Last Updated: Feb 27, 2020
Informational Notification: 2019 DUPLICATE W-2 REQUESTS AND W-2 INFORMATION
DATE: JANUARY 23, 2020
The 2019 calendar year W-2 forms are in process and will be mailed before January 31, 2020, to all providers who had earned and taxable income (definition below) in the 2019 calendar year. If a provider earned taxable income in the 2019 calendar year, the provider will receive a separate W-2 for each case for which taxable income was paid in the year. This notification describes the process to request duplicate W-2 forms and provides information to assist the counties in determining if a W-2 was issued or if the income was excluded from reporting and taxation.
Do not refer providers to the IHSS Service Desk for tax-related questions.
As stated in ACIN I-05-19, counties are responsible for answering IHSS program related inquiries regarding W-2, W-2 Correction, W-2 Duplicate, W-4, DE 4, FICA information and/or requests.
Requests for tax advice may be referred to the IRS or to a tax preparer.
RETURNED W-2 INFORMATION
There can be a large volume of W-2s returned as undeliverable in the latter part of January and into the months of February and March each year as a result of providers failing to report updated or changed mailing address information in a timely manner to the counties. The CMIPS Vendor forwards any returned W-2s to the appropriate county as quickly as possible in order for the county to locate the provider and forward the W-2 to the updated mailing address rather than requesting a duplicate W-2. It typically takes 3-4 weeks for undeliverable W-2s to run their course through the system and be returned to the appropriate county. Due to this, all 2019 duplicate W-2 requests received in the latter part of January and into the first three (3) full weeks of February 2020 will not be processed, but will be destroyed. Valid 2019 duplicate (reprint) W-2 requests will be accepted and processed effective Monday, February 24, 2020.
EARNED AND TAXABLE INCOME
Earned and Taxable Income means the provider received an IHSS payment in tax year 2019 and did not have an IRS Live-In Self-Certification Exclusion Form (SOC 2298) on file. Although a provider may have delivered services in 2019, earned and taxable income is defined by the date in which the warrant or warrants associated with a specific case were issued, NOT the date or dates service was provided.
Example: A provider delivered services for one case from October - December of 2019; however, provider did not submit the associated timesheet(s) until the end of December 2019. Although the provider delivered services in the 2019 calendar year, the warrant or warrants were not issued until January 2020. In this example, the provider is considered to not have earned taxable income in 2019 and will not receive a 2019 W-2.
LIVE IN PROVIDER WITH AN SOC 2298 IN CMIPS
With the IRS rules for Live-In Providers, providers who have an SOC 2298 in CMIPS and have a case relationship that is not Parent or Spouse, will receive a W-2 for income paid in 2019. The W-2 will not contain income or taxes reporting Federal or State wages (Box 1 and Box 16) on their W-2. The W-2 will report FICA, Medi-Care and State Disability Insurance (SDI) wages and taxes. Please Note: Wages are excluded upon the processing of the SOC 2298 in CMIPS. Wages paid prior to the entry of the SOC 2298 in CMIPS will report as earned and taxable income.
Live-In Providers designated on a case as a Parent or Spouse provider who have an SOC 2298 in CMIPS for all wages paid in 2019, will not receive a W-2 for the year. However, Live-In Providers designated on a case as a Parent or Spouse provider, have an SOC 2298 in CMIPS for all wages paid in 2019, and also filed an elective SDI form with their recipient’s county office to electively contribute to SDI, will receive a W-2 for Local wages only.
Information describing the IHSS/WPCS Live-In Provider Self-Certification is available at the CDSS Live-In Provider Self-Certification Information webpage.
HOW TO VERIFY A PROVIDER RECEIVED A W-2
If a provider contacts the county asking why they did not receive a 2019 W-2 for a specific case, it is the county’s responsibility to verify an original W-2 was actually generated. The county should first verify the provider received payments for the tax year, and, based upon the SOC 2298 information described earlier, should have received a W-2 for the tax year in question. The county may find W-2 information for the provider on the CMIPS View Case Provider screen for each case the provider is questioning. The ‘Financial’ section of the View Case Provider screen has a field titled ‘W-2 Issued’. The date in this field will determine if the provider had a W-2 created.
Scenario 1: Provider calls to inquire why a W-2 wasn’t received for tax year 2019. The CMIPS View Case Provider screen either displays a blank field or a prior year’s date in the W-2 Issued field. This means the provider did not have a W-2 issued for the current year W-2. The county should review the Live-In Provider information provided above to determine whether the provider falls under those categories.
* Please Note: A tax refund is NOT considered earned income. The county can identify a warrant as a tax refund under the Type column on the Payment Search Screen. A tax refund will always display $0 gross pay and 0 hours.
Scenario 2: Provider calls to inquire why a W-2 wasn’t received for tax year 2019. The CMIPS View Case Provider screen shows a date of 01/12/2020 which means a W-2 was issued to the provider for the current tax year (2019). See below for the steps to follow before requesting a duplicate W-2:
PROVIDER’S MAILING ADDRESS VERIFICATION
A W-2 (original, duplicate and/or amended) will always be mailed to the provider’s MAILING address identified in the CMIPS System at the time the W-2 is generated. Therefore:
Ø If the provider’s mailing address changed after the original W-2 was mailed, the county is required to update the mailing address in the Case Management System prior to submitting the CMIPS Duplicate W-2 Request Form.
Ø If the provider’s mailing address on the CMIPS Duplicate W-2 Request Form does not match the most current and up-to-date mailing address identified in the Case Management System, the form will be denied and returned to the initiating county.
COUNTY FORM COMPLETION REQUIREMENTS & PROCESS
It is very important the county conducts the following prior to submitting any and all 2019 duplicate (reprint) W-2 requests.
Verify the provider requesting the 2019 duplicate W-2 actually earned taxable income in the 2019 calendar year for the recipient case listed on the request form in question, and therefore, should have received a 2019 W-2 for that case.
(Please see the section of this notification entitled “Earned And Taxable Income” which defines earned taxable income.)
Verify the original 2019 W-2 is not in the possession of the county due to an undeliverable provider address.
a) If the original 2019 W-2 is in the possession of the county, the county should attempt to contact the provider in order to receive an updated mailing address and mail the original W-2 to the provider versus requesting a duplicate W-2.
b) If the original 2019 W-2 is not in the possession of the county, complete the Duplicate W-2 Request Form in its entirety and mail to the address identified on the form.
Compare the provider’s mailing address indicated on the form to the most up-to-date mailing address indicated in the Case Management System.
a) If the mailing address does not match, update the mailing address in the Case Management System prior to submitting the form.
b) If the mailing address does match and is correct, continue with submitting the form.
DUPLICATE W-2 PROCESSING
Duplicate W-2 requests are not accepted by way of an Extranet ticket. Any duplicate W-2 requests submitted by Extranet ticket will be rejected. Duplicate W-2 requests will only be accepted via hardcopy on the “CMIPS Duplicate W-2 Request Form (last revision date (01/09/19).”
While there isn’t a specific contractual time frame associated with the processing of duplicate W-2 requests; once a complete and accurate form is received by the IHSS Payroll Management Unit’s Back Office Department, the standard processing time frame for a duplicate W-2 request is twenty (20) business days from receipt of the form to the time in which the provider receives the duplicate W-2.
The county can follow the Duplicate W-2 reissued process by monitoring the View Case Provider screen ‘W-2 Reprinted’ field. Once the W-2 is reissued, a current date will display in this field.