This is the policy that the legal and Executive team agreed to.
On Tue, Dec 20, 2022 at 10:30 AM Timothy Thomas <tt@thekey.com> wrote:
> Hi Angie,
>
> In the past, certain clients have given caregivers cash bonuses and
> informed us of this / asked permission with specified amounts. Is this no
> longer accepted? I doubt all clients will accept a 50-60% markup in Canada
> to account for fees and income tax.
>
> On Mon, Dec 19, 2022 at 2:22 PM Julia Watthey <julia.watthey@thekey.com>
> wrote:
>
>> *ANNOUNCEMENT:* BILLABLE CAREGIVER BONUS
>>
>>
>>
>> During the holiday season, many clients request that we build in a Bonus
>> to their Caregiver’s end-of-year paycheck. Our Billing and Payroll
>> Departments are pleased to facilitate these requests. The following steps
>> should be taken:
>>
>>
>>
>> -
>>
>> Clarify with the client that their Caregiver will receive a Bonus
>> ($50 for example).
>> -
>>
>> There is a tax that must be paid on all Bonuses.
>> -
>>
>> To ensure the tax is paid, we “gross up” the amount charged to
>> the client to cover income taxes that the Caregiver will owe as a result of
>> receiving a Bonus.
>> -
>>
>> “Grossing up” ensures that Caregivers receive their full
>> Bonus as requested by the client after taxes.
>> -
>>
>> “Grossing up” means the client pays the tax on the Bonus.
>> -
>>
>> Let the client know that the “Gross Bonus Amount” ($50 for example)
>> plus a 20% service charge will be added to their regular bill.
>> -
>>
>> The 20% is a processing service fee for adding the Bonus to the
>> Caregiver’s paycheck.
>> -
>>
>> Email your Payroll Specialist to let them know the Caregiver’s name,
>> Bonus amount, and confirm if the client will “gross up,” (pay the tax) on
>> the Bonus for the Caregiver.
>> -
>>
>> If we don’t hear from the client about whether they will “gross
>> up,” then we will charge the client the “gross up” amount to cover the tax
>> amount and the Caregiver receives the full Bonus.
>> -
>>
>> If the client does not wish to “gross up,” on the Bonus amount,
>> then the Caregiver receives their Bonus minus the tax on the Bonus. In this
>> case, the Caregiver would receive less than their full Bonus.
>> -
>>
>> Please be sure to add an expense in ClearCare of 120% of the gross
>> Caregiver Bonus amount (for billing purposes).
>>
>>
>>
>> For a Bonus to be paid to a Caregiver by 12/23, payroll specialists will
>> need to receive an email from you no later than 12/19. Information received
>> after that time will be on the following pay period.
>>
>>
>>
>> For questions, please contact your Payroll Specialist and/or the Billing
>> Helpdesk and Gary Scott, Senior Director of Finance Operations, at
>> billing@thekey.com.
>>
>>
>>
>> It’s a pleasure to support our clients in showing their appreciation and
>> support of their Caregivers. Thank you for your role in this process and
>> for doing your best to serve our clients well.
>>
>>
>>
>> Happy Holidays!
>>
>>
>> --
>>
>> Best Regards,
>> Julia Natasha Watthey, MBA
>> Director, Corporate Communications
>> TheKey
>>
>> www.thekey.com
>> ---
>>
>>
>
> --
> Tim Thomas
> Head of Canada Division
> *Please note my email has changed:*
> tt@TheKey.com <Tim.Thomas@TheKey.com>
> (514) 591-9387
> TheKey.com <https://www.thekey.com/>
> [image: TheKey] <https://www.thekey.com/>
>