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 2023.
The IRS requires that all 2023 W-2s be mailed to employees no later than January 31, 2024. Palco will mail all W-2s through the United States Postal Service by this deadline. 2023 W-2s will also be available on Palco’s Connect portal. Palco will not offer any re-prints for W2’s this year.
If you need additional copies, please visit Connect. If you do not receive your W-2 by February 15, 2024, please login to Palco’s Connect portal to obtain a copy of your W-2.
If you received services from more then one FMS provider in 2023, you can expect to receive a W-2 from each of those vendors.
Make sure Palco has your most up-to-date mailing address no later than 12/31/2023! You can update your address in Palco’s Connect portal under the profile icon on the upper right hand side of the home screen or submit a Change of Information form to firstname.lastname@example.org to update your address at any time.
Exclusions, and Exemptions
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 email@example.com.
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.
Did the minimum wage change in your state / local area? 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 2023, 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.
Payroll schedules will be updated and published in December 2023 for the 2024 calendar year. Please visit your program specific page on the Palco website to download a copy.
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.
Change of Information
If you or your Workers have changed any of your information in 2023, 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 update your information in Palco’s Connect portal under the profile icon on the upper right hand side of the home screen or by downloading a Change of Information form on our website.
Have questions? We’re happy to help! Call: 1-866-710-0456 or visit our website: PalcoFirst.com