File Registration and Authorization Forms with Tax Agencies

Submitted by admin on Tue, 05/04/2021 - 15:24
Policy: 

F/EA obtains applicable employer account numbers with the Internal Revenue Service (IRS) and State Department of Revenue (DOR) on behalf of each active participant served by F/EA in the participant direction program. F/EA registers consumers with the State Department of Labor (DOL) for State Unemployment Insurance, but only after the participant has been determined liable for State Unemployment Insurance (See Register Consumer with State Department of Labor (Unemployment)).

As employers of workers in the participant direction program, consumers must be established with applicable tax agencies as employers for the purposes of withholding, depositing and filing applicable employer taxes and returns. 
 
Consumers also delegate responsibility for withholding, depositing and filing applicable employer taxes and returns to the F/EA. This document outlines the policy, procedures and internal controls used by F/EA to file these registration and authorization forms with applicable tax agencies.
 
Below, each step is outlined. The Policy associated with each step is stated beneath the step header.
Procedure: 

Create Consumer Folder

After completing the procedure in Collect and Process F/EA Start Up Packages, a folder for participant F/EA Start-Up Package paperwork is created. This process is completed by a <<Staff Title>>. New folders are created daily as packets pass quality check and all other procedures in Collect and Process F/EA Start Up Packages.
 
  1. <<Staff Title>> or assigned staff selects a blank file folder from the F/EA supply
  2. <<Staff Title>> writes participant last name, first name and <<MMIS ID>> on file folder tab
  3. Before filing participant’s F/EA Start-Up package
  1. <<Staff Title>> places all F/EA Start-Up Package forms in folder.
    • This folder will be stored in alphabetical order by participant last name in the participant file cabinets after all paperwork has been filed
    •  These file cabinets are locked for HIPAA protection (See HIPAA Policy)
  1. The folder is placed in the box labeled “Paperwork” in the Customer Service Unit

 

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

The methods of internal control utilized by F/EA to collect and process F/EA Start-Up Packages are:
1.            All systems are password protected
  •  Only staff authorized to perform certain duties are provided with password access to systems
2.            The New Weekly Consumer List is independently verified each week by the <<Staff Title>> to ensure paperwork is being processed timely
  • <<Staff Title>> initials and dates printed weekly participant list and stores in Payroll Department.
3.            An e-mail address is provided to State Department of Revenue (DOR) or equivalent during registration
  • If DOR cannot validate the registration, an e-mail is automatically sent to F/EA for resolution
4.            The Payroll Department submits a test to DOR monthly to verify that all employers liable for state withholding taxes are appropriately registered with DOR and that the reporting agent has accurate account numbers for consumers
5.            The Payroll Department provides an independent internal quality check of State Income Tax Account Number Registration Form when the employer is registered with DOR.
6.            The Payroll Department verifies that the reporting agent is correctly reporting an employer’s first payroll date by running a report for each employer who the reporting agent reports as liable for state withholding taxes
  • This report verifies the employer’s first payroll date