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RULE §41.505Payroll Budgeting

(a) An employer or DR must, when developing a budget that includes payroll expenses for an employee:

  (1) budget to pay an employee who is a "personal attendant," as defined in 1 TAC §355.7051(a) (relating to Base Wage for a Personal Attendant), at least the base wage specified in 1 TAC §355.7051(c), (d)(2), or (f).

  (2) budget employee benefits, if chosen by the employer or DR:

    (A) as provided in:

      (i) this chapter;

      (ii) Section 1000, Wages and Benefits Plan, of the Consumer Directed Services Handbook available at http://www.dads.state.tx.us/handbooks/CDS/1000/index.htm; or

      (iii) Appendix XI, Allowable and Non-Allowable Expenditures, in the Consumer Directed Services Handbook available at http://www.dads.state.tx.us/handbooks/CDS/appendix/XI/index.htm;

    (B) that are in accordance with requirements of the individual's program:

      (i) an allowable cost, as defined in §41.103 of this chapter (relating to Definitions);

      (ii) reasonable, with regard to the cost of the service, good, or item; and

      (iii) necessary to meet employer responsibilities;

    (C) that are within the approved rate and spending limits established for the service;

    (D) that are accrued and paid based on actual hours worked; and

    (E) that may include any of the following:

      (i) increased wages;

      (ii) paid vacation;

      (iii) paid holiday;

      (iv) paid sick leave;

      (v) medical insurance;

      (vi) taxable work-related expenses;

      (vii) coverage of work-related injuries or illnesses for employees, including workers' compensation or options listed in "Liability Notice to Applicants for Employment," Section II, of Form 1728, Liability Acknowledgment;

      (viii) a hire-on bonus, paid when an employee is hired, and the amount budgeted for the bonus must be accrued from hours worked by the person within the first three months of employment;

      (ix) a bonus, based on the employee's job performance, that is budgeted and accrued from hours worked as a portion of the budget unit rate from hours worked by the employee, not to extend beyond the end date of the individual's service plan;

      (x) a bonus, based on the employee's length of employment, with the employer, if budgeted and accrued as a portion of the budget unit rate from hours worked by the employee, not to extend beyond the end date of the individual's service plan; and

      (xi) employer contributions for employee benefits;

  (3) make budget revisions if necessary to compensate for payment of overtime pay that must be calculated and paid in accordance with current state and federal labor laws and regulations.

(b) An employer or DR must:

  (1) complete, but not sign, Form 1730, Employee Wage and Benefits Plan, for each employee at the time of hire and when an employee's wages or benefits are being changed;

  (2) submit the form to the FMSA for approval;

  (3) obtain written approval from the FMSA; and

  (4) after FMSA approval, sign the form and obtain the employee's signature on Form 1730 on or before the employee's first day of work or the effective date of the change.

(c) An FMSA must:

  (1) review the employer's budgeted payroll spending decisions;

  (2) review Form 1730 for each employee at time of hire and as revised by the employer or DR;

  (3) verify that each applicable budget workbook and Form 1730 is within the approved budget;

  (4) notify the employer in writing of the approval or disapproval of Form 1730 and work with the employer or DR to resolve those issues that prevent the approval of Form 1730; and

  (5) comply with 1 TAC §355.7051(c), (d)(2), or (f) (relating to Base Wage for a Personal Attendant).

Source Note: The provisions of this §41.505 adopted to be effective January 1, 2007, 31 TexReg 10352; amended to be effective January 1, 2014, 38 TexReg 9630; amended to be effective September 1, 2015, 40 TexReg 5466; amended to be effective March 20, 2016, 41 TexReg 1925; amended to be effective May 10, 2020, 45 TexReg 2887

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