Payment Information FAQs
Clinic Workforce Stabilization Retention Payments (CWSRP)
1. How much is the retention payment?
For eligible employees, the payment amount is
up to $1,000.
Department of Health Care Services (DHCS) may reduce the payment amount on a
pro rata basis should the volume of requests exceed the funding allotted ($70 million).
2. Can qualified clinics use retention payments to supplant other payments to eligible employees?
No, qualified clinics cannot use retention payments to supplant other payments to eligible employee.
3. Will DHCS post information on the number or amount of payments made?
DHCS will post the following information on the CWSRP webpage: the amount each qualified clinic site received and the total number of eligible employees reported by each qualified clinic.
4. Will retention payments be factored into any reconciliation process or prospective payment system (PPS) rate calculation?
Retention payments will not be factored into any reconciliation process or PPS rate calculation to the extent permitted by law.
5. What should a qualified clinic do if an employee leaves before payments are distributed?
The qualified clinic should return the payment to Department of Health Care Services (DHCS) along with any other payments not distributed by the qualified clinic within 60 days of receipt of funds from DHCS. Procedures for returning funds not distributed to employees will be posted in the coming weeks.
6. Are Clinic Workforce Stabilization Retention Payments taxable? (updated 06/16/2023)
Clinic
Workforce Stabilization Retention Payments are taxable to the employee. The
Department of Health Care Access and Information (HCAI), in consultation with
appropriate stakeholders, released guidance on how to report these
payments. Employees and employers are also encouraged to consult
a tax professional or tax attorney with questions about the tax treatment of employee
retention payments.
7. Employees
are not eligible to receive both retention payments (i.e., Hospital and Skilled
Nursing Facility COVID-19 Worker Retention Payments and Clinic
Workforce Stabilization Retention Payments). How will duplicate employees be
identified by DHCS?
DHCS will, to the best of its ability, identify
if more than one payment is requested for a single employee and remove any
requests for duplicate payment.
8. When
will our organization receive the funds requested?
It is anticipated that funds will be sent to qualified clinics for employee distribution in April 2023. Clinics must distribute payments to employees within 60 days of receipt.
9. Does DHCS require me, an approved employer who received funds, to payout
employees in a specific way (e.g., checks, direct deposit)? (new as of 4/27/2023)
DHCS does not have requirements or restrictions on how the retention
payments should be distributed to employees.
10. Will DHCS be providing qualified clinics with 1099s? (new as of 4/27/2023)
Yes. DHCS will issue a 1099 reflecting retention payment amounts distributed to all qualified clinics in January 2024.
11. Do employers who received
funds need to send payments to terminated employees? (new as of 4/27/2023)
Only individuals employed on the date of payment are eligible for a retention payment. If the employee is terminated before the date of payment, they are no longer eligible to receive the retention payment. Retention payment received for that employee should be returned to DHCS immediately.
