<<Before making changes to this chapter, identify who is authorized to operate as an employer in the program. Some programs only allow consumers to be employers while others allow the participant to authorize another person (often called a representative) to operate as the employer>> See General Policies for Consumer Employers
The Employer Start Up Package includes important introductory forms for the participant and all required forms for the participant or his/her representative to be established with tax agencies as an employer. This package also includes forms for the participant or representative to designate tax filing and payment responsibilities for the participant's employer accounts to F/EA.
A new participant receives the Start Up package from <<the participant's Counselor only after the Counselor has received a referral from Program Administrator.>> <<This package is provided to the participant or representative by the Counselor at the intake and orientation meeting.>> The Counselor goes over each form with the participant, helping the participant to understand and complete them.
<<Insert Process for how Employer Start-Up Packages are Distributed to Consumer Employers>>
The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.
F/EA includes an agreement between the F/EA and the participant in every Employer Start-up Package. The intent of the Consumer Agreement is to ensure that both the participant and F/EA clearly understand each other's roles in the participant direction program and both agree to their roles. This form is included as a standard part of every employer packet produced.
F/EA includes IRS Form SS-4, Application for Employer Identification Number, in every employer start up package.
On line 1 of Form SS-4, after listing the employer's name, "HCSR" must be written. HCSR is the IRS' term for participant employers. It stands for Home Care Service Recipient. Line 1 of Form SS-4 should appear like the below:
"John Doe, HHCSR"
Otherwise, Form SS-4 should be completed per the attached example.
F/EA includes IRS Form 2678, Employer Appointment of Agent, in every Employer start up package. F/EA completes Form 2678 per attached example. This form is included as a standard part of every employer packet produced.
F/EA includes IRS Form 8821,Tax Information and Authorization, in every employer start up package. Form 8821 is completed per attached example. This form is included as a standard part of every employer packet produced.
Note that an executed Form 8821 is no longer required by the IRS for Fiscal/Employer Agent services, but it is a best practice to obtain executed Forms 8821 and file them with the IRS.
F/EA should update this sub-chapter per State requirements. Verify with your state if a Power of Attorney or similar form is needed for the F/EA to operate on behalf of an employer to file and pay withheld state income taxes. If so, update this sub-chapter to reflect the appropriate policy, procedure and internal controls.
F/EA should update this sub-chapter per State requirements. Verify with your state if a Power of Attorney or similar form is needed for the F/EA to operate on behalf of an employer to file and pay state unemployment taxes. If so, update this sub-chapter to reflect the appropriate policy, procedure and internal controls.