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Run the Payroll Fee Auditor →Blog · Payroll Management · Home Health
Home Health Agencies: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for home health agencies starts at the federal baseline, three years for payroll records and two for the time records behind them, then adds what reaches this industry: CMS Medicaid.gov Electronic Visit Verification and 42 CFR 484.80. BEG runs home health agency payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Records specific to home health agencies
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.
Medicare-certified home health agencies must document that each aide completed at least 75 hours of training with at least 16 classroom hours before 16 supervised practical hours, passed a competency evaluation performed by a registered nurse, and receives at least 12 hours of in-service training in every 12-month period. The agency must maintain documentation showing each standard was met.
The federal baseline every employer keeps
29 CFR 516 requires payroll records for three years and the records they were computed from, time cards, schedules and piece or commission records, for two years. Employment tax records stay four years after the return they support. Forms I-9 stay three years from hire or one year from separation, whichever is later. For home health agencies the practical rule is that the pay codes for visit-based aide pay and travel time reimbursement produce records of their own, and an audit reads those, not the summary.
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]
- Medicare-certified home health agencies must document that each aide completed at least 75 hours of training with at least 16 classroom hours before 16 supervised practical hours, passed a competency evaluation performed by a registered nurse, and receives at least 12 hours of in-service training in every 12-month period. The agency must maintain documentation showing each standard was met. [42 CFR 484.80]
Read the full guide to how to prepare for a payroll audit, and the rest of the home health agency payroll library.
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Frequently Asked Questions
Home health agency records: CMS Medicaid.gov Electronic Visit Verification
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.
Home health agency records: 42 CFR 484.80
Medicare-certified home health agencies must document that each aide completed at least 75 hours of training with at least 16 classroom hours before 16 supervised practical hours, passed a competency evaluation performed by a registered nurse, and receives at least 12 hours of in-service training in every 12-month period. The agency must maintain documentation showing each standard was met.
How long does a home health agency keep payroll records?
Three years for payroll records and two for supporting time records under the FLSA, four years for employment tax records under the IRS rule, and longer where an industry rule cited above says so.
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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