|Name||Understanding Account Statements and Pay Stubs|
|Description||an Acumen Final video|
Welcome and congratulations on becoming an employer of record! We are pleased to be your Fiscal Agent and we look forward to working with you and your employees! This video training series presents general information to support and assist you in your role as an employer. NOTE: Always check with your Program to verify details of this information and specifics of the law as they apply to you. If you have questions, please contact us. Terms to know. Important NOTE: Self-directed services means that Participants, or their representatives if applicable, have decision-making authority over certain services and take direct responsibility to manage their services with the assistance of a system of available supports. “You” in the following descriptions is inclusive and refers to the Participant and/or designated representatives. Acumen – The Fiscal Agent that helps you manage employer-related financial and other responsibilities pertaining to your self-directed services. Authorization – Documentation that specifies approved services, service codes, and number of units, hours, or dollars for delivery of goods and services included in the Plan of Care. Case Manager – Person assigned by the Program to work with you and facilitate details of your self-directed program (a Case Manager may be known by other titles, depending on Program terminology). Employee – Person who works for you and provides services to the Participant. Employer – Person who hires and supervises staff to provide services to the Participant (the Employer may also be the Participant). Fiscal Agent – (Acumen) provides payroll processing, tax services, payments and other administrative functions authorized by the Program. Participant – Person receiving services authorized by the Program (the Participant may also be the Employer). Payment Services – Payroll Services (employee-related payments and processing); Vendor Services (vendor-related payments and processing). Plan of Care – Plan you create with your Case Manager and team to determine Participant needs and how to meet them, based on the Participant’s preferences, choices, and abilities. It assists the Participant in directing their services. It includes the number, type and duration of approved goods and services. Program Administrator – Entity that manages the Program and/or waiver funding. Welcome to the module: Understanding Account Statements and Pay Stubs. This module explains common terms and abbreviations used in the Account Statements and Pay Stubs. In addition, it provides a guide to reading these documents. It will help you: read and understand your Account Statement; locate your account balance for the Activity Period end date of the statement; track your spending; know the difference between employer and employee tax calculations and deductions, such as FUTA and SUTA; Workers’ Compensation; FICA is the Federal Insurance Contributions Act that mandates payment of these two taxes on employee wages - Social Security, Medicare; check federal, state, and local (if applicable) income tax withholding; recap employee Pay Stub information. Let’s begin by reviewing Acumen’s responsibilities. As your Fiscal Agent, Acumen will: comply with all employer and employee tax withholding and reporting requirements on your behalf; process and track employee payments correctly according to Program rules (as well as payments for vendor goods and services, if applicable) that are approved in the Authorization; process and report payments on your behalf for employer and employee taxes to federal, state and local (if applicable) taxing authorities; process and send Form W2s to employees at year-end, and Form 1099s to vendors and independent contractors; provide reports to you and your Program regarding your spending; track your employee training and certifications, if applicable. Acumen provides a summary of the processing, tracking and reporting we do on your behalf in the form of an Account Statement that we send to you, the employer. Acumen distributes these regularly on a schedule agreed upon between Acumen and the Program. Employer taxes and burdens: all employers in the U.S. are required to pay certain taxes and burdens. “Burden” means any required payment, in addition to taxes, no matter if they are a large business like McDonald’s or a self-directed employer like you. These employer taxes and burdens include: Federal Unemployment (FUTA); State Unemployment (SUTA); Workers’ Compensation; Federal Insurance Contributions Act (FICA) - Social Security, Medicare; Federal, State, and Local (if applicable) income tax withholding. Federal and State Unemployment (FUTA and SUTA) taxes, as well as Workers’ Compensation are paid out of your Authorization. They are calculated as a percentage of the wages paid. Acumen totals taxes and burdens as we process your employee’s payroll, and then sends payment to the appropriate tax authorities and Workers’ Compensation insurance company, as required. These employer-related costs are deducted from your Authorization, along with the employee wages. Let’s review some abbreviations and terms that refer to these taxing authorities, companies, and agencies that you are required to