Requirements related to member living allowances and benefits are in 45 CFR§§2522.240 and 2522.250. In addition, the following apply:
1. Living Allowance Distribution. A living allowance is not a wage. Programs must not pay a living allowance on an hourly basis. Programs should pay the living allowance in regular increments, such as weekly or bi-weekly, paying an increased increment only on the basis of increased living expenses such as food, housing, or transportation. Payments should not fluctuate based on the number of hours served in a particular time period, and must cease when a member concludes a term of service.
If a member serves 1700 hours but is permitted to conclude a term of service before the originally agreed upon date, the program may not provide a “lump sum” payment to the member. Similarly, if a member enrolls after the program’s start date, the program must provide regular living allowance payments from the member’s start date and may not increase the member’s living allowance incremental payment or provide a lump sum to “make up” any missed payments.
2. Waiving the Living Allowance. If a living allowance is paid, a member may waive all or part of the payment of a living allowance if he or she believes his or her public assistance may be lost or decreased because of the living allowance. Even if a member waives his or her right to receive the living allowance, it is possible—depending on the specific public assistance program rules—that the amount of the living allowance that the member is eligible to receive will be deemed available. A member who has waived the living allowance may revoke the waiver at any time and may begin receiving the living allowance prospective to the revocation date; the member may not receive any portion of the living allowance accrued during the waiver period.
3. Taxes and Insurance.
a. Liability Insurance. The grantee must have adequate general liability coverage for the organization, employees and members, including coverage of members engaged in on- and off-site project activities.
b. FICA (Social Security and Medicare taxes). Unless the grantee obtains a ruling from the Social Security Administration or the Internal Revenue Service that specifically exempts its AmeriCorps members from FICA requirements, the grantee must pay FICA for any member receiving a living allowance. The grantee also must withhold 7.65% from the member’s living allowance.
c. Income Taxes. The grantee must withhold Federal personal income taxes from member living allowances, requiring each member to complete a W-4 form at the beginning of the term of service and providing a W-2 form at the close of the tax year. The grantee must comply with any applicable state or local tax requirements.
d. Unemployment Insurance. The U.S. Department of Labor ruled on April 20, 1995 that federal unemployment compensation law does not require coverage for members because no employer-employee relationship exists. The grantee may not charge the cost of unemployment insurance taxes to the grant unless mandated by state law. Programs are responsible for determining the requirements of state law by consulting their State Commission, legal counsel or the applicable state agency. AmeriCorps*National and AmeriCorps*Tribes and Territories grantees must coordinate with their State Commissions to determine a consistent state treatment of unemployment insurance requirements.
4. Worker’s Compensation. Worker’s Compensation is an allowable cost to the grant. The grantee is responsible for determining whether state law requires the provision of worker’s compensation for members. If a program is not required by state law to provide worker’s compensation, the Program must obtain Occupational Accidental Death and Dismemberment insurance coverage for members to cover in-service injury or incidents.
5. Health Care Coverage. The grantee must provide a health care policy to those full-time members not otherwise covered by a health care policy at the time of enrollment into the AmeriCorps program, or to those members who lose coverage during their term of service as a result of participating in the Program or through no deliberate act of their own. The Corporation will not cover health care costs for family members or for less than full-time members.
a. Minimum Benefits. The health care policy must meet the following minimum benefits:
i. Physician services for illness or injury;
ii. Hospital room and board;
iii. Emergency room;
iv. X-ray and laboratory;
v. Prescription drugs;
vi. Limited mental/nervous disorders;
vii. Limited substance abuse coverage;
viii. An annual deductible of no more than $250 charges per member;
ix. No more than $1,000 total annual out-of-pocket per member;
x. A 20% co-pay or a comparable fixed fee with the exception of a 50% co-pay for mental and substance abuse care; and
xi. A maximum benefit of at least $50,000 per occurrence or cause.
b. Obtaining Health Care Coverage. You may obtain health care insurance for your members through any provider you choose, as long as the policy provides the minimum benefits and is not excessive in cost. If you use a health care policy that charges more than $150 per month to the Corporation you must send a copy of the policy along with a summary of its coverage and costs to the Corporation’s Office of Grants Management.
c. Half-Time Members. Although no portion of health insurance expenses for halftime members may be paid from Corporation funds, you may choose to provide health care to half-time members from other sources.
d. Less Than Full-Time Members serving in a Full-Time Capacity. Less than full-time members who are serving in a full-time capacity for a sustained period of time (such as a full-time summer project) may be eligible for health care benefits supported with Corporation funds.
