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  1. #1

    Default Back Pay Sent Without Taking Out FICA and Medicare

    My question involves labor and employment law for the state of: California.
    I am a paid caregiver for a parent through a MediCAID/MediCAL program called In Home Supportive Services. Recently my parent (the recipient) won additional monthly hours for more than a year. Instead of adding the additional monthly hours to each month and sending me (the provider / caregiver) a check with the appropriate deductions taken out such as MediCARE and FICA, a lump sum check was sent to my parent instead.
    The problem is I really need credit for the additional time that I worked for retirement purposes. The local IHSS office's position is that nobody has ever complained before and they have never done it that way. Considering there are probably several thousand backpay awards every year, I doubt they are telling the truth that no one has asked before to get time worked credit and have deductions take out. However, it may be true that they have never bothered to credit the actual caregiver for the additional time.
    What can I do to get credited the additional several dozen hours that was awarded for each and every month going back over a year? The system does have ALJ's for the hearings, and a compliance department as well. I have talked to the compliance department and they state that since there was no specific request to credit the hours to the caregiver, that they are just going by standard operating procedure. However, no one said anything about how the additional hours would be allocated or credited until a check arrived with no deductions taken out.

    Thanks in advance.

  2. #2
    Join Date
    Oct 2014
    Posts
    5,246

    Default Re: Backpay Sent Without Taking Out Fica and Medicare

    Who was the actual payee of the lump sum check: you or your parent?

  3. #3

    Default Re: Back Pay Sent Without Taking Out FICA and Medicare

    I am having trouble responding to this thread. It might be because my browser is out of date. I made three attempts last night to respond, and just now sent a test response and for some strange reason I was asked if I wanted to leave the page, I said yes and ended up here.

    Ok, here goes. Normally, when I get paid MediCARE, FICA and SDI/DIEC is taken out, State is taken out but can get that back when filing a return. I represented my parent (the recipient) as the authorized representative in a hearing requesting more caregiving hours going back many months. I am also the sole caregiver (provider). When my parent was awarded an extra hour a day, a lump sum check was generated in my parent's name. The problem is I worked those hours, was the authorized representative at the phone hearing, and nobody said to me that any backpay would come in a lump sum with no credit going towards my own retirement.
    Do I have any recourse? The amount of money I am not being credited having worked is equivalent to 2 and 1/2 months of work and for me it is essential I get credited for time worked.

  4. #4
    Join Date
    Feb 2008
    Posts
    625

    Default Re: Back Pay Sent Without Taking Out FICA and Medicare

    You might read through this article linked below about the IRS changing the taxation of IHSS payments. Do you happen to live with your mom?

    http://inewsource.org/2016/03/28/rul...ia-caregivers/

    It sounds like the IRS has possibly changed the taxation of IHSS payments to caregivers and it is possible it never should have been taxed.

  5. #5

    Default Re: Back Pay Sent Without Taking Out FICA and Medicare

    i'm aware of that situation. It basically seems to be applying to parents with kids who are on IHSS.
    Some parents desire to have their FICA and MediCARE deductions for their own retirement, others do not want the FICA and MEDICARE, State and Federal taken out because they need every penny.

    It may not relate to my situation which is about an adult taking care of their parent, which is considered a different scenario. The word excludable in that article seems to imply it should be up to the choice of the caregiver and no one else, but for some reason Adults who are taking care of their children at a dramatically lower cost to society then if that child were institutionalized don't seem to have a choice. What is even more unfair about that situation is that some parents gave up higher paying jobs to become caregivers, nurses have quit their jobs to take care of kids who would otherwise be institutionalized, and the reward they get is their work at much lower pay then their prior job does not even go towards their own retirement.

    However, in the situation of an adult caregiving for a parent, (the costs for home healthcare are dramatically lower if an aged and disabled person is kept in their home rather than placed in an assisted living situation) the MediCARE, FICA, deductions are being taken out, except for the backpay situation. Ultimately, it's work I performed in which I am not getting credited.

  6. #6
    Join Date
    Feb 2008
    Posts
    625

    Default Re: Back Pay Sent Without Taking Out FICA and Medicare

    Sorry that didn't help. I do have another question. At any time did you put these extra hours on a timesheet to show they were worked over that time period? i.e. did they know YOU were the one that was due for that time? I guess I am just questioning how the request for extra hours to be paid was made known to them - because it sounds like your name was not attached but your mom's was? Did the compliance office state how you could get that to happen now, if at all possible?

  7. #7
    Join Date
    Jun 2014
    Posts
    2,228

    Default Re: Back Pay Sent Without Taking Out FICA and Medicare

    You can only earn four work credits a year. In 2017, you must earn $1,300 for one work credit. Does the back pay really make a difference?

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