This memo will answer some frequently asked end-of-year questions as well as tell you what you can expect from Palco as we close out 2022.
The IRS requires that all 2022 W-2s be mailed to employees no later than January 31, 2023. Palco will mail all W-2s through the United States Postal Service. If you do not receive your W-2 by February 15, 2023, please contact our Customer Service team and they will assist you with reissuing the W-2.
Make sure Palco has your most up-to-date mailing address no later than 12/31/2022! Contact Customer Service or submit a Change of Information form to email@example.com to update your address at any time.
W2 Forms, Exclusions, and Exemptions
If a strike occurs, you will receive a letter from CDCO (Consumer Direct Colorado) on behalf of HCPF notifying you of the strike and informing y
Per IRS Notice 2014-7, when a worker lives full time with a Medicaid self-directing program participant, for whom the worker provides care, the wages may be exempt from federal income tax withholding, which means depending on when the exclusion went into effect the W-2 could show $0.00 wages paid or partial wages paid. Depending on the State, wages may also be exempt from state income tax withholding. The IRS also exempts some Employers and Workers from paying FICA (Social Security and Medicare) taxes.
If a Worker is exempt from FICA taxes and qualifies for the Difficulty of Care (DOC) exclusion, it is likely they will have no reportable wages and a W-2 will not be sent out.
If a Worker feels they qualify for the DOC exclusion and did not notify the FMS, they should work with a Tax Professional on how to report those wages on their 1040. You can update your information with Palco at any time by completing the Payroll Information Worksheet specific to your State/Program which can be found on the Palco website. Submit the completed Payroll Information Worksheet to firstname.lastname@example.org.
Payroll schedules will be published in December 2022 for the 2023 calendar year. Please be sure to visit your program page, located on the Palco website (https://palcofirst.com), to download a copy.
If you submit paper timesheets, please be aware that the submission deadline has changed for 2023. If the timeline makes it difficult for you to submit, save time by using Palco Connect to submit online. Connect is the most efficient way for you to submit your time to Palco including additional benefits such as reports and pay stubs available on demand. For assistance in registering, contact our Customer Support team and they will gladly assist you.
Did the minimum wage change in your state? If you live in Ohio, Colorado, Nevada, or New Mexico your minimum wage standards will increase in 2023. Make sure you review your Worker’s wages and take the necessary steps to ensure you are in compliance with your state’s minimum wage practices.
At the end of 2022, Palco will review all worker wages and perform automatic updates to ensure all Employers are in compliance with their state minimums. If this affects you specifically, you will receive a notice.
Rate of pay forms specific to your state/program can also be found on the Palco website.
As an Employer, Palco calculates your employer tax rate on an individual basis to give you the best rate possible. Your State Unemployment (SUTA) rate may fluctuate in the new year depending on your record as an Employer. Please watch for updates on your monthly reports/statements during the new year.
If you are a Worker who did not meet the annual FICA (Social Security and Medicare) threshold for 2022, Palco will file all required amended payroll tax returns and issue payments for instances where there have been over collected taxes from employees’ compensation. Workers will receive refunds for over collected Social Security and Medicare taxes directly from Palco. These refunds will be paid to the Worker in January immediately following year-end. The Worker should not file a claim for refund of over collected Medicare or Social Security with the IRS. For more information about this, contact the IRS or go online to review Publication 15, Circular E- https://www.irs.gov/publications/p15.
Effective 2023, you will no longer find blank copies of the Participant/Employer enrollment packets and Worker packets historically posted to the program specific web pages. This change is an effort to encourage individuals to utilize our online system or request a prefilled packet. We feel strongly that using one of these two methods for enrollment rather than a blank enrollment packet will reduce errors and in turn, expedite overall enrollment times. Intake is a quick and efficient platform for signing and submitting all your enrollment documents to Palco. To request a link for online enrollment or a prefilled packet, complete the Intake Form found on your program specific website pages or contact our enrollment department at email@example.com.
Change of Information
If you or your Workers have changed any of your information in 2022, we need to hear about it! Please update Palco immediately for any changes in your address, phone number(s), email address or other important details. You can find a Change of Information form on our website or request one by contacting our Customer Service team at 1-866-710-0456.