Round Two of Health Care Worker Bonuses Coming Soon Members who are Medicaid providers should see funding for the second round of Health Care Worker Bonuses (HWB) in Medicaid payment cycle 2366, which is scheduled for release on Jan.11 th, These payments are tied to the second claim submission period that started Oct.1 st and ended Nov.30 th,
They represent payments for the second vesting period (April 1 st through Sept.30, 2022) but will also reflect any payments from the first vesting period for providers who used the one-time “grace period” flexibility to submit claims from the first vesting period during the October to November claim submission window.
The Frequently Asked Questions (FAQ) document on the has been updated to reflect this and seems to suggest that all employer participants of the HWB should expect payments. However, some members are uncertain of their claims status based on the indicators in their portal.
- Medicaid providers seeking to verify whether they are scheduled to receive the funding can call ahead for their Medicaid check amount (866-307-5549).
- The HWB webpage also indicates that non-Medicaid providers receiving bonus payments through the Statewide Financial System (SFS) should expect to receive the funding on Jan.11 th as well.
As before, the Medicaid remit statement should identify bonus payment dollars under code “HWB” and reimbursement of employer Federal Insurance Contributions Act (FICA) taxes as “FTX.” No further information is available yet regarding the special claim submission period related to the expansion of the program to include additional titles and eligible provider types.
What is the second round of healthcare bonus in NY?
STATEN ISLAND, N.Y. – The New York State Department of Health’s Health Care and Mental Hygiene Worker Bonus (HWB) program is well underway with its second round of payments to eligible healthcare workers expected to arrive any day now. The state launched the HWB program in August 2022 as a thank you to frontline health care workers for their tireless work during the pandemic and as an ” investment in health care,” Bonuses for employees are being determined by specific “vesting periods,” or hours worked during a consecutive six-month period between Oct.1, 2021, through March 31, 2024.
So far there have been two submission periods for employers to file claims for their eligible employees to receive up to $3,000 in bonuses. According to a spokesperson for the Health Department, all of the first vesting period bonuses, for which claims were submitted between Aug.3 and Sept.2 last year, have been released.
Employers have up to 30 days to distribute bonuses to their eligible employees. The submission period for the second vesting period was extended to include an additional month in November to allow employers more time to file claims. According to the Health Department’s website, payments for the second period were scheduled to be released beginning Jan.11.
- The agency recommends employers contact the Health Department directly with any questions about claims and payments.
- ABOUT THE HWB PROGRAM The $1.3 billion HWB program, enacted in the state’s fiscal year 2023 budget, will provide eligible workers who have annual base salaries less than $125,000, and will remain in their positions for at least six months.
Employers eligible for HWB program funding include providers participating in Medicaid with at least one employee, and other providers, facilities, pharmacies and school-based health centers licensed under the state Public Health Law, Mental Hygiene Law, and Education Law, as well as certain programs funded by the Office of Mental Health, Office for the Aging, Office of Addiction Services and Supports, the Office for People With Developmental Disabilities, and the Office of Children and Family Services.
At least 20 hours, but no more than 30 hours per week are eligible for a bonus of $500. At least 30 hours, but no more than 35 hours per week are eligible for a bonus of $1,000. At least 35 hours per week are eligible for a bonus of $1,500.
Eligible employees can receive up to $3,000 total over two vesting periods. Employees are ineligible if they have ever been suspended or excluded from the Medicaid program. Employers must enroll qualified employees in the HWB program, by creating an account in the online portal, and award the funds no later than 30 days after a worker’s eligibility for a bonus has vested.
- Employers must be either currently enrolled and maintain an active MMIS ID with eMedNY or employers who do not have an MMIS ID, meaning they are not enrolled in the NYS Medicaid system, will need to verify they have a Statewide Financial System (SFS) ID.
- Eligible employers without eMedNY can enroll at www.emedny.org,
More information about the program can be found on the Health Department’s website or the HWB portal at https://www.nysworkerbonus.com, In addition to the website, more information about the HWB program can be found by calling the HWB Call Center at 1-866-682-0077.
Are bonuses taxed differently than salary in New York?
