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Guide to Tax Exemptions Based on Age, Student Status, and Family Relationship

Employees providing domestic services such as personal assistance may be exempt from paying certain federal and state taxes based on the employee’s age, student status or family relationship to the employer. In some cases, the employer may also be exempt from paying certain taxes based on the employee’s status.  IMPORTANT: Please see IRS Publication: #926 – Household Employer’s Tax Guide, and IRS website article: “Foreign Student Liability for Social Security and Medicare Taxes” for additional information.

 

IMPORTANT:

·         These exemptions are not optional. If the employee and employer qualify for these tax exemptions, they must be taken.

·         If the employee’s earnings are exempt from these taxes, the employee may not qualify for the related benefits, such as retirement benefits and unemployment compensation.

·         The questions regarding family relationship refer to the relationship between the employee and the employer of record (common law employer). In some cases, the program participant is the employer of record.  In other cases, the employer of record may be someone other than the program participant. Check program rules.

·         Program rules may prohibit some types of employees. For example, most Medicaid‐funded programs do not permit a spouse to be paid as an employee for providing services to a spouse. Check program rules.

·         PCG Public Partnerships will determine the tax exemptions that apply to the employee and employer based on the information provided by the employee. PCG Public Partnerships cannot provide tax advice.

 

Tax Exemptions for Non‐Resident Students

For a non‐resident student in the United States on an F‐1, J‐1, M‐1, or Q‐1 visa admitted to the US for providing domestic services, the employer and employee are exempt from paying FICA (Social Security and Medicare taxes) and the employer is exempt from paying FUTA (Federal Unemployment Tax) on wages paid to this employee.  The employer may also be exempt from paying State Unemployment Insurance, depending on the rules in the state.

 

Tax Exemptions for Children Employed by Parent

For a child under 21 employed by his or her parent, the employer and employee are exempt from paying FICA (Social Security and Medicare taxes) and the employer is exempt from paying FUTA (Federal Unemployment Tax) on wages paid to this employee until the child (employee) turns 21 years of age.  The employer may also be exempt from paying State Unemployment Insurance, depending on the rules in the state.

 

Tax Exemptions for Spouses Employed Spouses

For a spouse (husband, wife, or domestic partner in some states) employed by his or her spouse, the employer and employee are exempt from paying FICA (Social Security and Medicare taxes) and the employer is exempt from paying FUTA (Federal Unemployment Tax) on wages paid to this employee.  The   employer may also be exempt from paying State Unemployment Insurance, depending on the rules in the state.

 

Tax Exemptions for Parents Employed by Children

For a parent employed by his or her child and answering “No” to any of the additional questions under Question #5 (on the Information and Attestation – Relationship Questionnaire) regarding caring for a grandchild or step grandchild, the employer and employee are exempt from paying FICA (Social Security and Medicare taxes) and the employer is exempt from paying FUTA (Federal Unemployment Tax) on wages paid to this employee. The employer may also be exempt from paying State Unemployment Insurance, depending on the rules in the state.

 

For a parent employed by his or her child and answering “Yes” to all the additional questions regarding caring for a grandchild or step grandchild, the employer is exempt from paying Federal Unemployment Tax (FUTA) on wages paid to this employee. The employer may also be exempt from paying State Unemployment Insurance, depending on the rules in the state.

 

Tax Exemptions for Employee under Age 18

For employees under the age of 18 or turning 18 in the calendar year: If the employee is a student, domestic services are deemed not to be the employee’s principle occupation and the employer and employee are exempt from paying FICA (Social Security and Medicare taxes).

 

Employment Relationship Status

Federal Insurance Contributions

Act ‐ Social Security and

Medicare Taxes

(FICA)

Federal Unemployment Tax

Act

(FUTA)

State Unemployment

Insurance

(SUI)

Foreign Student on VISA in US for Purpose of Providing Domestic Service

FICA exempt

FUTA exempt

See footnote (1)

Child Employed by Parent

FICA exempt only until 21st

birthday

FUTA exempt only until 21st

birthday

See footnote (2)

Spouse Employed by Spouse

FICA exempt

FUTA exempt

SUI exempt (3)

Parent Employed by Child

FICA exempt only if not also caring for dependent child of the employer (employee’s grandchild)

FUTA exempt

SUI exempt except in NY and WA.  See footnote (4)

Employee Under 18 or Turning Age 18 in Calendar Year

FICA exempt through year of 18th

birthday only if enrolled as a full‐ time student

Not Applicable

Not Applicable

 

(1)      Foreign student in the United States on F‐1/J‐1 VISA is exempt from SUI in the following states: PA, WA.

