Effective January 1, 2012, California has a new law, Senate Bill 459 (SB 459), which significantly increases the penalties that can be assessed against employers who willfully misclassify as independent contractors individuals who should be treated as employees. If your business utilizes independent contractors, it is extremely important that you take the time now to understand the impact of this new law to your company and to take the necessary steps to ensure appropriate compliance with this law. The highlights of the law are summarized below for your reference, although they are not
meant to be all-inclusive.

SB 459 makes it unlawful for any person or employer to engage in “willful misclassification” of an individual as an independent contractor. The law also prohibits charging individuals who have been misclassified as independent contractors a fee or making deductions (e.g., for space rental, goods, equipment maintenance) from compensation if those acts would have violated the law had the individuals not been misclassified.

This new law comes on the tail of the IRS’s recent announcement regarding its new settlement initiative, the Voluntary Classification Settlement Program (VCSP), allowing employers to: 1) come forward if they are not under audit, 2) reclassify independent contractors as employees, and 3) pay a significantly reduced employment tax.

Who has authority to assess compliance and penalties?

SB 459 authorizes the Labor and Workforce Development Agency, specifically the Labor Commissioner or a court, to assess specified civil penalties on persons or employers violating the law. SB 459 also requires the agency to take other specified disciplinary actions against these individuals.

What happens if I am found to have violated the law?

The law requires employers who are found to have engaged in a misclassification “to display prominently” for one year on their websites a notice to employees and the general public announcing, among other things, that the employer “has committed a serious violation of law by engaging in willful misclassification of employees.” The notice must be signed by a corporate officer.

What are the fines and penalties?

Violation of the new statute carries exposure for a civil penalty of between $5,000 and $15,000 for each violation. If the employer is found to have engaged “in a pattern or practice of violations,” the civil penalty is increased to $10,000 and $25,000 per violation. The law does not define the term “pattern or practice.”

Where should I go for assistance and additional information if I have independent contractors?

We strongly encourage you to consult with legal counsel experienced in employment practice matters to review your independent contractor relationships, to determine the appropriateness of these classifications, and to assist you if re-classifications may be required to mitigate potential legal exposures to your business.

// ESSENTIAL TO MEDICARE COST REPORT FILING //

This is to provide you with important information regarding your Individual Authorized Access to the CMS Computer Services (IACS).

It is very important that you do not ignore or disregard any emails from Centers for Medicare Services (CMS). Please take the actions instructed in their emails and respond to them ASAP, if requested.

Pay close attention especially to emails regarding password renewals, annual certification and you need to update the information on your account if your agency had a change of address and/or phone number. Failure to do so could result in your accounts being deactivated which would require significant time to restore.

Also, CMS recently updated their system which disabled some IACS accounts. Please login to your IACS account ASAP to make sure that your account is still active. You will be unable to log in to your account if your account has been disabled. If this happens, please call IACS ASAP so they can assist you in reactivating your account. There are also cases where you can log in, but you do not have a role anymore (i.e. Security Official). If this happens, you will need to reapply for that role again.

Unlike before, your Medicare intermediary (i.e. National Government Services, CGS, Palmetto, etc) will no longer be able to email you your Provider Statistical and Reimbursement (PS&R) reports.

Although CMS would assist in these complications, it does not guarantee a timely resolution. Please try to avoid any complications that could delay the submission of your cost report by responding to the CMS emails and checking your accounts’ status promptly. 100% of your Medicare payments maybe suspended if the cost report is not filed in a timely manner.

If you need any assistance with the information above, please contact the IACS External User Services (EUS) Help desk at 866-484-8049; EUSSupport@cgi.com or you may contact Claire from our office at (909)305-0211; claire [at] ebmcpa.com.

Please be informed:

Palmetto and CGS have announced new mailing addresses effective November 30, 2011 and December 5, 2011 respectively.

NEW PALMETTO MAILING ADDRESSES (Effective November 30, 2011):

For Cost Reports and Supporting Information

U.S. Mail

Palmetto GBA
Attn: Cost Report Acceptance (AG-330)
P.O. Box 100144
Columbia, SC, 29202-3144

Courier Service

Palmetto GBA
Attn: Cost Report Acceptance (AG-330)
2300 Springdale Drive, Bldg. One
Camden, SC 29020

For Checks and Correspondence Relating to Amounts Due on Cost Reports

U.S. Mail

Medicare Finance (AG-260)
Palmetto GBA, LLC
P.O. Box 100277
Columbia, SC 29202-0277

Courier Service

Medicare Finance (AG-260)
Palmetto GBA, LLC
2300 Springdale Drive, Building One
Camden, SC 29020-1728

