PL 002.pdf

Public Partnerships, LLC (PPL) South Carolina Financial Management Services

1 Cabot Road; Suite 102 Medford, MA 02155

Employer Information Packet For New Employers

SOUTH CAROLINA FINANCIAL MANAGEMENT SERVICES

Dear Participant/Employer:

Public Partnerships, LLC (PPL) is pleased to serve as your Financial Management Services (FMS) provider.

Enclosed are the forms that all new employers need to fill out, sign, and return to PPL. Below is a brief explanation of the purpose of each form. While PPL and the SC Department of Health and Human Services (DHHS) remain committed to providing as much flexibility to participants as possible, we must follow federal and state employment and tax laws. In order to comply with these regulations, all completed forms must be properly completed and received by PPL to avoid possible delay in payments to your providers.

If you have any questions, please contact your local CLTC office for clarification.

FORMS TO BE COMPLETED, SIGNED AND RETURNED TO PPL

1. IRS Form SS-4: Application for Employer Identification Number. This IRS form establishes a Federal EIN number for you as an employer, so that PPL may, on your behalf, withhold income taxes from your employee’s wages and file and pay employment taxes to the IRS. This form only pertains to the Financial Management Services, and will have no effect on your personal income taxes or other personal tax matters.

2. IRS Form 2678: Employer Appointment of Agent. This federal form will authorize PPL to act on your behalf to perform withholding and other tax preparation/filing functions.

1 Cabot Road; Suite 102 Medford, MA 02155

Employer Information Packet For New Employers

3. SC Form 2848: Power of Attorney & Declaration of Representative. This

State form will authorize PPL to speak and write to the State Department of Revenue on your behalf about tax withholding issues only.

4. SC UCE-1010: Written Authorization Form. This State form authorizes PPL to represent you regarding unemployment insurance tax and/or benefits matters with the South Carolina Department of Employment and Workforce.

Please sign and mail all of the above forms to PPL.

Please note that PPL is unable to issue payments until all forms have been signed, received, and processed.

Please contact your local CLTC office if you have any questions.

PPL South Carolina FMS Program staff

Helping Participants with Financial Management Services

NEW EMPLOYER PACKET CHECKLIST

STEP ONE

Please fill out where applicable and sign all the tax forms enclosed in your packets.

□ IRS Form SS-4: Application for Employer Identification Number

□ IRS Form 2678: Employer Appointment of Agent

□ SC Form 2848: Power of Attorney & Declaration of Representative

□ SC UCE-1010 Written Authorization Form

STEP 2

Please send signed and dated forms to:

1 Cabot Road; Suite 102 Medford, MA 02155

All forms must be reviewed, signed, dated, and returned to PPL prior to issuing paychecks to employees.

South Carolina Financial Management Services

Frequently Asked Questions about PPL’s Payroll Services

As an Employer, you will:

Recruit, hire, and fire all employees Establish performance evaluation criteria for each employee Establish schedules and tasks to be completed by each employee Keep track of services received Contact the CMS clerk at the local CLTC office for any issues regarding your employee’s payroll

As your Financial Management Service Provider, PPL will:

Issue paychecks to employees Withhold appropriate taxes at the state and federal level for each employee File monthly, quarterly, and annual forms and tax deposits with state and federal agencies (See below to learn more about what taxes are withheld) Issue W-2 Statements to each employee starting with January 2009 Make payments to vendors for authorized services

Do my employees have to complete paperwork too?

Yes. When you identify a new employee, contact your Case Manager who will make a referral to

UAP.

Do employers pay taxes too?

Yes. Employers must match each employee’s Social Security and Medicare (FICA) contribution.

In addition, the employer must pay federal and state unemployment for each employee. Acting as your FMS, PPL will complete all the required paperwork and process these payments on your behalf.

Why do I need to sign the USCIS I-9 Form for my employee?

