1. Individual receiving services is the employer.
Most often, the individual receiving services is the employer and holds the Federal Employer Identification Number (FEIN) for Home Health Care Services. The relationship between the employer and employee matters. As a parent or spouse of the FEIN holder, mandatory employer tax exemptions apply. These include FICA, FUTA and SUTA. Workers’ Compensation is optional. While this saves money in the budget for other expenses, it is important to remember that Social Security, Unemployment Insurance and Workers’ Compensation (unless opted in) are not covered benefits.
2. You control employee selection.
The individual receiving services or designated representative selects and hires the employees of their choice. These can be family, friends, neighbors, or others who care for them. Employees need to complete an application, including a background check, prior to employment and must be able to work with the individual on areas of assessed need.
3. Your employees receive benefits.
All employees hired under CDCS must meet the wage floor as dictated by the SEIU Collective Bargaining agreement. This includes optional Paid Time Off paid holidays, where hours worked are paid at time and a half. Department of Labor rules and regulations do apply including limited hours for employees under the age of 18 and overtime paid at time and a half for hours exceeding 40 per week.
4. It is designed for Flexibility.
One of the overarching benefits of CDCS is Flexibility. The employer or representative must create a plan to use the funds in a way that improves the quality of life for the individual receiving services. This can include staff support, a range of services, purchasing of goods and necessary home modifications to increase a person’s ability to be a part of their community.
5. The role of an FMS.
As a Financial Management Service, MRCI walks through the complicated parts of self-direction by your side by following all Department of Human Services, Department of Labor, and Internal Revenue Service regulations. The only thing you need to worry about is directing your care or coordinating services for your loved one.
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