Financial management services (FMS) are an important aspect of the Self-Determination Program. Every participant must enlist the help of an FMS, but there are multiple models to choose from. The sole employer FMS model is one of the options for those who plan to hire employees, but it isn’t the only one. Here’s what you need to know about choosing and using the sole employer model.
When individuals enroll in the Self-Determination Program (SDP), they’re required to enlist the help of a financial management service (FMS). This is the entity responsible for overseeing SDP budget funds, paying service providers, and maintaining records of how and where SDP funds are spent.
There are three different types of FMS models:
In all of these models, the FMS handles SDP payments and reports. It also can help manage an individual’s budget. The sole employer and co-employer model, however, can provide additional support for those who plan to hire employees.
As the name suggests, with the sole employer model, SDP participants do not share employer responsibilities with their FMS. They maintain full responsibility for obtaining liability insurance, worker’s compensation insurance, and an employer tax reporting number.
The FMS still provides support by helping ensure compliance, managing funds, and making payments. They also file taxes, verify background checks, and can help determine wages and benefits, but the SDP participant maintains full employer responsibility.
Choosing the right FMS model is important. Depending on your experiences and needs, you may choose to hire employees to help further your self-determination goals. Here are some pros and cons of the employer model to consider:
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The sole employer model is best for those with experience hiring and managing employees. Because the individual is responsible for obtaining the necessary insurance and tax identification number, they have full legal responsibility as an employer.
First-time employers might opt for the co-employer model, as it carries less risk and has the FMS handle most of the liability. Participants may also choose the bill payer model if they want to skip hiring employees altogether.
Not all FMS providers offer the same services. Once you decide which model is best for you, look for a provider that offers support for the model that suits you best.
Choosing the right financial management service is important to having the best SDP experience. With so many providers and models to choose from, it’s essential to understand all your options. NeuroNav is here to offer guidance, support, and insight when it comes to navigating California’s SDP.
Our independent facilitation services can help you get the most out of your SDP experience. Self-determination is at the heart of everything we do. We’ll help you get the specialized services and individualized support you need to achieve even your most ambitious goals. Schedule a free consultation today to see how we can support your dreams.