(2)      Child under 18 employed by parent is SUI exempt in the following states: CA, IL, MA, ME, NJ, NV, OH, OR, PA, SC, TN, WA, WV. Child under 21 employed by parent is SUI exempt in the following states: AZ, GA, IN, KS, NY, OK, VA, WY, and District of Columbia.

(3)      For California only, a registered domestic partner employed by his/her registered domestic partner is SUI exempt.

(4)      Parent employed by child is SUI exempt in all states and the District of Columbia except for NY and WA.

Administrative Time

Starting with pay period of July 1 – 15, 2017, providers will be paid for one 15-minute unit for Administrative Time, per pay period. This can be found in the top section of your Earnings Statement.  IPOne will automatically add Administrative Time to the first Good-to-Pay timesheet for each pay period. For more information, view the Individual Provider Training Packet or contact the IPOne Call Center at 844-240-1526.
 

LIVE-IN EXEMPTION FROM OVERTIME PAY - COMING SOON!

Historically, NJ DHS has restricted self-directed employees to working no more than 40 hours per week per program. Public Partnerships systems are currently set up to deny payment for over 40 hours per week per NJ DHS program.  At the request of NJ DHS, employees who meet the federal qualifications for the live-in exemption from overtime pay will soon be able to work over 40 hours per week per program and be paid regular rates in accordance with federal and state law.  We are in the process of configuring our payroll system for each program to allow live-in employees to work over 40 hours per week per program at regular rates.  As soon as the system is ready, we will post a Live-In Exemption Form on this website for employers and employees to download and complete.  Only upon receipt and entry of the Live-In Exemption Form will hours over 40 be paid.  To learn if self-directed employees will qualify for the live-in exemption from overtime pay, please see below.
 
STEP 1: DETERMINE IF THE EMPLOYEE QUALIFIES FOR THE LIVE-IN EXEMPTION FROM OVERTIME PAY
 
Residency Test 
A live-in employee is exempt from overtime premium pay if the employee “…resides on the employer's premises either permanently or for extended periods of time”.  

  • Employer’s premises means the household where employed.  

  • Permanently, or extended periods of time means the employee lives, works, and sleeps in the household where employed for at least five (5) days a week (120 hours) or more. 
 
STEP 2: CERTIFY THE EMPLOYEE’S ELIGIBILITY FOR THE LIVE-IN EXEMPTION FROM OVERTIME PAY  Live-In Exemption Form - Coming Soon!

 If the employee qualifies for the live-in exemption:
All hours, including overtime (over 40 hours per workweek), will be paid at regular rates for all services upon receipt and entry of the Live-In Exemption Form. 

QUICK TIP!

You can check the status of your timesheet in the BetterOnline IPOne Web Portal. This will help you confirm it has been received by the due date on the Payment Schedule. After you submit your hours confirm that your timesheet status shows as Approved. 

Click here for instructions on viewing a timesheet status: Electronic Timesheet Status Steps

Feel free to call the IPOne Call Center if have questions about the BetterOnline IPOne Web Portal or would like assistance with submitting your E-Timesheet. We can be reached at 844-240-1526.

News Announcement on the Missouri Floods

Public Partnerships is redistributing the below information included in the News Release issued by the Missouri Department of Public Safety, State Emergency Management Agency on Monday, May 8th. 

Beginning in late April, much of Missouri was inundated with torrential rain, leading to record flooding of creeks, streams, and rivers. As much as 10 inches of rain fell in some areas, forcing people from homes, businesses and vehicles and closing a significant number of Missouri roads, highways, bridges and interstates.

As the flood waters recede, the entire state government is committed to working with the federal and local government agencies, as well as businesses, non-profits, and individual citizens to accelerate the recovery effort.

The Missouri State Emergency Management Agency is working with state, local, faith-based and volunteer agencies to provide one-stop shops for recovery assistance at Multi-Agency Resource Centers (MARCs) across the impacted areas of the state.

A total of 15 MARC locations have been selected across the state. In three locations, the MARCs will be open for two days. MARCs provide trained workers who can identify resources for assistance with housing, public assistance, mental health counseling, or to help understand insurance policies and the claim filing process. 

SEMA partners in the MARCs include the American Red Cross, Missouri Department of Social Services, Missouri Department of Mental Health, Missouri Department of Insurance, Missouri Department of Health and Senior Services, Catholic Charities, Society of St. Vincent DePaul, The Salvation Army and Convoy of Hope.

Below is the full listing of MARC dates and locations. Centers are open from 11 a.m. to 7 p.m.  Flood survivors should bring proof of address. Free child care is available. Residents impacted by flooding can attend any MARCs that suit their schedule.
 

