelines on how to authorize fiscal
agents in Rev. Proc. 70-6. Having a fiscal agent
does nothing to the employer of record
relationship. Having a fiscal agent as the
employer of record still allows the person to
direct and manage his/her workers. If done
correctly, the fiscal agent assumes no liability
for employer/employee related issues.
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What about liability?
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Employers are liable for DOL compliance, OSHA
requirements, job-related injury, mistreatment,
abuse, discrimination, harassment, etc. of their
employees - like any employer. Intermediary is
liable for correct calculation and payment of
payroll withholdings and employer-related
taxes. Intermediary also is liable for the fiscal
accountability. Funding sources reduce their
liability as it shifts to the employers and the
intermediary.
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What about RISK?
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THE BIGGEST RISK IS NOT TAKING A RISK. Manage
your own risk. Although there is no single
service delivery model that guarantees a risk
free service, using an intermediary allows the
person to have comparatively greater choice and
control over all aspects of their service needs.
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Employer Advantages
Supports are not limited to traditional or
selected vendors, Different types of supports
can be purchased. You can attract a different
type of work force. Supports can quickly put in
place. Diversity is honored. Portable service.
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Employer Advantages continued
You can Create your own safety net Change
the intensity of the supports you need Combine
funding streams Pool your funding with
others Combine unpaid and paid supports
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Employee Benefits
Employees are able to receive the benefits of
SSI. Employees have an acceptable work record.
Way for employees to receive information that is
helpful to them and up to date. Intermediary may
offer the purchase of benefits insurances,
membership banking, etc. Better pay. Different
rates.
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Employer of Record
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WHO CAN BE THE EMPLOYER OF RECORD?

Person Parent Guardian
Relative Neighbor
Any person/individual receiving the waiver or
program funding (with assistance when
necessary). Teams or other organizations will
need to create a budget that defines what
services are needed and the type of person who
is qualified to deliver the support.
IRS Revenue Procedure 70-6 allows a fiscal agent
(ISO) to manage employment related taxes,
including employee income tax withholding, FICA,
FUTA, and SUTA. Workers compensation, disability
premiums can also be managed as well as the
distribution of checks to venders. In most
cases if the person is over 18 and has not
legally been declared incompetent can be the
employer of record.