We’re sharing two important updates for 2021.
IRS Medical Mileage Rate Increase
The IRS Medical Mileage Rate has increased from 17 cents to 18 cents per mile. This rate is used by the IRS to establish the deductible cost of using an automobile for medical travel.
Help Hope Live will be honoring this newly increased rate for medical travel occurring on or after January 1, 2021.
Download 2021 Fund Request Forms
You can download our Fund Request Form with the updated mileage rate from your Dashboard or using the buttons below:
Change in Fund Disbursement Guidelines for Caregivers
To protect our clients and their caregivers from potential tax-compliance issues, we have changed how we cover caregiver expenses.
Effective January 1, 2021:
Direct payments will no longer be made by Help Hope Live to caregivers. Help Hope Live will reimburse the client for the full cost of their caregiving expenses or pay a third-party provider (such as a caregiver agency) directly.
Regulations on home health care vary by state and jurisdiction.
Because Help Hope Live cannot offer tax advice, we recommend that all clients consult with a payroll processing company, an accountant, or a lawyer to assist with tax classification and reporting for caregivers.
Why the Change?
When a client hires a caregiver directly instead of through an agency, they must screen the caregiver, set their hourly fee, and determine whether they are an employee or independent contractor for tax purposes. This classification affects how the federal income tax, Social Security, and Medicare taxes are paid, and how caregivers file their tax returns. In addition, the classification affects the caregiver’s eligibility for employer Social Security contributions and Medicare benefits.
For these reasons, we want to ensure that our Guidelines and our processes for caregiver payment are accurate, compliant, and complete.
Download 2021 Fund Disbursement Guidelines
You can view the updated Fund Disbursement Guidelines via your Dashboard or download them here:
Ringing In the New!
Our team wishes you a happy, healthy, and safe 2021. Be sure to connect with your Client Services Coordinator if you’d like personalized assistance with all your 2021 fundraising needs.Written by Emily Progin