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Run the Payroll Fee Auditor →Blog · Payroll Management · Home Health
Home Health Agencies: How to Switch Payroll Providers (2026)
Switching payroll providers at a home health agency means moving year-to-date wages and taxes per employee, every pay code for visit-based aide pay, travel time reimbursement and Medicaid billing vs payroll, the exemption records for registered nurses and LPNs, and the retained records the law requires. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What has to migrate from a home health agency
Year-to-date gross, taxes and deductions per employee so the W-2 is one form at year end; every pay code, visit-based aide pay, travel time reimbursement, Medicaid billing vs payroll and live-in caregiver rules, rebuilt with the same taxability; each state's withholding and unemployment account numbers and rates; garnishment orders with balances; direct deposit authorizations; and the exemption documentation for registered nurses and LPNs.
Section 12006(a) of the 21st Century Cures Act requires states to use electronic visit verification for all Medicaid personal care services that require an in-home visit since January 1, 2020 and for home health services since January 1, 2023. States that fail to comply face federal matching reductions of up to 1 percent.
Timing the cutover
A quarter boundary is the cleanest cutover because the old provider files a final 941 for its quarter and the new one starts fresh, with no Schedule D reconciliation. Mid-quarter switches work but require the outgoing provider's tax filings to be reconciled before the first new run. Live payroll on BEG is 3 to 5 business days from signing; the migration of home health agency pay codes is done before that first run, not after.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Section 12006(a) of the 21st Century Cures Act requires states to use electronic visit verification for all Medicaid personal care services that require an in-home visit since January 1, 2020 and for home health services since January 1, 2023. States that fail to comply face federal matching reductions of up to 1 percent. [CMS Medicaid.gov Electronic Visit Verification]
Read the full guide to how to switch payroll providers, and the rest of the home health agency payroll library.
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Frequently Asked Questions
When is the best time for a home health agency to switch payroll providers?
At a quarter boundary, ideally January 1 so the W-2 year is clean. Mid-quarter is workable with a reconciliation of the outgoing provider's deposits and filings first.
What home health agency data is most often lost in a switch?
The pay code configuration for visit-based aide pay and travel time reimbursement and the exemption records for registered nurses and LPNs. Year-to-date figures usually move; the industry-specific setup is what gets rebuilt wrong.
What does managed payroll cost for a home health agency?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Visit-based aide pay, travel time reimbursement and Medicaid billing vs payroll are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Home Health Agencies. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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