6. Childcare. The grantee must ensure that childcare is made available to those full-time members who need such assistance in order to participate. Members are not eligible to receive childcare from AmeriCorps while they are receiving childcare subsidies from another source for the same period of AmeriCorps service. The criteria for member eligibility are contained in 45 CFR§2522.250.
7. Administration of Child Care Payments. In general, the Corporation will provide for childcare payments, which will be administered through the National Association of Child Care Resource and Referral Agencies (NACCRRA), hereafter referred to as AmeriCorps®CARE. Grantees that choose to provide childcare as a match source (as approved in their budget) may use AmeriCorps®CARE for technical assistance. Grantees can contact AmeriCorps®CARE at (800) 570-4543 with questions regarding childcare.
a. Program Director’s Responsibilities. In addition to determining a member’s eligibility at the start of the term of service, Program directors are required to notify AmeriCorps®CARE immediately in writing when:
i. A member is no longer eligible for childcare benefits due to a change in the member’s eligibility status (e.g., family income exceeds the limit, the child turns 13, a full-time member becomes a less than full-time member, or a member leaves the Program);
ii. New or existing members become eligible for childcare benefits;
iii. A member wishes to change childcare providers or a childcare provider will no longer provide childcare services; or
iv. A member is absent from the Program for excessive periods of time (five or more days in a month).
b. Costs incurred due to the grantee’s failure to keep AmeriCorps®CARE immediately informed of changes in a member’s status may be charged to the grantee's organization.
c. Half-Time Members. Although no portion of childcare expenses for half-time members may be paid from Corporation funds, Programs may choose to provide childcare to half-time members from other sources.
d. Less Than Full-Time Members Serving in a Full-Time Capacity. Less than full-time members who are serving in a full-time capacity for a sustained period of time (such as a full-time summer project) may be eligible for childcare benefits supported with Corporation funds.
e. Payments. Payments or reimbursement for childcare benefits will be made for eligible members to qualified providers from the date child care need was established after service began. The amount of childcare allowance may not exceed the applicable payment rate established by the State where the member is serving for child care funded under the Child Care and Development Block Grant Act of 1990. No payments and reimbursements will be made in the event the AmeriCorps member was ineligible, or if the provider was not qualified under the state guidelines.
8. Family and Medical Leave. The Corporation's Regulations at 45 CFR§2540.220 describe the circumstances under which AmeriCorps members can take family and medical leave in accordance with the Family and Medical Leave Act of 1993 (FMLA). However, family and medical leave does not count toward the requisite service hours and members may not receive a living allowance during this period.
At the grantee’s discretion, temporary leave may also be authorized for the reasons allowed under FMLA to AmeriCorps members who do not otherwise meet the eligibility requirements for FMLA leave as described in the regulations. If temporary leave is appropriate, grantees have the flexibility to determine the duration of the absence for up to 12 weeks, and may choose to continue providing health benefits to the member during the period of absence.
The length of the leave must be based on two considerations: (1) the circumstances of the situation; and (2) the impact of the absence on the member’s service experience and on the overall program. If the disruption would seriously compromise the member’s service experience or the quality of the program as a whole, then the grantee may offer the member the option of rejoining the program in the next class or completely withdrawing from the program.
9. Federal Work Study. Upon approval by the Corporation’s Program Office, grantees may enroll Federal Work Study students as AmeriCorps members. Only individuals who enroll in an AmeriCorps position in a program that has been approved by the Corporation are eligible to receive AmeriCorps member benefits. Except as required by Federal Work Study regulations, AmeriCorps members may not be paid on an hourly basis. The Corporation does not consider a wage under the Federal Work Study program to be a living allowance for purposes of the National and Community Service Act. The grantee is not required to report such wages in the AmeriCorps grant. If you have members to whom you pay a living allowance for any service beyond the hours worked under the Federal Work Study Program, then at least 15% of the amount of the living allowance must be provided from non-Federal sources.