W-2 and 1099 Reporting and Correction Procedures - Home Help Payments

Oct 22, 2026

Uploaded by Rizky

Guidelines explain how Home Help payments to individual caregivers and agency providers (AFC, HA, and APS) are treated as earned income and reported to the IRS. It covers W-2 issuance by MDHHS, mailing rules based on CHAMPS addresses, actions for non-receipt, and required W-2 corrections for inaccurate earnings or incorrect Social Security numbers, including verification steps and email instructions. It also outlines processes for returned W-2s, and when 1099s apply for earnings above $600, including non-receipt and correction handling via Provider Support Services.

LanguageEnglish

CategoryHealthcare

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

W-2 issuance and mailing

Address updates in CHAMPS

Non-receipt of W-2

W-2 corrections

Inaccurate earnings

Incorrect Social Security number

Process for returned W-2s

Forwarding address re-mailing

Follow-up and contact attempts

1099 non-receipt and corrections

1099 eligibility threshold

INTRODUCTION Payments issued to Home Help individual caregivers and agency providers, Adult Foster Care (AFC) and Home for the Aged (HA) providers , and Adult Protective Services (APS) providers are considered earned income and must be reported to the Internal Revenue Service (IRS) . The Michigan Department of Health and Human Services (MDHHS), on behalf of the client, issues a W-2 for all Home Help individual caregivers. W-2s are based on wages issued in a calendar year. W-2s are mailed to the individual caregiver's correspondence address listed in CHAMPS. If there is a change of address for the individual caregiver, they must update their correspondence address in CHAMPS. NON-RECEIPT OF W-2 If an individual caregiver reports non-receipt of their W-2, refer them to the Provider Support Services hotline at 1-800-979-4662. W-2 CORRECTIONS W-2 corrections are required when an individual caregiver reports inaccurate earnings on their W-2 or when earnings were attached to an incorrect Social Security number. Inaccurate Earnings If inaccurate earnings have been reported , an individual caregiver can report this fact to the adult services worker (ASW), or they can call the Provider Support Services hotline at 1-800-979-4662. If the individual caregiver reports the problem to the adult services worker, the ASW must complete the following steps: 1. Verify the individual caregiver's Home Help authorizations for the calendar year with both the client and the individual caregiver. 2. Email Accounts Payable at MDHHS-Medicaid-Payments[Unit@michigan.gov](Unit@michigan.gov) to request a W-2 correction. Type 'Home Help W-2 Correction' in the subject line of the e-mail and include the following information in the body of the email: • Individual caregiver's name and Social Security number. • Individual caregiver's current address. • Client's name and recipient ID number. • A summary describing the error and contact information for the individual caregiver. 3. Accounts Payable will determine the total amount of gross wages that were issued in the calendar year. Canceled warrants or funds that were recouped during the calendar year will not be included in the gross wages. If there is a dispute over total earnings, the adult services worker must order copies of the warrant(s) from the Michigan Department of Treasury to verify signatures. See ASM 160 , Warrants, on how to request the Treasury form 1363. Note: Accounts Payable may need to contact the ASW if it has been discovered that there was an overpayment or if fraud has been determined. The ASW will need to follow recoupment procedures and/or make a referral to the Office of Inspector General (OIG) for fraud. Incorrect Social Security Number If an incorrect Social Security number has been reported, the individual caregiver will need to call the Provider Support Services hotline at 1-800-979-4662. Provider Support Services will initiate a ticket to assist the individual caregiver with the required corrections. PROCESS FOR RETURNED W-2S Each year, W-2s are returned to MDHHS due to an incorrect address. MDHHS is required to follow-up with individual caregiverson returned W-2s using the following steps: 4. If a W-2 is returned with a forwarding address, Accounts Payable will re-mail the W-2 to the new address and include information instructing the individual caregiver to update their information in CHAMPS. 5. Provider Support Services will supply Accounts Payable with a list of individual caregivers who have already called to request a replacement W-2. 6. If there has been no contact with Provider Support Services , Accounts Payable will check in ASAP or CHAMPS to determine if the individual caregiver has received a payment in the current calendar year. If there is at least one payment issued in the current calendar year, the information will be put on a spreadsheet and sent to the adult services staff. 7. The Home Help Policy Section will

FAQs

How are Home Help payments handled for IRS reporting?

Payments to Home Help individual caregivers and certain agency providers are considered earned income and must be reported to the IRS. MDHHS issues W-2 forms to individual caregivers based on calendar-year wages.

What should an individual caregiver do if they do not receive a W-2?

Refer the caregiver to the Provider Support Services hotline at 1-800-979-4662 for assistance with non-receipt.

When are W-2 corrections required, and what triggers them?

Corrections are required when the caregiver reports inaccurate earnings on the W-2 or when earnings are tied to an incorrect Social Security number. The process includes authorization verification, requesting a W-2 correction via email, or initiating a hotline ticket for Social Security number corrections.

Oct 22, 2026

Uploaded by Rizky