pay. First, there are two components to unemployment tax. These are federal and state unemployment taxes. All employers are required to pay these. They are commonly known by these terms. FUTA stands for the Federal Unemployment Tax Act. FUTA is a federal tax paid by you as the employer. It covers the costs of administering Unemployment Insurance and Job Service programs in all states. In addition, FUTA pays one-half of the cost of extended unemployment benefits during periods of high unemployment and provides for maintenance of a fund from which states may borrow to pay benefits, if necessary. SUTA refers to State Unemployment Tax Authority. SUTA is also a tax paid by you as the employer. Revenue from this tax is added to a fund that can be used by a qualifying employee in the event he or she is unemployed. The tax is determined by taking a percentage of a worker’s salary. This payment is capped at a certain annual pay level. Workers’ Compensation is a form of insurance required from most employers. It provides compensation and medical benefits for workers who are injured on the job. NOTE: Check with your Program or Acumen to determine if Workers’ Compensation is a requirement. If coverage is mandatory, your employees will automatically have Workers’ Compensation coverage. Cost of this coverage is included in the employer taxes and burden that are paid out of your Authorization. Workers’ Compensation covers all your employees while they are clocked in and working for you, for the duration of their employment with you. Costs associated with State Unemployment and Workers’ Compensation are likely to change each calendar year. If/when this happens, Acumen will notify you of any change and how it impacts your employee pay rates, as well as what action you must take, if any. FICA is the Federal Insurance Contributions Act. This is the law that requires withholding of two separate taxes from earned wages which are taxed at a flat percentage rate of wages. FICA is an employment tax on both employees and employers used to fund federal programs that provide benefits for retirees, individuals with disabilities, and children of deceased workers. These taxes fund these programs: Social Security, a federal insurance program that provides benefits to retired people, survivors, and those who are unemployed or with disabilities; Medicare, the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with end-stage renal disease. The different parts of Medicare (A, B, and C) help cover specific services, starting with hospital coverage. Social Security and Medicare are paid in part by your employee(s) and in part by you as the employer. NOTE: Your part is included in the Show Me the Money calculation, so the tax is being deducted from your Authorization as hours are paid to your employee(s). The remaining portion of the Social Security and Medicare contributions are taken out of your employee’s paychecks based on a percentage of gross wages paid. Federal, State and Local (if applicable) income tax withholding - employers are required to withhold federal income tax, Social Security tax, Medicare tax, and state and local taxes from the earnings of their employees. If your Program allows and you use vendor services, it is important for you to understand that vendors and independent contractors are responsible for paying their own taxes associated with their earnings. They are NOT employees. We just covered important terms you will see in your Account Statements. Now let’s discuss how to read Account Statements. Here is a description of the information you will see on Acumen’s Account Statements. NOTE: If you want to follow along with more detail and a printed copy of the Account Statement Example document, please visit your state and program-specific website by accessing acumenfiscalagent.com. For state and program-specific information, from the home page, navigate to your state, locate your program, select from available topics: forms, resources, FAQs, contacts, etc. Statement sample preview: this is a preview of what the statement samples look like if you print them from our website. Let’s review important sections. Account Statements sections: Personal Information includes employer name and address, the Participant’s ID number (the same number is used when entering time for services provided to the Participant), the Program and the activity period. The Participant ID number is used in the Account Statement instead of the Participant’s name to meet HIPAA (the Health Insurance Portability and Accountability Act) guidelines. Account Information that includes: Total Allotments, Period Utilization, and Total Utilization, and see the total remaining Balance as of the Activity Period end date. Employee Information lists the names of all your employees, even those who didn’t work during the activity period covered, pay type – that is, how they were paid, their status, their employee number and their Good To Go date. Payroll Check Information gives details of each check issued for each employee based on the time worked that was submitted. Each employee payroll check issued in the activity period is listed in a separate Payroll Check Information section. The breakdown includes check number, date the check was issued, net earnings (after deductions) and