FASS. Setting up Funded Family Care

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1 FASS Setting up Funded Family Care

2 Copyright Funding Advisory & Support Services 2014

3 Funding Advisory & Support Services Welcome to Funding Advisory and Support Services (FASS). Now you ve been referred for Funded Family Care (FFC), there are some responsibilities you need to be aware of and a few forms to complete. Our staff will help you through the process. This guide contains the information and forms you will need to get started with FFC. So what is FFC? On October , the Ministry of Health's FFC operational policy came into effect. FFC allows for Disability Support Services funding to some disabled people 18 years or over who choose to employ an eligible family/whanau member to provide some or all of their funded disability supports. What does FASS do? FASS is the FFC host agency. Once you have been assessed and approved by the NASC, this is where we come in. Our role is to help make sure you have the advice and tools you need to meet your responsibilities under the FFC operational policy. We are contracted by the Ministry of Health but are an independent, notfor-profit NGO. contact you and arrange a face to face meeting. The purpose of the meeting is to review the FFC Notice, discuss the nature of the employment relationship between the disabled person and their family carer, agree an Individual Service Plan, and make a plan for the management of the FFC payments. Before we meet? Our meeting will take around 2 hours. There are a couple of things you should arrange beforehand. The Ministry will only make payments to the disabled person s bank account. We recommend that a sub-account is opened that will be used only for the FFC payments. The account must be able to have a direct debits facility (for those intending to use the services of a payroll provider). It is important that you ask the bank for a printed verification of the account. We will need the IRD number of the disabled person as they need to be registered as an employer. We will want to view some form of ID for the family carer, such as a driver s license or passport. Setting you up Once we receive your referral from the Needs Assessment and Service Coordination Organisation (NASC), we ll

4 The set-up process Referral received from NASC FASS contact family to discuss set up process & arrange meeting Introduction pack posted to family with FFC Notice Set up meeting with family Documentation completed: Individual Service Plan Sector Services form Employment agreements Payroll (optional) IR 597 (optional) Date Address Dear We have received a referral from your Needs Assessment and Service Coordination organisation (NASC) asking us to work with you in relation to your support services under the Government s Funded Family Care (FFC) policy. As your NASC will have told you, you have responsibilities as the employer of your family carer. Our role is to help you to set up straightforward systems to manage these responsibilities, including developing employment agreements and making payments to your carer(s). We want to keep down the level of administration required of you, and keep paperwork to the bare minimum. There is of course some documentation required. To reduce unnecessary delays in getting your payment arrangements in place we ask you to get a couple of things ready for our visit: A Bank Verified Deposit Slip stamped by the bank or Bank Verified Bank Account (i.e. the top of a bank statement) in your name. Please note that the account you use for managing FFC payments should not be a savings account as these often don t allow for funds to be electronically withdrawn, which will be necessary in order to pay wages to your family carer. Refer to the enclosed document for further advice on suitable accounts. Your IRD number Some form of legal NZ identifier (Passport, driver s licence, etc.) for the family carer(s) who will be providing you paid support. It is important to note that income under the FFC policy may affect any income support you or your carer receive through Work and Income or Housing NZ rent. We will discuss the implications of this when we meet with you. Following our visit, it will be necessary for you to discuss the impact that your FFC arrangements might have on other sources of income. You ll find enclosed a copy of the Funded Family Care Notice This document spells out the terms and conditions of the funding arrangements of the family care policy. Please read this before our meeting so that we can answer any questions you might have. We will arrange to meet with you and your family carer soon. If you have an advocate, it will be helpful if they are also present. Please don t hesitate to call me with any questions or concerns. Regards Auckland info@fass.org.nz Phone: Web: Post: PO Box 83 Albany Village Individual Service Plan (ISP) completed and submitted to NASC with FFC service start date request NASC approve ISP and confirm service start date with FASS & Ministry FASS posts copy of ISP to family and advises them of start Payroll provider sets family up and provides training in processing wages Optional Ministry of Health begins payments

5 Funded Family Care Notice 2013 (Notice) The Notice is an agreement between the Ministry of Health and the disabled person. It also recognises the responsibilities of the family carer and the Ministry s agents. We will provide you with a copy of the Notice prior to meeting with you. During the meeting we ll answer any questions you may have and highlight the following aspects: The disabled person accepts the terms and conditions in the Notice when they accept their first payment for FFC. The hourly rate for FFC is based on the adult minimum wage and other employer obligations. The disabled person must use the funding only for the purposes of paying the family carer or for replacement care (when required). The disabled person and the family carer must comply with monitoring or auditing processes, and with any requirements following those processes. Any reason that might impact on the safe provision of support to the disabled person or affect the entitlement to FFC payments must be communicated to the NASC. For example, long hospital stays and overseas travel may affect FFC arrangements. The disabled person must have a back-up arrangement that ensures the continued delivery of safe supports to the disabled person. The family carer must not carry-out any other paid work, outside the agreed hours of the disability support services, if that work is likely to affect the provision, safety or quality of those services. Funded Family Care payments FFC payments are paid into the eligible disabled person s bank account. They are paid at a rate that takes into account various provisions required for managing the payment of wages to a family carer who is employed by the eligible person. It is important to note that FFC payments received by the disabled person are non-taxable, while the wages paid to the family carer are considered to be taxable income. The family carer will need to carefully consider the implications to any existing income streams, Housing NZ rents, etc. We will discuss this further when we meet with you. To manage the payment of wages to the family carer (and back-up carer when required) you will need to engage the services of a payroll provider or accountant. Alternatively, you could choose to manage your own leave and wage records, and make monthly PAYE payments to IRD. FASS has a working relationship with a third party payroll provider that provides one on one training and ongoing support for people receiving FFC payments.

