The Home Care Worker Parity Living Wage Law brought about sweeping reforms for the home health care industry. Now, surprising guidance released in May, 2014 has shaken many assumptions about overtime pay and additional wages. Is your company in compliance with the new guidance? BDB Payroll Services provides you with a step-by-step update on these challenging developments: ~ Overtime and Wage Parity: The Good, the Bad and the Ugly ~ Surprise! New Revelations about Additional Wage ~ Use it or Lose it Rule ~ Coordination with NYC Paid Sick Leave Law ~ Self-Insured Plans Redux: Are They Compliant? ~ QIVAPP update ~ BDB Solutions for Healthcare Businesses Slides were presented at a Special Webinar for BDB's clients who operate in the healthcare industry and BDB's affiliate CPA's.

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Presented by: Yonina Shineweather CPA yshineweather@bdbpayroll.com
Zishe Glauber zisheg@bdbpayroll.com
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07/23/2014
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NY Wage Parity Revisited:
How Surprising New Developments Impact Your Business

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Part I:
The Old and
The News
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Public Health Law § 3614-c Home Care
Worker Wage Parity.
Beginning March 1, 2012, established a minimum wage for home care
aides who perform Medicaid reimbursed work for certified home health
agencies (CHHAs), long term home health care programs (LTHHCPs)
and managed care organizations (MCOs) within New York City and
within the counties of Nassau, Suffolk and Westchester.
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What Qualifies as Supplemental Wage?
• Health
• Pension
• Dental
• Vision
• Medical FSA
• Life insurance
• Extended disability
• Critical injury
• PTO
• Transit checks (DOH silence…)
• Child care benefits
• Education (voluntary, for employees, not work related…)
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What qualifies as Additional Wage?
• Not overtime
• Vacation
• Sick
• Holiday
• Personal
• Shift or assignment differential/premium
• 28 PTO days per year
• Accruals to meet NYC Sick Pay Law
• AND THE NEWS….
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SURPRISE!
NEW REVELATIONS
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ABOUT ADDITIONAL WAGE…

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ADDITIONAL WAGES
CAN BE SUPPLEMENTAL WAGES!
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(1199 United Healthcare Workers was right)

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ADVANTAGES
• TAX BENEFITS
• ACA BENEFITS
($1.69 + $2.40) x 40 HOURS = $163.60 / WEEK
$708.93 / MONTH
• CREATIVE BENEFIT ARRANGEMENTS POSSIBLE
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DISADVANTAGES
• EXISTING PTO MAY SATISFY REQUIREMENTS
• DIFFERENTIALS: AVERAGE OVER WORKFORCE
• EMPLOYER GAINS FROM USE IT OR LOSE IT
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Is Your Package as Good or Better?
• Annual leave: accrued at one hour for every 26 worked (up to 2.3 hours per week and 10 days or 120 hours
per year)
• Sick leave: accrued at one hour for every 26 worked (up to 2.3 hours per week and 10 days or 120 hours
per year)
• Personal day: accrued at one hour for every 250 worked (up to 8 hours per year)
• Holidays: New Year’s Day, Martin Luther King Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Christmas Day
• Paid time off: when they fall on days that the employees are scheduled to work
• Premium pay: 1.5 times the base, when employees work on any of five holidays designated by the
employer for premium pay
• Live-in work: an extra $16.95 per day, or $1.4125 per hour
• Weekend work: an extra $1.10 per hour
• Multiple clients: an extra $0.50 per hour
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Weighted Average of Differentials Allowed
Total wage differentials paid to covered workers
divided by
total hours worked by covered workers
>= $1.69
If < $1.69, use PTO accruals to supplement
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USE IT OR LOSE IT RULE
• Employers can “limit” roll-overs
• No guidance on limits of “limit”
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Coordination with NYC Paid Sick Leave Law
• NYC sick accruals count as Additional
• Valued at $0.33 toward the $1.69
• 1/30 x $10 = $0.33
• If rate is > $10.00, accrual is worth more
Example:
Employee rate = $11
Accrual is worth $0.37 toward the $1.69
1/30 x $11 = $0.37
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Overtime:
The Good, the Bad
and the Ugly
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The Way it Was…
1. No DOH guidance, even to NYSAHCP
2. PHI position: no wage parity for OT: $12.00
3. Some: Pay regular time wage parity: $14.09
4. Some: Pay OT + sup. + addit: $16.09
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The Good
May, 2014 FAQs provide guidance
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The Bad
Wage Parity is required for all hours
Including OT hours
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The Ugly
Wage Parity is required for all hours
Including OT hours
IN ADDITION TO OT PREMIUMS!
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The Way It Is…
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NYC Counties
OT Rate
(1.5 x $8)
= $12.00 $12.00
Suppleme-
ntal Wage
= $2.40 $1.43
Additional
Wage
= $1.69
Total Rate = $16.09 $13.53

