what is a ihss supplemental payment

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    I called one of the phone numbers I have for unresolved IHSS questions to get this question answered.  
    A supplimental payment is a payment for hours that were taken away from you earlier in the month.  For instance, if you report 50 caregiving hours for a recepient but IHSS pays you for 45 hours only for reasons such as lack of funds, then sends you another payment later for the remaining 5 hours; the pay for those 5 hours is a suplimental income.  If you always report the number of hours allowed and get paid for it; you have no supplimental payments.
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      Here's the answer everyone's looking for.

      IHSS Supplementary Payment
      This bill requires that IHSS providers be paid a supplementary payment. The supplementary payment is equal to the IHSS sales tax, plus any Social Security and Medicare payroll withholdings that are increased due to the supplementary payment.
      Gross-Income Exclusion
      This bill excludes from gross income for California income tax purposes IHSS supplementary payments.
      LEGISLATIVE HISTORY
      None.
      FISCAL IMPACT
      This bill does not significantly impact the department’s costs

      Revenue Discussion
      The supplemental payment and the income exclusion are designed to hold IHSS providers financially harmless for the new sales tax imposed on IHSS providers. The supplemental payment restores an IHSS provider’s wages, and the income exclusion prevents an IHSS provider from being taxed twice on the same income. As a result, the gross-income exclusion for IHSS provider supplemental payments has no revenue impact.


      Links/Sources

      www.ftb.ca.gov/law/legis/09_10bills/ab1612_Final.pdf

      www.ftb.ca.gov/law/legis/09_10bills/ab1612_100610.pdf


      -Chris
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        In-Home Supportive Services. California law allows an exclusion from gross income for IHSS supplementary payments received by IHSS providers.
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          Saying these payments can be excluded from gross income fails to answer the question -- what are they?  Best I can guess is that they are Federal funds that get passed to IHSS workers as regular income.  Searching the Internet for "IHSS Worker (Provider) Reimbursed Fee or Tax" gives some information, but it's way too convoluted for me to sort out.

          The obvious next question is how can one tell if one's IHSS income came from this source?   Need this to do my California state income taxes.
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            http://www.ftb.ca.gov/law/legis/09_10bills/ab1612_Final.pdf

            THIS BILL (AB 1612, as Amended October 6, 2010)
            Sales Tax on IHSS Providers
            This bill imposes sales tax on the gross receipts of the sales of IHSS sold at retail in this state.

            IHSS Supplementary Payment
            This bill requires that IHSS providers be paid a supplementary payment. The supplementary payment is equal to the IHSS sales tax, plus any Social Security and Medicare payroll withholdings that are increased due to the supplementary payment.

            Gross-Income Exclusion
            This bill excludes from gross income for California income tax purposes IHSS supplementary payments.
            • Please tell me, jm2011, how I can determine the amount of the supplementary payment, if any, that I may have received.
            • I am not sure.  But based on the following article, you should be able to tell from your pay check stub if you are taxed with the additional sales tax or “provider fee”.  The state would then pay the supplemental payments to cover the sales tax.  If you don't see all of those on pay stubs, you probably didn't receive this payment.

              http://www.udwa.org/all-news/ihss-budget-cuts/
              ...
              Upon federal approval, imposes a sales tax on IHSS providers – most commonly referred to as a “provider fee”. This tax would allow the State to access additional Federal Medicaid matching funds to support the IHSS program. The provider will be held harmless, however, in that the state will cover the amount of the tax on behalf of the provider. The reimbursed fee will include any additional amount of payroll withheld from the provider for federal income tax, Social Security and Medicare purposes. Would be implemented on the date permitted by federal approval.
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