6 How the money is paid... Family carer (they are an employee) Payroll provider Back-up carer (they are a casual employee) Employer - this is always the person with the disability What the money is for... Wages Leave Sick leave Annual leave Statutory or public holiday leave ACC employer levy Kiwisaver employer contribution EMPLOYER (person with the disability

7 Paying for replacement care... Annual leave Sick leave + + Back-up carer Back-up carer Other considerations... ACC payment KiwiSaver July Each year ACC will send you an invoice for your ACC employer levy. This provides cover for the carer for work place injuries. 3% % An employee has the right to belong to a KiwiSaver scheme. If the employee chooses to join KiwiSaver, it is compulsory for employers to contribute 3% of their employee s gross salary to the scheme. This is on top of their regular pay.

8 Break-down of Funded Family Care gross hourly rate As at 1 April 2014 Payment type Calculation Rate Adult minimum wage (family carer wages) Per legislation $ The family carer is paid 52 weeks a year including while on annual leave, sick leave, and on public holidays. As such, no further provision is made for these items. Annual leave (back-up carer wages) Paid to a back-up carer when family carer is on annual leave. Builds up over 12 months so the family needs to monitor the available funds. For example, after 6 months there would be enough accrued funds to employ a back-up carer for 2 weeks. Sick leave (back-up carer wages) Payment for the back-up carer when the family carer is on sick leave. Family carer has entitlement of 5 days sick leave per year. 20 days (at the number of hours usually worked) $ days $ 0.27 Statutory or public holiday leave Payment for a back-up carer when the family carer is on stat leave. Note - it will take time to build this up so there may not be enough if any stat days fall due soon after FFC services start. Included in this is provision for time and a half pay to the family carer when they work a stat day. Annual leave for back-up carer The back-up carer s annual leave entitlement, i.e. 8%. This is added to the casual worker s regular pay and so does not accrue over time. KiwiSaver (3.0% employer contribution) The employer (disabled person) must pay this to the family carer if the carer is a KiwiSaver contributor. ACC Payment to cover the ACC employer premium. The employer will be invoiced each year by ACC (usually in July) and must pay this invoice from accrued funds. 11 days $ % on gross pay $ % on gross earnings $ 0.43 $1.08 per $100 $ 0.18 $ 17.31

9 S S I m changing my bank account. Who do I need to notify? You ll need to notify the Ministry of Health and any third party managing the payment of the carer s wages, such as a payroll agency. I want to pay someone as a back-up carer. What do I do? Back up carers should be treated as casual employees. Your payroll provider will be able to assist you in setting them up so they can receive wages. Who can the backup carer be and how much can I pay them? You can choose any person to provide back up care to you so long as they are over 18 have the skills to support you safely. They are paid at the same hourly rate as your family carer, plus 8% of their gross earnings as annual holiday pay. Can I change the person caring for me? Yes you can. However, if you intend to change your main family carer you need to discuss this with your NASC. The NASC have increased my FFC hours. Who do I need to notify? You will need to notify any third party payroll provider so they can make the necessary change to the wage paid to your family carer. I intend to manage the payments myself and need to know what ACC classification unit to apply. The Ministry has calculated the ACC employer levy on ACC Classification Unit (CU) Health care services (not elsewhere classified).

10 I have received an individual tax return pack from the Inland Revenue Department (IRD). What should I do? Because you are a registered employer IRD will likely post you a Tax Return request following the end of each financial year. You will need to contact IRD and explain that you are registered as an employer for the purpose of employing your family carer under the Ministry s Funded Family Care policy. Once they have this information, IRD should flag your file as not needing to submit a tax return. Due to IRD s internal process, this may happen each year. I have received an invoice from ACC for the employer levy. ACC invoice registered employers annually for an employer levy. This ensures your family carer(s) will be covered for workplace injuries. You should pay this invoice from the funds that will have accrued in your account. My family carer worked on a public (statutory) holiday. What is their entitlement? Like all employees, they are entitled to time and a half pay for the hourse worked that day. People should contact their payroll provider to get assistance in processing the additional time.

