Payment for supportive services or reimbursement for out-of-pocket expenses to employees performing services in programs under the Older Americans Act are wages, unless the program is specifically excluded by law.

EXCLUSIONS: The following programs are specifically excluded by law:

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  Active Corps of Executives (ACE)

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  Foster Grandparent Program

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  Older Americans Community Service Programs

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  Retired Senior Volunteer Programs (RSVP)

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  Service Corps of Retired Executives (SCORE)

Allowances and reimbursements for travel expenses are not wages (see RS 01401.360).

The exclusions above are based on two legislative amendments to the Older Americans Act of 1965.

Effective August 19, 1972, P.L. 92-258 established the Nutrition Program for the Elderly under Title VII of the Older Americans Act. This program provides older Americans, particularly those with low incomes, with free or low cost meals. Generally, public and/or nonprofit agencies administer the program.

Remuneration paid to individuals performing services and receiving compensation as an employee of an agency administering a title VII program is wages for social security purposes.

Determine whether payments received by an individual under the Older Americans Act were intended as:

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  benefits to the individual, or

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  compensation to the individual based on services performed for the agency providing services under the Older Americans Act.

If the payments represent compensation for services, such payments constitute wages.