Multi-Agency Resource Centers (MARCs)


Date

City

County

Location

Monday, May 8

Neosho

Newton

Lampo Center, 500 E. Spring St., Neosho, MO 64850

Monday, May 8

Anderson

McDonald

1st Baptist Church, 1 Friendship Lane, Anderson, MO 64831

Tuesday, May 9

St. Robert

Pulaski

Community Center, 114 J.H. Williamson Dr., St. Robert, MO 65584

Tuesday, May 9 and Wednesday, May 10

West Plains

Howell

West Plains Civic Center, 110 St. Louis St., West Plains, Mo. 65775

Wednesday, May 10

Ellington

Reynolds

Ellington City Hall, 100 Tubbs Avenue, Ellington, MO 63638

Thursday, May 11

Poplar Bluff

Butler

Memorial Baptist Church, 2215 South Broadway, Bldg. C, Poplar Bluff, MO 63901

Thursday, May 11

Eminence

Shannon

Eminence High School Old Gym, 505 S. 6th St., Eminence, MO 65466

Friday, May 12 and Saturday, May 13

Valley Park

St. Louis

Manchester United Methodist, 129 Woods Mill Rd., Ballwin, MO 63011

Friday,  May 12 and Saturday, May 13

Van Buren

Carter

Van Buren Youth & Community Center, CR 1204 State Highway D, Van Buren, MO 63965

Monday, May 15

Thomasville

Oregon

Location to be determined

Monday, May 15

Pacific

Franklin

Pacific Eagles, 707 West Congress, Pacific, MO 63069

Tuesday, May 16

Gainesville

Ozark

Location to be determined

Tuesday, May 16

House Springs

Jefferson

Northwest Valley Middle School, 4300 Gravois Rd., House Springs, MO 63051

Wednesday, May 17

Doniphan

Ripley

Caring Community Partnership, 209 Highway St., Doniphan, MO 63935

Thursday, May 18

Arnold

Jefferson

Arnold First Baptist Church, 2012 Missouri State Road, Arnold, MO 63010


Flood survivors are also encouraged to utilize United Way 211 to connect with vital resources they may need, such as shelters, clothing, and assistance with cleaning and sanitizing homes impacted by flooding. The service is available throughout Missouri by simply dialing 2-1-1.

211 is also available at http://211helps.org and is designed to connect those in need to a wide-range of resources 24-hours a day, seven days a week. 211 can be a lifeline for those coping with the devastation of the flood to find valuable resource with one just call. 211 is free and confidential. 

For information about Missouri flooding recovery and resources check Mo.gov/flood. The site is regularly updated with new information.
 

NJ Division of Developmental Disabilities - Key Training Session Dates

Transitioning to Public Partnerships and the VF/EA Model: Individuals/Families Orientation & Training Sessions

Individuals, Authorized Representatives, Self-Directed Employees, and other stakeholders currently participating in DDD’s Self-Directed Option are welcome to attend our Orientation and Training Sessions held throughout April and in early May. You’ll learn more about Public Partnerships and what to expect over the next few months.

Date/Time

Address/Directions

Registration

 

(click address for google maps)

(click RSVP to register)

Sat, April 8,
10:00am – 12:00pm

Courtyard Basking Ridge
595 Martinsville Rd, Basking Ridge, NJ 07920, Somerset County

RSVP

Tue, April 18,
1:00pm – 3:00pm

Courtyard Elizabeth
87 International Blvd, Elizabeth, NJ 07201, Union County

RSVP

Tue, April 18,
5:00pm – 7:00pm

Courtyard Elizabeth
87 International Blvd, Elizabeth, NJ 07201, Union County

RSVP

Thu, April 20,
3:00pm – 5:00pm

Courtyard Jersey City
540 Washington Blvd, Jersey City, NJ 07310, Hudson County

RSVP

Sat, April 22,
10:00am – 12:00pm

Fairfield Inn & Suites Vineland
301 Bluebird Ln, Millville, NJ 08332, Cumberland County

RSVP

Tue, April 25,
5:00pm – 7:00pm

Webinar Only (click RSVP to register)

RSVP

Thu, April 27,
5:00pm – 7:00pm

Marriot Forrestal
100 College Rd E, Princeton, NJ 08540, Mercer County

RSVP

Wed, May 3
5:00pm – 7:00pm

Class Academy at Monmouth County Vocational School
537 Tinton Ave, Tinton Falls, NJ 07724, Monmouth County

RSVP

Thu, June 1
10:00am – 12:00pm

Saddle Brook Marriot
138 New Pehle Avenue, Saddle Brook, NJ 07663

RSVP

 

 

 

 

 

In-Person Public Partnerships Enrollment Sessions for Individuals/Families Currently Utilizing DDD’s Self-Directed Employee Option

Public Partnerships invites Individuals, and their Authorized Representative if applicable, already enrolled in DDD’s Self-Directed Option to join us at one of our in-person enrollment sessions available in May and June. If you are unable to enroll with us online or over-the-phone, our staff will be glad to enroll you at one of these in-person enrollment sessions.

