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Consumer-Directed Services Fiscal Intermediary Agreement Consumer-Directed Services program that is provided by the Department of Aging. After several discussions with Pam Dubois over the life of this Pilot Project, we have concluded that our Finance Department is we~l equipped to provided the services that we have been searching for through a third party. Th\'l current payroll and tax withholding/processing system can provide these services to the CabaJjrus County Consumer-Directed Services clients without modification. The only difference with this program will be that the individuals that are being paid will technically be employees of our clients. The Cabarrus County Finance Department will serve as an agent representative on behalf of clients that are the employers of record of household employees through the Cabanus County Department of Aging Consumer-Directed Services program to meet employment tax responsibilities (withholding, processing and/or reporting) and provide payroll services (a$ specified in Section 3504 of the Internal Revenue Code). In order to process these personal att~ndant' s payroll and tax records, we will need to establish a budget location (00195760-9130).' We have discussed this situation with Don Cummings regarding the requirements that our Human Resources Department may have. Mr. Cummings has researched this situation and suggest~d, as did Mrs. Dubois that we contact consultants concerning the impact that this program will have on the County from a liability and/or Worker's Compensation prospective. Lengthy conversations with Mr. Everett Arnold with The Insurance Advisory Committee and Mr. Lany,Justice regarding liability related to Worker's Compensation resulted in our decision to move f~rward with our request for approval of this partnership with Cabanus County Finance Department. Both of these consultants recommend that as long as we have a written agreement between Cabarrus County and the Consumer-Directed Services client, and that we specify that the CablUTlils County Finance Department is serving as an agent representative for payroll purposes only of the client, and the Consumer-Directed Services client is the employer of record, not Cabanus County, we should have no problems administering this program. Under this structure, the personal attendants will not be entitled to Worker's Compensation benefits and the clients are not respon$ible for providing Worker's Compensation unless they employee at least three household employees. , The following excerpts from Part 1/1 - Administrative, Procedural, and Miscellaneous Proposed Revenue Procedure Regallding Home-Care Service Procedures Notice 2003-70 describes how the Internal Revenue CQde addresses the authorization for the Cabanus County Finance Department to serve as theicontracted agent for our Consumer-Directed Services clients: This notice contaitls a proposed revenue procedure giving updated guidance to state and local government Mencies on how they can serve as agents, under section 3504, for disabled individu~ls and other welfare recipients who employ home-care service providers to assist them in their homes ("service recipients"). Service recipients who are the common law e1nployers of these home-care service providers may designate an agent under section 3504 to meet certain Federal employment tax responsibilities on behalf of the employer, suc~ as withholding and reporting. The general procedures for designating an agent and repoJ1ing and filing as an agent are set forth in Rev. Proc. 70-6, 1970-1 C.B. 420. A state or lo~al government agency can be authorized to serve as a section 3504 agent for service r~cipients (a "state agent") enrolled in a program it administers. Special procedures for designating a state agent and for reporting and filing as a state agent are set forth in Rev. Proc. >80-4,1980-1 C.B. 581. G-3