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The Way It Will Be…
1/1/15
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NYC Counties
OT Rate
(1.5 x $10,
9.50)
= $15 $14.25
Suppleme-
ntal Wage
= $2.40 $1.43
Additional
Wage
= $1.69
Total Rate = $19.09 $15.68

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The Way It Could Be…
• OT audits retro to 3/1/12
• Legal challenges
• Seek legal counsel
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QIVAPP UPDATE
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Q uality
I ncentive
V ital
A ccess
P rovider
P ool

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REQUIREMENTS
• Maintain/participate in aides’ specialty training
- beyond DOH minimum
• Implemented written QA program
• Participate in health benefits fund OR
• Provide comprehensive health benefits
http://www.health.ny.gov/health_care/medicaid/redesign/docs/2014-06-13-_benefits_overview_qivapp_application_attach2.pdf
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WHAT’S AVAILABLE?
1. Pool of $70 million
2. $0.30-1.00 per hour additional reimbursement
3. For NYC service hours only
4. To come between now and 3/31/15
5. For service through 12/31/14
6. No funds yet: MLTC surveys ended last week
7. Applications due by 8/1/14
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Self-Insured Plans Redux:
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Are They Compliant?
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IT DEPENDS…
• Actual contribution required
• Trust
• Escrow
• Not book entry
• No retro reduction of contribution below parity
• Beware of refunds/dividends from unclaimed funds
• Some indirect arrangements meet wage parity
• Know your broker
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Part II:
BDB’s Exclusive Wage Parity Solutions
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Introduction: PayStreamTM
• In-house developed and proprietary
• Fully customizable based on client need
• Web and remote apps – anywhere, anytime
• Advanced, rigorous data security
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1. Retroactive Overtime Calculations
2. Automatic Wage Parity Calculations
3. Automatic OT Calculations
4. Automatic Min Wage Calculations
5. Benefit Plan Data Transmission
6. HHA Software Integration
7. Education and Research Resource
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Retroactive Overtime Calculations
* Date of service (charge date) controls
* Late timesheets won’t disturb compliance
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BDB Exclusive Feature 1:
Magda Johnson submits a timesheet for period ending 3/14/14 showing 39
hours worked. On 5/2/14, she remembers to report an additional home
visit on 3/12/14 of 5 hours. BDB will automatically divide the 5 hours into 1
hour regular pay (40 - 39 previously reported hours) and 4 hours overtime
pay and include the additional amount with her current paycheck.
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Automatic wage parity calculations
I. Track wage parity liabilities employee by employee
for every hour worked based on service
• a) type
• b) location
• c) date
II. No manual calculations or spreadsheet tracking
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Automatic wage parity calculations
BDB Exclusive Feature 2:
James Brook reports hours and rates for the period ended 5/9/14
as follows. Note that although James is reporting 2013 service
dates in 2014, BDB uses the wage parity rates and rules in effect
for 2013 for calculating liabilities for those dates. Thus, for the
12/14/13 service date in NYC, no additional wage liability is
computed and supplemental wage computations use the 2013
rates.
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Automatic wage parity calculations
BDB Exclusive Feature 2:
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*** With BDB’s complete flexibility, you can choose to apply amounts in excess of base wage to supplemental wage before
additional wage. This chart shows the default setting of applying to additional wage before supplemental wage.
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DOS$ Loca)on$ Type$of$
service$
James’s$
Hourly$
Rate$
BDB$reports$addi)onal$
wage$liability$per$hour$
BDB$reports$supplemental$
wage$liability$per$hour$
5/5/14$ NYC$ Medicaid$$ $10.00$ $1.69$ $2.40$
5/6/14$ NYC$ Private$$ $10.00$ 0$ 0$
5/7/14$ Suffolk$$ Medicaid$ $10.00$ 0$ $0.93$
12/14/13$ NYC$ Medicaid$ $10.00$ 0$ $0.93$
5/8/14$ Nassau$$ Medicaid$ $12.00$ 0$ 0$
5/9/14$ NYC$ Medicaid$ $11.00$ $0.69$ $2.40$$$$***$
12/20/13$ Westchester$$ Medicaid$ $10.00$ 0$ $0.35$
$$ $$ $$ $$ $$ $$