Date/Time

Address/Directions

Registration

 

 

(click address for google maps)

(click RSVP to register)

Sat, May 6,
10:00am – 6:00pm

Princeton Marriot at Forrestal
100 College Road East, Princeton, NJ 08540

RSVP

Wed, May 10,
12:00pm - 8:00pm

Hampton Inn & Suites
2134 W Landis Ave Vineland, NJ 08360

RSVP

Sat, May 13,
10:00am – 6:00pm

Hilton Newark Penn Station
1048 Raymond Blvd Newark, NJ 07102

RSVP

Wed, May 17,
12:00pm - 8:00pm

Holiday Inn Princeton
100 Independence Way Princeton, NJ 08540

RSVP

Sat, May 20,
10:00am – 6:00pm

Wingate by Wyndham
2196 W Landis Ave Vineland, NJ 08360

RSVP

Wed, May 24,
12:00pm - 8:00pm

Hilton Newark Penn Station
1048 Raymond Blvd Newark, NJ 07102

RSVP

Sat, May 27,
10:00am – 6:00pm

Holiday Inn Princeton
100 Independence Way Princeton, NJ 08540

RSVP

Wed, May 31,
12:00pm - 8:00pm

Hampton Inn & Suites
2134 W Landis Ave Vineland, NJ 08360

RSVP

Thu, June 1
1:00pm – 8:00pm

Saddle Brook Marriot
138 New Pehle Avenue, Saddle Brook, NJ 07663

RSVP

Fri, June 2
12:00pm – 8:00pm

Hyatt Regency Morristown
3 Speedwell Ave, Morristown, NJ 07960

RSVP

Sat, June 3
10:00am – 6:00pm

Courtyard by Marriott Mt. Laurel
1000 Century Parkway. Mt. Laurel, NJ 08054

RSVP

Mon, June 5
12:00pm – 8:00pm

Radisson Hotel Freehold
50 Gibson Pl, Freehold, NJ 07728

RSVP

Thu, June 8
12:00pm – 8:00pm

E Hotel Banquet & Conference Center
3050 Woodbridge Ave, Edison, NJ 08837

RSVP

Mon, June 12
12:00pm – 8:00pm

Holiday Inn Philadelphia - Cherry Hill
2175 Marlton Pike W, Cherry Hill, NJ 08002

RSVP

 

 

 

 

 

 

Update: Requirements for individuals using CDASS to transition to the Fiscal Employer Agent (F/EA) model

According to the Department of Health Care Policy and Finance, PPL would like to inform you that HCPF has received approval from the Centers for Medicare and Medicaid Services for amendments made to four Home and Community Based Service (HCBS) Medicaid Waiver programs effective August 1, 2016. 
 
The Brain Injury Waiver, Community Mental Health Supports Waiver, Elderly, Blind, and Disabled Waiver and the Spinal Cord Injury Waiver received approval to remove the Agency with Choice model from Consumer Directed Attendant Support Services. 
 
Waiver participants utilizing the Agency with Choice model are to transition to the approved Fiscal Employer Agent model by August 31, 2016. This deadline has now expired.  Public Partnerships is committed to your success and will continue to support you through this transition process. If you or your employees have not complete the Fiscal Employer Agent (FEA) transition paperwork, you must contact your PSS or PPL customer service at 1-888-752-8250 as soon as possible in order to remain in the CDASS program.

Home and Community Based Service (HCBS) Medicaid Waiver programs effective August 1, 2016

 

On behalf of the Department of Health Care Policy and Finance (HCPF), PCG Public Partnerships would like to inform you that HCPF has received approval from the Centers for Medicare and Medicaid Services for amendments made to four Home and Community Based Service (HCBS) Medicaid Waiver programs effective August 1, 2016. 

The Brain Injury Waiver, Community Mental Health Supports Waiver, Elderly, Blind, and Disabled Waiver and the Spinal Cord Injury Waiver received approval to remove the Agency with Choice model from Consumer Directed Attendant Support Services. 

Waiver participants utilizing the Agency with Choice model are to transition to the approved Fiscal Employer Agent model by August 31, 2016. Public Partnerships is committed to your success and will continue to support you through this transition process. Please contact your PSS or PPL customer service at 1-888-752-8250 to check on the status of your enrollment to the new Fiscal Employer Agent (FEA) model.