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13 All parties to this service plan agreement to print their names and sign below: Person: Guardian/advocate: Family carer: Family carer: Other witness: Host facilitator:

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15 Funded Family Care SEND TO: Sector Services PO Box 1043 Wellington 6140 Name Disabled Person s Details NHI Number Phone Number Disabled Person s Bank account details Verified Bank Details attached? For ALL bank accounts setups/bank account changes (including suffix changes) a copy of a Bank Verified Deposit Slip stamped by the bank or Bank Verified Bank Account (i.e. the top of a bank statement) in the Name of the Individual with the FFC service is required. Yes No Are you GST Registered? Yes No GST Number (if GST Registered) GST No. - - Signature of Disabled Person or Authorised Representative I confirm the information provided above is correct Name Phone Number Who you would like us to phone if we need more information NOTES Address: Tax: All correspondence will be sent to the address of the disabled person held by the NASC. Please contact your NASC to update this address. Any Income tax and associated tax compliance is the responsibility of the disabled person, not the Ministry of Health. It is the responsibility of the disabled person to inform the Ministry of Health of any bank account and/or GST changes. Sector Services Use Only Name & Signature of Officer Checking Form Bank Account Details Entered By Date

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17 Elect someone to act on your behalf IR 597 March 2011 Complete this form to nominate someone (for example, a family member or company s staff member) to act on your behalf with Inland Revenue. This includes making enquiries, receiving your statements, refunds and other correspondence. Having a nominated person does not change your responsibilities. You are still responsible for your own tax affairs, so you need to make sure that any returns are filed and tax paid by the due date. Use the space available on the back of this form if you need to nominate more than one person. For individuals, a nominated person can only be chosen by the person whose account the nominated person will have authority. For a non-individual, a nominated person (for example, payroll clerk or office administrator) can only be set up by a company director, a trustee or estate administrator, or an executive officer. To protect your privacy and security we can only discuss your tax affairs and/or child support with you or the person you nominate to act on your behalf (your nominee). Child support customers By signing this form you are allowing the nominated persons(s) to have access to your child support information and to discuss your child support matters with us. Please note that it does not allow the nominated person to authorlse forms on your behalf. Please tick the circle if you want your nominee to receive your statements and correspondence. Please send your completed form to Inland Revenue Child Support, Private Bag, (your local city). Your first name(s) Your surname Your IRD number Your phone number ( ) Your postal address (We need this information to validate the nomination) (8 digit numbers start in the second box. ) Non-individuals only Organisation s name Organisation s IRD number Nominator s position (eg director, shareholder) Please provide details of the person who will act on your behalf Your nominee s first name(s) Your nominee s surname Your nominee s IRD number Your nominee s phone number ( ) Your nominee s postal address Position occupied non-individuals (eg office administrator) Show which accounts your nominee will act on your behalf for and how long they will act for Start date Day Month Year End date Day Month Year Please tick: the appropriate circles complete dates you want your nominee to act on your behalf by completing the start date and end date boxes. If you want them to act indefinitely leave the end date blank You can end a nominated person s authority at any time by phoning us on (individuals) or (business). Working for Families Tax Credits* Fringe benefit tax Goods and services tax Income tax PAYE Rebate claims Student loan KiwiSaver Child Support Other (please specify) Your signature *Previously known as family assistance / / Date

18 Please provide details of the person who will act on your behalf Your nominee s first name(s) Your nominee s surname Your nominee s IRD number Your nominee s phone number ( ) Your nominee s postal address Position occupied non-individuals (eg office administrator) Show which accounts your nominee will act on your behalf for and how long they will act for Start date Day Month Year End date Day Month Year Please tick: the appropriate circles complete dates you want your nominee to act on your behalf by completing the start date and end date boxes. If you want them to act indefinitely leave the end date blank You can end a nominated person s authority at any time by phoning us on (individuals) or (business). Working for Families Tax Credits* Fringe benefit tax Goods and services tax Income tax PAYE Rebate claims Student loan KiwiSaver Child Support Other (please specify) Your signature / / Date Please provide details of the person who will act on your behalf Your nominee s first name(s) Your nominee s surname Your nominee s IRD number Your nominee s phone number ( ) Your nominee s postal address Position occupied non-individuals (eg office administrator) Show which accounts your nominee will act on your behalf for and how long they will act for Start date Day Month Year End date Day Month Year Please tick: the appropriate circles complete dates you want your nominee to act on your behalf by completing the start date and end date boxes. If you want them to act indefinitely leave the end date blank You can end a nominated person s authority at any time by phoning us on (individuals) or (business). Working for Families Tax Credits* Fringe benefit tax Goods and services tax Income tax PAYE Rebate claims Student loan KiwiSaver Child Support Other (please specify) Your signature / / Date RESET form

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20 Copyright Funding Advisory & Support Services 2014