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Automatic wage parity calculations
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When wage parity rates change mid pay-period, BDB
tracks hour by hour and saves you money, instead of
lumping all hours together at the higher rates in effect
at period end.
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BDB Exclusive Feature 3:
The Helpers, a LHCSA, has a payroll period that ends on Wednesday.
For the week ended March 5, 2014, Henry Gluck reports hours as
follows. Henry’s default rate is set to wage parity settings.

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Automatic wage parity calculations
BDB Exclusive Feature 3:
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DOS$ Loca)on$ Type$of$
service$
Henry’s$
Hourly$
Rate$
BDB$reports$addi)onal$
wage$liability$per$hour$
BDB$reports$supplemental$
wage$liability$per$hour$
2/27/14$ NYC$ Medicaid$ $9.50$ 0$$ $1.43$
2/28/14$ Nassau$ Medicaid$ $9.00$ 0$ $1.35$
3/3/14$ NYC$ Medicaid$ $10.00$ $1.69$ $2.40$
3/4/14$ Nassau$ Medicaid$ $9.50$ 0$ $1.43$
3/5/14$ NYC$ Medicaid$ $10.00$ $1.69$ $2.40$

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Automatic Overtime Calculations
• Some popular time and attendance packages
export only total hours
• BDB allocates hours appropriately between
regular and overtime pay based on state wage
and hour laws.
• If you have double time or premium rules, BDB
calculates pay accordingly on an employee-by-
employee basis.
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Automatic Overtime Calculations
BDB Exclusive Feature 4
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Nelson Baker is a home health care worker. In New York. Your T&A software exports 45 hours for
him for a workweek. BDB will automatically pay 40 hours at Nelson’s regular rate and 5 hours at
his OT rate.
!
Deloris Caller is a live-in companion in New York. Your T&A software exports 45 hours for her for a
workweek. BDB will automatically pay 44 hours at Deloris’s regular rate and 1 hours at her OT rate.
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Eleanor Davis is paid double time for hours in excess of 45. Your T&A software exports 47 hours
for her for a workweek. BDB will automatically pay 40 hours at Eleanor’s regular rate, 5 hours at
her OT rate and 2 hours at her double time rate.
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Automatic Minimum Wage Calculations
• Date of service controls
• BDB uses minimum rates in effect for old service dates reported late
• BDB checks state of each service for required minimum wage
• Overtime will also be based on rates in effect on date of service
• No manual calculations or spreadsheet tracking
• BDB will override incorrect T&A package settings that may use higher, current
rates for old service dates
• You can set employee minimum rates with effective starting dates, to ensure
compliance with changing wage parity rates.
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Benefit Plan data transmission
BDB transmits supplemental liabilities directly to
a) Insurance companies
b) Debit card programs
c) Transit card programs
d) All other benefit programs
each payroll, or monthly using each provider’s
specifications and saving you time and effort.
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Benefit Plan data transmission
BDB transmits census reporting for employee file
changes as most insurance providers require.
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HHA Software Integration
• BDB integrates seamlessly with leading HHA software packages
• Ability to import:
• hours worked
• client names
• type of service
• date of services
• any other data items your software captures
All imported items can also be included on employee pay stubs for
ease of reference
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HHA Software Integration
BDB’s great relationships with HHA software
vendors eliminate “finger pointing” and
ensure speedy, painless issue identification
and resolution.
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Education and Research Resource
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BDB’s team of payroll specialist CPAs and
CPPs are standing ready to help you solve
your toughest wage parity issues.
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CPE Credit
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• Certificate of Course Completion will be emailed
to registered address
• To request alternate address, email
samt@bdbpayroll.com
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Thank You!
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