THIS WAS AN ISSUE WHEN THE PROGRAM RULES WERE CHAGED AT IHHS INDICATING THAT WAGES FOR CARE OF A PATIENT IN THE WORKERS HOME, USUALLY A RELATIVE , WERE EXCLUDED FROM FEDERAL WAGES. THE COUNTY THAT IS ADDMINISTERING THESE PAYMENTS SHOULD INDICATE O, IN BOX I , WAGES, TIPS OTHER COMPENSATION, ON THE W2 PROVIDED TO THE CAREGIVER. THE PAYMENTS ARE SUBJECT TO AND SHOULD BE INLUDED IN THE APPROPRIATE BOXES FOR SOCIAL SECURITY WAGES AND MEDICARE WAGES TO WHICH THEY ARE SUBJECT TO. WHEN MY COUNTY FIRST TRIED TO REPORT THESE WAGES THEY DID PUT THEM IN BOX 1 ON THW W2s THEY ISSUED. I  HAD TO GO TO THE COUNTIES HEARING OFFICER AND FILE AN APPEAL WHICH WAS HEARD BEFORE A STATE ADMINISTRATIVE LAW JUDGE TO REQUIRE AN AMENDED W2 BE ISSUED. THE COUNTY WAS REQUIRED TO CHANGE THEIR W2 REPORTING PROCEEDURES. IF YOU HAVE A W2 WITH BOX 1 FILED IN CONTACT THEIR IHHS ACCOUNTING OFFICE FOR A CORREDTED FORM. I BELIVE THIS IS A CALIFORNIA ISSUE ONLY BECAUSE IHHS FALLS UNDER THE MEDICAL PROGRAM ADMINISTRATION PROCESS.