If we hire a private caregiver as an employee, what are we responsible for besides taxes?

I think those of you who are relying on having your aide sign a form that he or she is not an employee and will pay self employment tax are living dangerously. Signing a form will not relieve you of liability if the IRS or your state gets wind of it. Do a Google search on "independent contractor vs. employee" and decide if you really are in an independent contractor situation.

Abby, yes you probably were hired as a (private) contractor. I have all my caregivers sign a contract that they will pay their own taxes and give them a 1099 at the end of the year.

I would like to know if you go to a persons house and do care giving 5 days a week 8 to 10 hours a day can your employer say you are a caregiver on your own?. If you pay your own taxes which is being done can the man that hired me get in trouble for not paying part of my taxes? I am in California and their are a lot of people who do private care giving for families. Does the law look at me as a private caregiver or that I am a employee? Does the man I work for should he pay half my taxes ?and when he files his taxes should he not claim me? He puts on my checks caregiver so I just would like to know what the law says I should be doing if I am protected by paying my taxes only. Or am I really looked at as I am a employee and can he get in to problems for not paying my taxes. I am not with a agency I am a private caregiver. If anyone knows the answer to this please let me know. Thank you all very much who will give me a honest answer on this. I must protect myself and tell my employer who hired me I do not even think he may know
the law himself?

Thank you,
Carolyn

lilbug, you are 100% correct. I have had caregivers from both and the agencys were the worst and the most expensive. I use carecom to find mine and have gone through so many who suck! lol to be blunt. I have one who is fabulous and has been with me years, she loves my Mom and is great with her. I have my caregivers pay their own taxes.

I am a private caregiver/CNA, and I also work with an agency, I am leaving the agency because I can longer work on the money side of it, and this is all the agencies care about. I have worked with very poor quality caregivers through the agency, and they say they provide training and they do not. You also have the spread of illness running rapid, many caregivers are in homes that have multiple caregivers in and out, who have also been in and out of other homes. As for dementia patients, the agency is the worst route to go, poorly trained, and the patient will go through many, as these agencies have a high turnover rate. I was very disgusted with the way these agencies care only for the money, and really have low concern for their caregivers, asking them to lift patients knowing they should not, putting all in harms way. As a prvate caregiver/CNA, I do not have the minimum times, but I do add my gas in if an hour or under, with that said, it is still less expensive to hire a private caregiver than through the agencies. I charge $15hr, and after the 2nd hour it lowers to $13hr, even with taxes, this is still lower than the standared $22-24hr rate through agencies. I will never work through an agency again, I have watched financial exploitation happen with patients who are not able to comprehend what they are paying for or/and what type of care they are given, and reported it. There was an article written by the Huffington Post in 2012 about the false perception of homecare agencies, and I would have never know what they were truly saying until working for one. When hiring a private caregiver, do background checks, ask for references from previous or current clients, I believe you would be in better hands.

STP, oh you and I both could write a book! I have emailed, interviewed and tried probably 100 potential caregivers and do I ever have stories. Its so hard to find the right one. Two from an agency , were in the newspaper for stealing! I find my own also, people who are loving and caring The Agencies get people who cannot do other jobs and get $8-10 an hour. I am not saying there can be good people from agencies but I never found one. I also give a 1099 at the end of the year and have a contract my caregivers sign to say they will pay their own taxes, they work for themselves and cannot sue me if they get hurt. (in legal terms)
PS oh and what I saw on my granny cam was incredible too, people lie lie lie.

You should also talk to your insurance agent and get a policy protecting you against lawsuits they could file - back problems etc.

I'm a contract care giver. I first worked same family for 16 years... Since 1992 to 2008 whom he was Doctor(young and good looking 48yrs old) had MS...Sorry homecare agency, l will never work for in my dream. Because in 16 year I worked same family, they trusted me to hire my back up for 48 hours...I did interview so many potential aide .... Finally very nice male nurse (cna)...had a lot experience of homecare according to agency. Dr and I were so wrong !!! I found out this caregiver was invited his girlfriend to Dr's guestroom doing you know what !!! Yes it is hard to find good caregivers from outside. I could write book of it.... I'm very lucky to have this good paying job and their families loves me what I do...last thing I get 1099- MIS end of each year. Also if you are looking for good caregivers best way would be word of mouth from people you knew....

I should add, the family paid all taxes, I&I any milages I was driving with my client.

