Living Allowance Distribution. A living allowance is not a wage. Grantees must not pay a living allowance on an hourly basis. Grantees 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 all required hours and is permitted to conclude his or her term of service before the originally agreed upon end of term, the grantee may not provide a lump sum payment to the member. Similarly, if a member is selected after the program’s start date, the grantee 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.
AmeriCorps EAPs may provide a living allowance or other in-service benefits to their members, but are not required to do so.
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.
Taxes and Insurance. Requirements related to member living allowances and benefits are in 45 CFR§§2522.240 and 2522.250. In addition, grantees must ensure that the following procedures are followed:
Liability Insurance Coverage. The grantee is responsible for ensuring adequate general liability coverage for the organization, employees and members, including coverage of members engaged in on- and off-site project activities.
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.
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. Worker’s Compensation. Some states require worker’s compensation for AmeriCorps members. Grantees must check with State Departments of Labor or state commissions to determine worker’s compensation requirements. If worker’s compensation is not required, grantees must obtain Occupational, Accidental, and Death and Dismemberment coverage for members to cover in-service injury or incidents.
Healthcare Coverage. Except for EAPs, Professional Corps, or members covered under a collective bargaining agreement, the grantee must provide healthcare insurance to those members serving a 1700-hour full-time term who are not otherwise covered by a healthcare policy at the time each begins his/her term of service. The grantee must also provide healthcare insurance to members serving a 1700-hour full-time term who lose coverage during their term of service as a result of service or through no deliberate act of their own. The Corporation will not cover healthcare costs for family members.
Programs may provide health insurance to less-than-full-time members serving in a full-time capacity, but they are not required to do so. For purposes of this provision, a member is serving in a full-time capacity when his/her regular term of service will involve performing service on a normal full-time schedule for a period of six weeks or more. A member may be serving in a full-time capacity without regard to whether his/her agreed term of service will result in a full-time Segal AmeriCorps Education Award.
Minimum Benefits. When required to provide healthcare insurance coverage, the grantee may obtain healthcare from any provider as long as the coverage provided by the grantee provides the following minimum benefits:
Physician services for illness or injury
Hospital room and board
Emergency room
X-ray and laboratory
Prescription drugs
Limited mental/nervous disorders
Limited substance abuse coverage
An annual deductible of no more than $250 charges per member
No more than $1,000 total annual out-of-pocket per member
A 20% co-pay or a comparable fixed fee with the exception of a 50% co-pay for mental and substance abuse care
A maximum benefit of at least $50,000 per occurrence or cause
Administration of Childcare 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. Requirements and eligibility criteria are in the AmeriCorps regulation 45 CFR §2522.250. 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. The criteria for member eligibility are contained in 45 CFR Part 2522.250. Members are considered to be full-time participants for purposes of eligibility for childcare payments on the same basis as eligibility for healthcare coverage. Members who excluded from healthcare coverage solely on the basis of serving in a Professional Corps, or because they are covered under a collective bargaining agreement are not excluded from receiving childcare benefits on that basis. Members serving in EAPs are not eligible for the childcare benefit. The Corporation will not cover childcare costs for family members or for members who have not served on a full-time, or who have ceased serving on a full-time basis. Programs may provide child care to less-than-full-time members serving in a full-time capacity, but they are not required to do so. Also see the Policy FAQs for more detailed information on administering childcare and healthcare.
6. Notice to Childcare and Healthcare Providers. The grantee must notify the Corporation’s designated agents immediately in writing when a member’s status changes, such that it would affect eligibility for childcare or healthcare. Examples of changes in status include: changes to a member's scheduled service so that he/she is no longer serving on a full-time basis; terminating or releasing a member from service; and suspending a member for cause for a lengthy or indefinite time period. Program directors should contact AmeriCorps®CARE at NACCRRA at (800) 570-4543 on childcare related changes, and their health insurance provider about health insurance related changes.