SHAPING A FISCAL INTERMEDIARY AGENT THAT WORKS FOR YOU

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SHAPING A FISCAL INTERMEDIARY/AGENT THAT WORKS
FOR YOU

• Presented by
• Chris teKampe
• Randy Auer

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Fiscal Agent and Fiscal Intermediary are
terms used to label financial entities tied to
the Self-Determination movement for the past
several years. CMS is moving toward the term
Fiscal Employer Agent, which we will be using
throughout this presentation in reference to
both agents and intermediaries.
Terms of Intermediary Organizations
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This presentation is an overview of Fiscal
Employer Agent Organizations About
Intermediary Services Types Responsibilities E
xamples and Applications Advantages and
Benefits
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About Fiscal Employer Agent Services
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Fiscal Employer Agent 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 a Fiscal Employer Agent 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 a Fiscal Employer Agent 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 Fiscal
Employer Agents.
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Intermediary where Intermediary is the the
person is the employer of record employer of
record
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How does a Fiscal Employer Agent 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 employer taxes in
accordance with federal IRS and DOL and state
rules. Generate and distribute IRS W-2s
and/or 1099s, 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. Assure 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 EMPLOYER AGENT MODELS
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Brokerages and Counties

• Payroll agent for 8 of 10 brokerages
• Families send bills with County system
• Support over 1500 individuals ongoing
• Support 4500 individuals in transition

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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 1200 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 up to 150 families

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Direct billing

• Aging waiver
• We bill Medicaid directly
• Support approximately 130 individuals

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Aging

• Partner with Alpha Group
• 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
• Program cap at 2500 people
• New Freedom Waiver Grant

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What about the IRS?
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Fiscal Employer Agents are recognized by the IRS
as legitimate employer representatives. The
IRS has issued guidelines on how to authorize
fiscal employer agents in Rev. Proc.
70-6. Having a fiscal employer agent does
nothing to the employer of record
relationship. Having a fiscal employer agent as
the employer of record still allows the person to
direct and manage his/her workers. If done
correctly, the fiscal employer 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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Employer Advantages
Supports can come from traditional as well as
non-traditional 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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Whats in it for me, the local provider?
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Provider Benefits
Families get real choices in service development
and delivery. Families provide network of support
unrealized in traditional settings. Families have
responsibility for safety of supports. Families
have responsibility for accountability of
dollars. Provides new options for the tough to
serve individual. Attracts non traditional
people into workforce pool.
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What Weve Seen
Waiting lists for community based services have
been addressed. Providers have developed menus
of services to better meet customer
needs. Staffing crossover between traditional and
self-directed services. Customer satisfaction
index in the high 90s. Key to success
FLEXIBILITY
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• For information on Acumen
• Fiscal Agent Consulting or Fiscal Intermediary
  Workshops
• www.acumenfiscalagent.com
• 1-888-221-7104
• TTY 1-888-835-0010