Independent Business Screening for SDP Vendors (ABC Questions)

FMS Pay pays vendors under the Self-Determination Program's Bill-Payer model. This model is for paying independent businesses. It is not set up for hiring employees.

The Department of Developmental Services (DDS) requires FMS Pay to check that each vendor runs an independent business before we pay them (DDS SDP FMS Vendor Standard 10.1). We do this with a short set of questions in our vendor intake packet and annual re-certification. This article explains what we ask and what happens next.

Who answers these questions?

You will see the questions if you are one person working for yourself. That includes:

• Sole proprietors
• Single-member LLCs
• Anyone using their Social Security number (SSN) on their W-9

Corporations, partnerships, multi-member LLCs and agencies do not see these questions.

Why we ask

California uses a test called the ABC test to tell the difference between an independent business and an employee. In plain terms, it asks:

• A. Are you in charge of how you do your work?
• B. Is the work outside the usual business of the person paying you?
• C. Do you run your own independent business that serves others?

Our questions help us confirm that your setup fits the Bill-Payer model.

What we ask

You will answer Yes or No to these statements:

1. I decide how my services are performed (methods and approach).
2. I set my own schedule and book appointments; the participant does not set fixed hours for me.
3. I charge my own standard rate, and no minimum hours or amount of work are guaranteed.
4. I use my own tools, supplies and transportation (or none are needed).
5. I offer this service to the public and have had other clients in the past 12 months.
6. I have been paid as an employee (W-2) for these same services to this participant before, through IHSS, an agency or another FMS.

We also ask:

• About how much of your business income comes from this participant
• Whether you help make SDP decisions for the participant (for example, as their authorized representative, conservator, parent or guardian, or Independent Facilitator)
• Whether you, or anyone in your household, are paid for any other service to this participant

If some answers need more detail, the form will ask you to briefly explain.

Please answer based on how you actually work. Your answers are part of a signed packet, and you certify that they are true.

What happens after you submit

An FMS Pay team member reviews your whole packet. One answer does not automatically approve or deny it. After review, one of these will happen:

• Approved. We let you and the participant know when you can start.
• We follow up. We may ask a question or request a document, such as proof of your business.
• Doesn't fit the Bill-Payer model. We email you and the participant with other options (see below).

If you help make decisions for the participant, or someone in your household is paid for another service to them, DDS requires us to let the participant's regional center know. The regional center decides whether the arrangement is appropriate.

If your setup doesn't fit the Bill-Payer model

This is not a judgment about your skills or the quality of your services. It means your setup needs a different arrangement in SDP. Common options:

• Work through an agency. Some agencies work with individual providers who serve SDP participants. The agency becomes the vendor, and FMS Pay pays the agency.
• The participant uses an employer-model FMS. If the participant wants to hire you directly, they can use an FMS that offers the Sole Employer or Co-Employer model. Their Independent Facilitator or regional center service coordinator can help.

If you believe an answer was entered by mistake, reply to our email and explain in writing. We are happy to take another look.

Frequently asked questions

I'm just starting my business. Can I still be approved?

Yes. New businesses can qualify. We look at the whole picture, including whether you are set up as a business, for example with a business license or fictitious business name (DBA) filing, a website or listing, an EIN, and plans to serve other clients.

Is FMS Pay my employer?

No. FMS Pay processes payments on the participant's behalf. We do not hire, schedule, supervise or set rates for vendors, and we do not pay wages or benefits.

Do I need business insurance?

FMS Pay does not require insurance. Our requirements follow the SDP waiver: a business license if your city or county requires one, a professional license or certification if your service needs one, and proof you are qualified. See our Vendor Qualifications article.

Can you tell me whether I'm an employee or an independent contractor?

No. FMS Pay cannot give legal, tax or employment advice. Our review only confirms whether your setup fits the Bill-Payer model. For advice about your own situation, please talk to a tax professional or attorney.

What if my situation changes?

Please tell us at connect@fmspay.com within 10 days if your business or your arrangement with the participant changes. We also review these answers each year during annual re-certification.

Questions?

Email connect@fmspay.com or join our weekly support and office hours.