gross earnings (before deductions), and lists the deductions we covered earlier and the amount of each. There is also a complete list of services the employee provided that itemizes time worked submitted by service code, date, actual time worked, rate for each service, and the hours worked. . Vendor Check Information shows the details of each check issued for each vendor or independent contractor. It is based on either billing information or reimbursement submitted. Each vendor check is listed separately. Training and Certification Information shows important expiration and renewal dates that may apply in your Program including vehicle insurance and registration expiration dates. Next, let’s talk about how to read an employee pay stub. Actual Pay Stubs may look slightly different, but the important information is the same. Each employee payroll check issued comes with a section, referred to as a Pay Stub that includes check details and itemizes the net earnings (after deductions) and gross earnings (before deductions), and lists the deductions we covered earlier and the amount of each. Here are terms you will see. Gross Earnings – this is the total amount an employee earns before taxes are deducted. YTD (Year-to-Date) refers to total pay for the calendar year to date, including current pay. Net Pay – the employee’s take-home pay, after taxes have been deducted. Federal Withholding – what is withheld from the employee’s gross wages for federal withholding. The amount is determined by tax tables created by the IRS and is based on how the employee fills out Tax Form W4; State Withholding - what is withheld from the employee’s gross wages for state withholding. The amount is based on your state’s tax withholding and how the employee fills out the state-specific tax form. NOTE: Local tax withholding, if applicable. FICA is the Federal Insurance Contributions Act which taxes employee wages to fund two programs, Social Security and Medicare, which we described earlier. Social Security tax is a federal insurance program that provides benefits to retired people, survivors, and those who are unemployed or with disabilities. Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with end-stage renal disease. The different parts of Medicare (A, B, and C) help cover specific services. Contact Acumen if you have questions about an employee’s Pay Stub. You may use your program’s assigned number or Acumen’s toll free general number. We’ve covered important financial information you will review carefully throughout the year. Another employer responsibility that Acumen will handle on your behalf at year-end is processing and sending out W2s to your employees and 1099s to vendors and independent contractors, and anyone who was reimbursed for out-of-pocket expenses incurred on behalf of the Participant. These are end-of-year tax reports: Employees – each employee will receive Tax Form W2. Vendors and independent contractors will receive Tax Form 1099. Important NOTE: You will also receive a 1099 if you received reimbursement for any out-of-pocket expenses incurred on behalf of the Participant, for example: mileage, transportation, etc. (See the Employer Training Module Vendor Services and Payments or call Acumen Customer Service if you have questions.) These tax documents are a record of money that was paid to your employees, as well as to vendors and independent contractors (if applicable) throughout the year. These reports are required for employees and vendors and any non-employee receiving payment using Program funds when they prepare and submit their personal income taxes. These year-end reports are usually sent out the last week in January each year, but no later than January 31st. Let’s summarize module highlights. Acumen provides a regular summary of the processing, tracking and reporting we do on your behalf in the form of an Account Statement. Account Statements include both employee and Participant account information. They help you track your spending and current balance for both the activity period and the year to date when you review the Account Information section; view payroll check information for each employee for the activity period; check each employee’s rate of pay for each service code; review an itemized list of service dates/shifts paid to each employee; track employee and vendor training and certifications, if these apply. A Pay Stub is a section of each employee payroll check that includes check details and itemizes the net earnings (after deductions) and gross earnings (before deductions). It lists the deductions and the amount of each. Acumen provides end-of-year tax reports the last week in January for the previous year, as follows. Employees receive W2s. Vendors, independent contractors and any approved non-employee reimbursed for out-of-pocket expenses incurred on behalf of the Participant receive 1099s. Congratulations! And thank you for completing the Acumen Employer Training module, Understanding Account Statements and Pay Stubs. We hope you have a better understanding of the resources and tools that will help you track your spending and monitor Participant and employee account information. Welcome to Self-Direction - welcome to Acumen!
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