Some IHSS consumers pay a Share of Cost (SOC), a co-pay for services. The consumer may have to pay that directly to you. If that happens, the Share of Cost amount is deducted from the check you receive from the State since the consumer is paying that part of your wages. When that happens, the State will send letters to you and the consumer telling you exactly how much Share of Cost was deducted. Wait until the letter arrives to know the exact amount the consumer must pay you he State mails the letters the next business day after your time sheet is input in the computer. The consumer pays you the Share of Cost amount shown.
You must claim ALL the hours worked on your time sheet, including the SOC hours. SOC hours are paid at the same rate as your other hours; however, the consumer will pay you at the net rate (hourly rate less withholdings), because IHSS withholds Social Security (FICA), Medicare and State Disability Insurance (SDI). The SOC hours are included in your gross earnings, and the deductions listed above are taken out of the whole amount you earned, SOC and non-SOC hours combined. If you have income tax withheld, it is also taken out of the whole amount
Find out the consumer’s correct IHSS Share of Cost to be sure you receive the correct amount. This is important because the SOC will be reported on your annual W-2 as part of your income, and you will be taxed on it, whether you received the money or not.
A few IHSS consumers receive payment in advance, so pay the care provider directly. Payment is at the net rate because IHSS withholds the payroll deductions. If this applies to you, you will be notified by Payroll.