NEW CGS MAILING ADDRESSES (Use after December 5, 2011):

Cost Reports

J15 — HHH Audit & Reimbursement
CGS Administrators, LLC
PO Box 20015
Nashville, TN 37202

Home Health and Hospice Claims/Adjustments

J15 — Part B/HHH Claims
CGS Administrators, LLC
PO Box 20019
Nashville, TN 37202

Provider Enrollment Correspondence

J15 — HHH Provider Enrollment
CGS Administrators, LLC
PO Box 20016
Nashville, TN 37202

General Correspondence
Additional Development Request (ADR)
Appeals
Medical Review
Written Reopenings
Credit Balance Reporting (no checks)
Freedom of Information (FOIA)

J15 — HHH Correspondence
CGS Administrators, LLC
PO Box 20014
Nashville, TN 37202

Due to the sold-out success of our first Home Health Agency Audit Seminar, we will be conducting a second seminar this December 14, 2009 to give those who weren’t able to get a seat a chance to get the most current news and information on Home Health Agency Audits from Earl Macasaet himself.

Seating is limited so sign up now!

The seminar will be held from 9:00am to 3:30pm on Monday, December 14, 2009 at Hilton Pasadena, located at 168 S. Los Robles Ave, Pasadena, CA 91101 (MAP).

This seminar will cover crucial topics on Home Health Agency Audits:

New Regulations Effective January 2010

Agency Survivability

• Tips & Resources to avoid Investigations & Decertification – Financial Aspect

Allowable and Non Allowable Expenses

Marketing

• Regulations & Rulings regarding referrals
• Risk areas for Home Health Agencies
• Medical Director Pay – Calculation of Safe Harbor
• Marketer Job Description & Pay
• Commission Payments
• Legal & Marketing Costs

HHA Financial Audit

• Current Issues
• Government Entities tasked with the Audits
• What documents do they ask for
• What are they looking for
• How to survive these audits
• Regulations & Rulings
• Press Release
• Discriminatory Billing Practices
• What is the impact of the figures in your
• Cost report with regards to your future
• reimbursement

Seats are limited and filling fast, sign up now to reserve yours!

For inquiries, please call Kevin or Claire at (909)305-0211 or email at seminar@ebmcpa.com. You may also download the registration form by CLICKING HERE and faxing the completed form to (909)394-0366.

Earl Benedict Macasaet will be conducting a seminar to give you the most current news and information on Home Health Agency Audits.

Seating is limited so sign up now!

The seminar will be held from 9:00am to 3:30pm on Wednesday, December 2, 2009 at Hilton Pasadena, located at 168 S. Los Robles Ave, Pasadena, CA 91101 (MAP).

This seminar will cover crucial topics on Home Health Agency Audits:

New Regulations Effective January 2010

Agency Survivability

• Tips & Resources to avoid Investigations & Decertification – Financial Aspect

Allowable and Non Allowable Expenses

Marketing

• Regulations & Rulings regarding referrals
• Risk areas for Home Health Agencies
• Medical Director Pay – Calculation of Safe Harbor
• Marketer Job Description & Pay
• Commission Payments
• Legal & Marketing Costs

HHA Financial Audit

• Current Issues
• Government Entities tasked with the Audits
• What documents do they ask for
• What are they looking for
• How to survive these audits
• Regulations & Rulings
• Press Release
• Discriminatory Billing Practices
• What is the impact of the figures in your
• Cost report with regards to your future
• reimbursement

Seats are limited and filling fast, sign up now to reserve yours!

For inquiries, please call Kevin or Claire at (909)305-0211 or email at seminar@ebmcpa.com.  You may also download the registration form by CLICKING HERE and faxing the completed form to (909)394-0366.

Financial management and strategic tax planning are two of the most important decisions you have to make for your business. At EBMCPA, we act only in your best interest to help you manage, safeguard, and grow your assets.

We offer year-round financial services while operating at the highest accounting standards. This commitment to quality and dedication to our clients have led to our exceptional reputation and the continued growth of our firm.

Find out more…

In addition to providing quality personalized services for individuals and families, EMBCPA, Inc. applies over a decade of experience as a key business partner for these industries:

• Medicare Certified Home Health Agencies
• Board & Care and Hospice Facilities
• Skilled Nursing Facilities
• Hospitals & Rehab Facilities
• Private Duty Nursing, and more

See the other industries we serve…

Call us and find out why over 400 businesses spanning six different states trust us with their Medicare Cost Reports, year after year.

We also specialize in:

• Audit/Appeal Representation and Consultation
• Enterprise Zone Tax Incentves
• Individual and Corporate Tax Returns
• Financial & Strategic Management Consulting

Call us now for free initial consultation!

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