A fiscal intermediary manages funds, makes payments, and
accounts for expenditures made on behalf of the consumer as directed by the customer. The fiscal intermediary is not a direct service provider, but handles the business end of securing services and supports.
A fiscal intermediary must be able to provide payroll services, bill payments, benefit administration, contract negotiation, rate setting functions, and record keeping services. Without a fiscal intermediary, the individual or family could be affected by state and federal labor laws, be responsible for filing tax records, and have additional obligations with regard to the Social Security Administration.
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