Fiscal Intermediary / Employer Agent
Fiscal Intermediary Services is defined as services that assist individuals and their families to meet the individuals goals and dreams outlined in the Person Center Plan.
The individuals and their families direct their own care by hiring staff directly rather than through an agency.
The Internal Revenue Service (IRS) regulations allow the fiscal to act as an employer agent under section 3504 of the IRS code.
The fiscal intermediary’s role as an employer agent allows the individual to direct his or her own care without having to manage the payroll process.
The Families and individuals who utilize the program will gain much more control over the services they receive by hiring, training, supervising and when necessary terminating their own staff.
Roles & Responsibilities
The Fiscal Intermediary – Employer Agent is responsible for the following items:
- Ensuring that the program is in compliance with all state and federal laws in regards to withholding taxes, reporting and insurance.
- Distributing clear instructions on completion of forms and gives description of roles, rights, and responsibilities of both parties.
- Process payroll on a timely basis.
- Withholding, filing and depositing Federal and State income, withholding and unemployment taxes on behalf of an individual.
- Issuing payroll checks and offering direct deposit.
- Processing tax levies, garnishments and court ordered deductions. Such as child support.
- Processing Earned Income Credit (EIC) for eligible employees.
- Preparing and filing monthly, quarterly and annually Federal and State Reports.
- Preparing and distributing the IRS W2, W3 and 1099M to the independent providers and other appropriate entities.
Your Fiscal Intermediary servers as your employer agent. The Fiscal Intermediary will make payments to your worker and any other vendor with whom you contract with.
This means that the Fiscal Intermediary handles many of the legal and technical employer duties related to the withholding and payments of taxes, unemployment and workers compensation insurance.
PAS your “FI” is here to provide and assist you with all of the services above.
If at ANY time you have a Question please do not hesitate to contact one of our offices if After hours leave a message.