What is a FMSA?
Financial Management Service Agencies (FMSA) are vendors that provide fiscal/employer agents for people who hire their own employees for certain services, also called CDS employers. FMSAs provide payroll services as well as deposit and report withholding taxes on behalf CDS employers. FMSAs also assume tax liability for proper withholding of federal income taxes and federal unemployment tax in accordance with Section 3504 of the Internal Revenue Code. In addition, they must comply with state laws and regulations of the Texas Workforce Commission regarding payment of state unemployment taxes.
If you select to participate in the CDS option:
You must select a financial management services agency (FMSA)
The FMSA assist LAR and individuals with the following:
- Provide training to the family
- Paying the service providers,
- Paying federal and state taxes
- Conduction criminal history checks.
- Complying with Texas Health and Human Services Commission CDS and program rules
To enroll in the Consumer Directed Services option, please choose a Financial Management Services Agency (FMSA).