I am a Professional Caregiver/CNA. I have worked for a client for 51/2 years.
She past last year. The family and my client treated me very well and paid me very well too.I in return I did everything for my client or the Family. When my client got ill I would sometimes only sleep 20 hrs. in a 96 hr. shift, My client was very importend to me and I treated her like my mom, I would do anything to still have her around. The family trusted me and I dealt with my clients money, never would I have taken anything, I keept very good records even thought my clients family never checked. I think if you put so many restriction on somebody you only attract the bad ones, the good ones never stay.Caregiving is a very hard and demanting job, so please treat your caregivers well. Caregiving is not house cleaning its taking care of your loved one. If you have a good attidute torward the caregiver and be kind you get a lot in return, thank your caregiver this goes a long way.
A very devoted caregiver~

I guess it's equal as the ones I interviewed from home care
Agencies were not CNA's or qualified. One told me the agency gave her a 10 question test. One told me she is only doing it as she lost her
Office job and one I tried got feces all over the wipes container, etc. O had bad luck.
Here and only twice were they out, one covered for the other one once and once I called in sick to my job (at that time) I am now retired but need time away for my groceries, etc. I do not allow anyone in my house even with a runny nose, inhale strict rules on that. Go with your gut instinct on a person no matter where you find them, either way is fine as long as you interview them and call their references. Good luck!

I agree hire from an agency-they can send another person if the one assigned to you calls in sick or just does not show up and if you find he or she in not doing a good job a replacement can be found also they are insured.

I would have to disagree with luvmom, maybe she's just been lucky but I've heard of more horror stories with issues of people being hired through registries/independently vs. a home care companies. In many cases they couldn't get hired on with a home care company because of their background, not being able to pass a drug test and a myriad of other reasons (lying about qualifications, poor references, etc) which is why they turn to registries because they aren't scrutinized the same.

And while yes they might make less per hour ($8-10 vs $15) they don't have to worry about doing their own taxes (sure you pay them $15 but after they pay their own taxes they're down to closer to what the others are making), if they were ever to get laid off for whatever reason they'd qualify for unemployment (which you don't when you're a contract worker) and most home care agencies offer insurance to full time caregivers so there's a lot of benefits to working for a home care company. And lets not forget they offer a great support system --people you can turn to, to talk to when you have a bad day. Many home care companies also offer free training to keep the caregiver up on their skills and knowledge of the ever changing healthcare environment. I also noticed you also didn't address what happens when your caregiver is out sick...which coming to work sick because she doesn't have insurance could put your parent in the line of something contagious.

Oh, and a benefit to the caregiver is that getting loans as a contract worker is much more difficult than being an employee because you have to prove a solid stable work history. So in today's economy if they wanted to get a car or house it's going to be easier for the person who works for a company to qualify than it will be for someone who's an independent contractor (because they typically have gaps in work).

So, I think a home care company is a win-win for both sides.

Hi carol,I also have had caretakers for up to 2 years with no problems.
We have them sign a form as an independent contractor and theynpay their own taxes, not us. According to our Accountant this is fine. I have home owners
Insurance with workers comp and that's it. Oh we also have cameras to make sure there is no abuse or lying, it's helped us a few times too!
We pay with a check and give them time sheets they sign, we do everything legal as I am responsible for the estate, etc. I have a daily schedule and routine in which they go by. If you go thru an agency you can get poor help, I have found, they ar. E getting $8-10 an hour instead of $15 which we pay. I find people that love their work, not people who cannot find work. Two whom I almost hired but didn't, from an agency, turned out later to have both stole and got caught.
They were sued from families and had clean background checks but a lot of people work for agencies because they are desperate for money. I do not mean to offend anyone, some are great! This is just my experience in interviewing and hiring many over the years. Email me if you have any questions, best of luck.

Services: You have to know exactly what services you want them to preform and clearly direct them accordingly. And in many cases the family members hiring someone don't fully understand understands all the needs of the senior(s) so they don't know to direct them for all the appropriate services they need.

Scheduling: You are responsible for creating their schedule as well as following up with them if they are a no show, call out sick or need to take additional time off. You'll need to find a replacement for them for those times or you'll need to be available yourself.

Supervision: You're their boss and are responsible for managing their performance and discipline. This can put both you and the caregiver in an awkward position if they differencing opinions than you.

Background Checks: You should ALWAYS do a background and drug screen on anyone you're having come into your home. Since references are typically provided by the potential employee they are typically only going to give you the ones that are good so a formal background check is always recommended.

Taxes: You're responsible for withholding taxes and social security, filing appropriate reports. This includes State and Federal unemployment compensation taxes as well. Penalties are severe and could result in large fines if not done properly. (Recommend hiring an accountant to assist).

Malpractice: You are responsible if your employee does something wrong and injures the person receiving services.

Employee Injuries: You are responsible if there is an injury in your home. This could result in medical bills or even a major lawsuit.

Theft: You are responsible if an employee steals from you or the person receiving care. If caught you'll be responsible for handling the police reports and appearing at trial, meaning you'd most likely need a lawyer.

If you don't want to go through all this and be fully responsible for the caregiver you could speak with a home care agency about hiring on your caregiver to provide care to your parent. And the agency would take care of all of the above listed concerns. Sure you'll pay more but the peace of mind is typically worth it. Even though she's been with you for a year doesn't mean something can't go wrong in the future and the best steps are to ensure you and your family are protected.

Good Luck.