Understanding SDP FMS Models: Co-Employer Model

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Financial management services (FMS) are essential to the Self-Determination Program process. Depending on how you plan to use your SDP budget, there are a few different models designed to support your goals. The co-employer FMS model can be helpful for those looking to hire employees to help provide services. Here’s what you need to know about this model so you can decide if it’s right for you.

What is an FMS?

SDP participants need to use a Financial Management Service to make use of the program. FMS is a person or group that supports SDP participants in a number of ways, including:

  • Paying for services
  • Filing relevant tax statements
  • Managing SDP finances
  • Preparing required budget statements

There are a few different FMS options that can provide various levels of services depending on the model you choose.

How Does the Co-Employer Model Work?

If you plan to hire employees as part of your self-determination plan, there are two models to choose between: co-employer and sole employer. In the co-employer model, the FMS you work with will act as a fellow employer – alongside you – for those you decide to hire. 

This means you will share some employer responsibilities with your FMS provider. They handle liability and worker’s compensation insurance, so you’re protected in case something goes wrong. 

If you choose to use this model, you still reserve the right to make important decisions. You work with FMS to decide who to hire and terminate, and they can help you ensure the value of the services provided.  

Pros and Cons of the Co-Employer Model

The FMS model you select depends on how much work and responsibility you want to take on when it comes to managing the legal and liability-related aspects of employment.

The difference between co-employer and sole employer mostly comes down to insurance. With the co-employer model, your FMS obtains relevant policies, including worker’s compensation and liability insurance. Consider the main pros and cons of the co-employer model:

Co-Employer FMS Model

Pros

Cons

  • Less demanding for participants
  • Less risky
  • More freedom to focus on services
  • Less control
  • Not listed as sole employer on paperwork
  • Can be more costly, as extra work by FMS is paid via SDP budget

Is the Co-Employer Model Right for Me?

The co-employer model is a popular choice for those just starting out with SDP, especially if they don’t have experience being an employer. If you want the freedom to hire employees without taking on the potential risks that come along with that responsibility, the co-employer model is your best bet!

Learn More about SDP Payments, Budgets & More

The model you choose for FMS services is an important part of your SDP plan. There are a lot of decisions to be made, and there are times when we all need a helping hand. That’s why our team at NeuroNav is here to support and guide you through the process with independent facilitation services to help you make the decisions that serve you best.

If you live in California and want to learn more about navigating SDP services, book a free consultation today!

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