| SDP Team
Understanding the Co-Employer Model
The Co-Employer model is one of the most common ways families and participants choose to manage services under California’s Self-Determination Program (SDP). It offers a balance between freedom and structure — allowing participants to recruit and supervise their own employees while sharing certain employment responsibilities with the Financial Management Service (FMS).
How the Co-Employer Model Works
In this model, the participant (or their representative) and the FMS both play important roles. The participant is considered a co-employer — responsible for selecting and managing their workers — while the FMS handles payroll, tax reporting, and compliance with employment laws.
Participant Responsibilities
- Recruiting, interviewing, and hiring employees who meet their specific needs.
- Setting work schedules, duties, and expectations for employees.
- Approving hours worked and ensuring timesheets accurately reflect care provided.
- Providing feedback, training, and if necessary, terminating employees.
Sentinel Four’s Responsibilities
- Processing payroll and issuing paychecks to approved employees.
- Withholding and filing all required state and federal taxes.
- Maintaining workers’ compensation coverage and other required insurances.
- Ensuring compliance with labor laws and Department of Developmental Services (DDS) regulations.
Together, these responsibilities create a partnership that gives families both control and support.
Why Families Choose the Co-Employer Model
Many participants prefer the Co-Employer model because it provides the flexibility to hire people they know and trust — such as family friends or long-term caregivers — while reducing the administrative and legal burdens that come with being a sole employer.
By partnering with Sentinel Four, families can focus on care and quality of life, knowing that payroll, taxes, and compliance are handled accurately and on time.
When It Might Not Be the Right Fit
Some participants, especially those with complex medical needs or who hire licensed professionals, may choose the Sole Employer model instead. In that model, the participant is the full legal employer and takes on all employer responsibilities directly. Sentinel Four can help you understand the differences and determine which model best suits your needs.
In Summary
The Co-Employer model represents the heart of the Self-Determination Program — choice with accountability. It allows you to build your own team while Sentinel Four manages the financial, legal, and administrative details that keep your program compliant and running smoothly.