Fiscal Employer Agent (Fea): Payment Process

01. Process Payroll. The provider must process payroll, including time sheets and taxes, in accordanc e with the participant’s SSP. The payroll process must include: (7-1-25) a. Payment of employer and withholding taxes to State Tax Commission and Internal Revenu e Service. (3-17-22) b. Payment of invoices to vendors. (3-17-22) c. Management of participant budget funds as per authorized SSP. (7-1-25) d. Garnishment of wages as per court orders. (3-17-22) e. Preparation of year-end federal and state tax forms. (3-17-22) f. Payment of worker's compensation insurance premiums. (3-17-22) 02. Requirement to Track and Log Time Sheet Billing Errors. The provider must track and log tim e sheet billing errors or time sheets that cannot be paid due to late arrival, missing, or erroneous information. Th e provider must notify the employee and participant within one (1) business day of when errors are identified on th e time sheets. (3-17-22) 03. Requirement to Track and Log Improperly Cashed or Improperly Issued Checks. The provider must track and log occurrences of improperly cashed or improperly issued checks and stop payment o n checks when necessary. The provider must reissue lost, stolen, or improperly issued checks at no expense to the participant or the Department within fourteen (14) calendar days of when the error occurred. (3-17-22) 04. Process Employee Payments. The provider must verify documentation and process payments via the preference of employees. The employee payment process includes: (7-1-25) a. Receipt of time cards from employees via mail, fax, or website by specified due dates. (3-17-22) b. Review time cards for accuracy and verify that timecards contain the following information: (3-17-22) i. Employer name and ID number. (3-17-22) ii. Employee name and ID number. (3-17-22) iii. Hours of work. (3-17-22) iv. Code for service. (3-17-22) c. Match codes to employment agreement to verify rate of pay. (3-17-22) d. Verify that rate of pay multiplied by the hours worked per each pay period is equal to the gross pay. (3-17-22) e. Calculate all taxes and other withholding. (3-17-22) f. Pay employees every two (2) weeks or semi-monthly. (3-17-22) g. Contact participant and representative to resolve problems with timecards or other documents prio r to pay-date, if possible. (7-1-25) h. Maintain an electronic complaint log of payroll issues and resolutions. (3-17-22) i. Verification of any money remaining in each participant’s budget and specific service categor y prior to issuing payment. (7-1-25) 05. Process Vendor Payments. When participants submit requests for payment to vendors, th e provider must: (3-17-22) a. Review, and maintain on file, the vendor payment request with attached voided vendor receip t submitted by the participant. (3-17-22) b. Ensure item or payment is authorized on the participant’s SSP. (7-1-25) c. Issue payment to the vendor on the same schedule as payroll. (7-1-25) 06. Process Independent Contractor or Outside Agency Payments. When the participant hires an independent contractor or outside agency, in accordance with the SSP, the provider must: (7-1-25) a. Obtain a W-9 from the contractor or agency. (3-17-22) b. Review, and maintain on file, the independent contractor or agency agreement submitted by th e participant. (3-17-22) c. Review, and maintain on file, the independent contractor or agency invoice for services submitte d by the participant. (3-17-22) d. Ensure service or payment is authorized on the SSP. (7-1-25) e. Issue payment directly to the independent contractor or agency. (3-17-22) 07. End-of-Year Processing. For purposes of end-of-year processing, the provider must maintai n relevant documentation and must: (3-17-22) a. Refund over-collected Federal Insurance Contributions Act tax (FICA) to applicable employees, o r to state government; (3-17-22) b. Prepare, file, and distribute IRS Form W-2 for each employee; (3-17-22) c. Prepare and file IRS Form W-3 for each participant represented; (3-17-22) d. Prepare and file State Form 967 for state income taxes withheld for each employer; (7-1-25) e. Report and pay any Unclaimed Property per Idaho State Tax Commission rules; and (3-17-22) f. Report and pay all state and federal unemployment insurance premiums. (3-17-22) 08. Transition to New FEA. The following items must be addressed if a participant transitions to a new FEA provider. For the purposes of a smooth transition between FEA providers, the two providers must wor k closely with one another to transfer the participant from the services one is no longer providing to the services th e other is providing. The following items must be transferred: (3-17-22) a. Participant’s FEIN and FEIN mailing address. (7-1-25) b. IRS Form 2678 Agent/Payer Authorization. (3-17-22) c. Depositing taxes and filing report. This includes Federal and State tax withholdings and Federal Unemployment Tax Act tax (FUTA). (3-17-22) d. Participant’s FUTA Liability Status. (3-17-22) e. FICA and FUTA Exemption Status of Participant Employees. (7-1-25) f. Unemployment Insurance (U/I). (3-17-22) g. Unemployment Insurance Experience Rate and Taxable Wage Base. (3-17-22) h. State Unemployment Insurance Liability Status of the Participant and Exempt Employees. (7-1-25) i. Unemployment Insurance Filing and Depositing. (3-17-22) j. State Income Tax - Account Number Agent Authorization, Filing and Depositing. (7-1-25) k. Budget Authorization - Authorized Services Spent and Remaining, Authorized Providers, an d Authorized Provider Rates. (7-1-25) l. Participant’s Representative, and Participant’s Employee and Provider Demographic Information. (7-1-25) m. Participant’s Employee New Hire Reporting, Liens and Garnishments, and Tax and Othe r Information. (7-1-25) n. Participant’s Independent contract and other information. (3-17-22)