Policy and Procedure Manual
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Home > FMS Policies and Procedures CA > Establishment of Consumers as Employers of Workers > Employer Start Up Packages

Employer Start Up Packages

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Policy: 

<<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 policy for how and when Employer Start Up Packages are produced and distributed.  Insert any program specific policies about production and distribution of Start Up packages.>>
 
Employer Start Up packages are completed by consumers or consumers' representatives
 
 
 The F/EA checks for updated forms on a monthly basis. As new versions of forms are identified, the Start Up Package is updated with the new version.
 
Upon request, F/EA submits a copy of the Employer Start Up Package to Program Administrator, participant direction program Manager.
Procedure: 

<<Insert Process for how Employer Start-Up Packages are Distributed to Consumer Employers>>

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 distribute Consumer Orientation Packages are:
  1. A control document is used to track checking for updated forms at least monthly.
  2. Staff verifies whether there are new forms in use at relevant agency websites prior to placing a printing order for new forms (See Stay Up to Date with Forms, Rules and Regulations)
  3. <<Insert other Internal Controls related to pre-populating and distributing Employer Start-Up Packages to Consumers>>

Consumer Agreement(s)

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Policy: 

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.

The F/EA Consumer Agreement is attached here.

Form SS-4, Application for Employer Identification Number

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Policy: 

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.

IRS Form 2678, Employer Appointment of Agent

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Policy: 

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.

IRS Form 8821, Tax Information and Authorization

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Policy: 

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.

State Power of Attorney for State Income Tax

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Policy: 

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.

State Power of Attorney for State Unemployment Tax

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Policy: 

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.