What is the aggregate method for bonuses? – The aggregate method is used if your bonus is on the same check as your regular paycheck. Your employer will withhold tax from your bonus plus your regular earnings according to your W-4 answers. Your bonus will be taxed the same as your regular pay, including income taxes, Medicare, and Social Security.
How much does NYS tax bonuses?
The Aggregate Method – The aggregate method is more complicated. You’re required to use it if you haven’t withheld taxes from the employee’s pay before. This might be the case if your employee claims a high level of adjustments or an exemption from income tax withholding on their W-4. Here are the steps involved.
- Identify the employee’s regular wages.
- Add the bonus amount to their regular wages and calculate the tax withholding on the combined amount based on their W-4 (or the withholding tables included in IRS Publication 15-T ).
- Determine the federal income tax withholding on the combined amount.
- Identify the amount withheld from wages in the most recent pay period that had only regular wages.
- Subtract the withholding identified on the employee’s last regular paycheck from the combined withholding amount and withhold the result from the employee’s bonus.
For example, say you’re giving your employee a $1,000 bonus along with their $2,000 of regular wages. According to the IRS tables, you should withhold $359 from their pay. On the employee’s last paycheck, which didn’t include any supplemental wages, you withheld $166.
- On this paycheck, you should withhold $193 ($359 – $166) from the bonus, along with $166 of normal withholding from their regular salary.
- This method often results in over-withholding for the employee because the tables assume that the employee is paid the higher amount every pay period.
- However, this can be a good thing for bonuses paid to highly compensated employees who are likely to pay tax at the highest income tax brackets.
If all of this seems a bit too complicated, just remember that you need to withhold 37 percent on any supplemental wages over $1 million and 22 percent on supplemental wages under $1 million. Also, a full-service payroll provider like Hourly can help you run a bonus payroll and automatically withhold the right amount of tax.
- Social Security and Medicare taxes : Collectively known as FICA tax, you need to withhold these taxes from the employee’s bonus check at the normal rate. For 2023, that’s 6.2 percent of the first $160,200 of earnings for Social Security and 1.45 percent of earnings (with no cap) for Medicare. For any earnings over $200,000 for single filers ($250,000 for joint filers), you have to withhold 0.9 percent for the Additional Medicare Tax.
- Any applicable state or local taxes : If your employees work in an area with state and/or local income taxes, you will need to withhold the applicable state and local taxes on their bonus check. Some states have a special supplemental withholding rate, and some allow employers to withhold taxes on bonuses at the same rate as regular pay. For example, for 2023, New York requires employers to withhold 11.70 percent from supplemental pay, and New York City’s bonus tax rate is 4.25 percent. You can check with your state’s revenue department to find out if your state has a special bonus tax rate.
- Federal and state unemployment taxes : Bonuses and other supplemental wages are also subject to federal unemployment ( FUTA ) and state unemployment (SUTA) taxes at the same rate used for other compensation.
Can I quit after getting my bonus?
Unless otherwise stipulated in your offer letter or employment agreement that your bonus will be prorated upon voluntary departure, your employer is likely not bound to pay you any of your bonus if you leave early.
Who to contact for NYS healthcare worker bonus?
Contact Information The Health Care Worker Bonus Program is being administered by DOH. Information and questions regarding the program and/or eligibility should be directed to the NYS Department of Health at [email protected] or by calling the HWB Call Center at (866) 682-0077.
How long does it take to set up health benefits?
Step 4: Cards and Coverage – Once you’ve enrolled and made your first payment it can take about 3 weeks, for your application to be processed. If you applied for major medical health insurance and your enrollment was received in the first fifteen days of the month, your coverage will typically begin on the first day of the following month.
The Date of Application Impacts Enrollment Dates If your application and payment for a major medical (Obamacare plan) is received on the 16 th day of the month or later, your coverage will generally begin on the first day of the month after next. You will receive your insurance cards and a welcome package in the mail along with a copy of your insurance policy after you’ve been approved.
Enrollment Dates for Flexible Products (Short-Term Medical, Medical Insurance Packages) For these flexible insurance products, which are designed to function as affordable alternatives to major medical (Obamacare plans), enrollment dates may vary, based on the insurance company and the date in which you apply.