Tax Questions

Now that you are an employer, you may receive letters or forms. These letters may come from the IRS, Virginia Department of Taxation, and Virginia Employment Commission. CDCN asks for these letters to be sent to CDCN but they may be sent to the address of the Employer. Most of the letters are for information only and you do not need to act. If you have questions, call CDCN Customer Service; we may ask you to fax, email or mail the document to us.

Most people must pay taxes. Taxes that are withheld include Social Security and Medicare (FICA), and income taxes (federal and state) for each paycheck. Withholding amounts are based on the tax exemption status the Attendant selected on the tax paperwork. A list of payroll withholdings will be on the Attendant’s pay stub.

The program will pay the Employer’s portion of taxes. As your F/EA, CDCN will complete and submit all paperwork and payments.

Consumer Direct will issue the W-2 Statement for wages paid out by Consumer Direct for the prior year. CDCN has until January 31st to mail the W-2 to your employees.