Federal law requires all employers to complete the I-9 with their employees. The USCIS I-9 Form certifies that your employee is eligible to work in the United States. You must verify the employee’s identity, by confirming the official government documents and listing the name of the document, issuing authority and expiration date on the I-9. You must verify their identity under penalty of perjury. You should not sign the I-9 unless you have seen official documents which confirm their identity.

Will I be required to pay for services out of my own pocket?

No

Will I ever receive letters from the IRS, Department of Revenue, and/or Department of Employment and Workforce?

Possibly. If you do, forward this information to:

What taxes are withheld for each of my employees?

Most employees are liable for State and Federal Taxes. PPL will withhold Social Security, Medicare (FICA), and state and federal income taxes from each employee’s paycheck as applicable. A summary of all employee tax withholdings will appear on their pay stub. PPL will also prepare and mail a W-2 Wage Statement to each employee by the end of January.

Questions?

Public Partnerships encourages you to speak with your CLTC Office if you have any questions regarding payroll requirements or the process in general.

Worker’s Compensation Information

The following information is based on research we have conducted on your behalf. The purpose of this information is to increase your awareness of worker’s compensation insurance and your responsibilities. This information should not substitute for or in any way be considered legal advice and you are encouraged to seek appropriate legal counsel regarding this and any other personnel issue.

What is Workers' Compensation?

Workers' compensation laws provide money and medical benefits to an employee who has an injury as a result of an accident, injury or occupational disease on-the-job.

Please consider the following:

1. According to South Carolina regulation, Household Employers are exempt from worker’s compensation requirements if they have fewer than four household workers. If you hire four or more workers, you must provide workers compensation coverage.

2. Your employees do not have worker’s compensation coverage unless you, the employer, provide it.

3. For your protection, you are advised to obtain a worker’s compensation policy through a worker’s compensation carrier.

4. If an employee is injured on the job, you could be liable for covering the cost of care for that injury and follow-up and related disability.

5. Your homeowner’s insurance policy may provide you with some limited protection and may require you to add additional coverage. Check with your insurance agent and explain what you are doing so he/she can advise you relative to your policy.

6. A homeowner’s policy cannot substitute for a worker’s compensation policy.

Homeowner’s policies usually only provide you with additional liability protection and up to $5,000 medical coverage for your domestic employee. Each policy is different so check with your agent.

Please contact your local CLTC Office.

Basic Employment Law

Employment law is complicated. The purpose of this overview is to briefly review some requirements. This overview should not be considered a substitute for competent legal counsel.

When You Hire an Employee:

1. You cannot base hiring decisions on personal characteristics that are not job-related. These characteristics often include: age, race, color, religion, sex, national origin, or disability. As an interviewer, you are not allowed to ask questions relating to these characteristics. It is illegal for an employer to consider these characteristics with regard to promotions, job assignments, termination, or wages.

2. You must hire people who are authorized to work in the United States — citizens and legal aliens with proper documentation. You are required to complete a Form I-9 to verify their authorization to work.

3. Avoid classifying your workers as independent contractors.

After You Hire an Employee:

1. The work environment must be “free from recognized hazards that are causing or are likely to cause death or serious physical harm.”

2. Your employees should not be subjected to circumstances that would create a “hostile work environment.” Such an environment can be many things, but an employee should never be subjected to sexual harassment or belittlement, jokes, or prejudice because of their age, race, color, religion, sex, national origin, or disability.

3. You must pay your employees at least minimum wage. You must pay your employees at least one and one half times their regular pay for all hours worked in excess of 40 hours in a workweek.

If You Need to Terminate Employment:

South Carolina is an Employment at Will state, meaning that both you and your employee have the right to terminate employment with or without cause; but it is important that you treat people professionally and fairly. You cannot lay off an employee because of their age, race, color, religion, sex, national origin, or disability.

More Information:

1. For free information you can access: Federal Department of Labor:

www.dol.gov. They issue a Small Business Handbook.

2. Recommended Reading: The Employer’s Legal Handbook, published by Nolo. This book can be purchased online at www.nolo.com or from area bookstores.

Please contact your local CLTC Office.