A. Need Types That Require the Vendor S SSN Or TIN Are

MS 2208(1)

[The individual must provide documentation of the expense and the information necessary to issue the payment (vendor’s name and address, amount, etc.). FAD payments are issued directly to the vendor. In some instances, it may be necessary to issue a two-party check to the vendor and the client so funds can be properly credited. FAD payments are NEVER issued directly to the individual.

Some FAD payments require the Social Security Number (SSN) or Tax Identification Number (TIN) for the vendor receiving payment. It is very important the correct SSN or TIN is obtained and entered as this information is used to generate form 1099 to the vendor for income tax purposes. If the SSN or TIN is not provided, payment cannot be made. The individual’s SSN should NEVER be entered when issuing a FAD payment.

A. Need types that require the vendor’s SSN or TIN are:

1. Rent

2. Car Repairs

a.Payments for car repairs may be made only to reputable vendors or vocational schools.

b.FAD funds cannot be used to pay a private individual for car repair services.

c.New or used automotive parts may be purchased with FAD funds if a private individual is doing the repair, but in this instance, labor costs cannot be paid with FAD.

3.Child Care

a.Child care payments can be made for unsubsidized child care only.

b. CCAP child care copayments cannot be paid with FAD.

c.Child care payments are made to the vendor or individual providing the service.

4.Other Services

This payment need type is to be used for payment of a service related need that may be identified for a particular individual and should be rarely used. Examples of an appropriate use of this payment might include repair costs to a home (furnace repair or replacement, plumbing, roof, etc.) incurred unexpectedly. Document case notes thoroughly to explain the need for payments issued utilizing this code.

B. The need types that do NOT require the vendor’s SSN or TIN are:

1. Utilities

a. Allowable expenses are utilities that cover basic needs. Some examples are electric, gas, water, sewer, etc.

b. Cable, satellite, and other television providers are not considered basic needs.

c. Only the base rate is paid for a phone. If the individual does not have a home phone, the base rate for a cell phone service may be paid. Data packages for multiple phone lines /cellphones, tablets, etc. are NOT considered basic services.

2. Mortgagepayments

Mortgage payments are only made for the individual’s primary residence.

3.Insurance

a.Insurance premiums for a primary residence or automobile owned by a member of the benefit group.

b.Premiums for liability insurance to maintain a profession or business.

4.Car Payments

a. Monthly car payments can be made for an automobile owned by a member of the benefit group.

b.When possible, car payments are to be made directly to the vendor. In some instances, it may be necessary to issue a two-party check to the vendor and individual.

5.Relocation Expenses

a.Deposits for utilities are paid to the vendor.

b.Deposits for rent are paid directly to the vendor.

c. Moving expenses may be paid for renting a truck or other expenses expected to be incurred. Payments are made directly to the vendor or company. A two-party payment may be issued if necessary.

d.If the individual is using a moving company who is charging for labor, the payment should be issued under “Services”.

6.Taxes/Licenses

a.Property taxes for homes and automobiles can be paid if the individual owns or is purchasing a property or vehicle for which taxes are owed. When paying property taxes for a home, the home must be the individual’s primary residence.

b.License fees may be paid for a FAD eligible individual needing a business license to obtain or maintain employment.

c. Driver's license fees may be paid if obtaining a driver's license will increase the individual's likelihood of maintaining employment.

d. Issue payments directly to the vendor. In some instances, it may be necessary to issue a two-party check to the individual and the vendor so funds can be properly credited.

7.Child Care

a. Child care payments can be made for unsubsidized child care only.

b.CCAP child care co-payments cannot be paid with FAD.

c.Child care payments are made to the vendor or individual who is providing the service.

d. The SSN or TIN of the provider is required to issue the payment.

8.Other Goods

a. Only used for items not covered by another FAD need type.

b. Examples of an appropriate use of this need type might include:

1) Purchase of new or used auto parts (do not include cost of labor);

2) Materials and supplies purchased for home repair by an individual;

3) Household furnishings in the event of a catastrophe;

4) Uniforms, including shoes;

5)Criminal records checks; or

6)Drug testing fees.]