Home care, also known as home care, provides a caregiver to work in your home and help with activities of daily living (ADLs), instrumental activities of daily living (IADLs), and housework. Some home health aides accept clients who live in assisted living or skilled nursing facilities and, in those cases, work with their clients in the facility rather than in the client’s home.
There are three basic ways to hire a professional caregiver. First, you need to decide whether to hire a private caregiver or go through an agency. There are two types of home care agencies: referral and full service. This article addresses the differences between the three options.
full service agencies
Full-service home care agencies take care of the major aspects of hiring a caregiver for you. It is in these agencies’ best interest to make sure their caregivers are experienced, competent, and a good fit for you, the client. Services typically include:
* Pre-screening criminal records of employees
* Checking multiple references
* Provide workers’ compensation insurance
* Maintenance insurance or professional liability bond
* Cover all payroll taxes
* Provision of a caregiver when a contracted one will be absent
* Replace a caregiver who is not a good fit
* Supervision of caregivers
Before you begin your search, read the important questions to ask before signing an agency contract.
referral agencies
Referral agencies provide some initial screening and screening services, but once you hire a caregiver from a referral agency, your relationship with the agency ends. Referral agencies do not monitor caregivers. Referral agency services generally include:
* Pre-screening criminal records of employees
* Checking multiple references
Your responsibilities, after finding a caregiver through a referral agency, will include:
* Pay the caregiver directly and cover any related taxes
* Insure the caregiver and/or their personal items (Contact a local insurance agent to ask what protection an existing homeowners policy provides. Ask for information on dishonesty bonds and workers’ compensation).
* Supervise caregiver
* Find a replacement caregiver if needed
Private Hire Caregivers
Private hire caregivers are often hired by word of mouth recommendations. To get started, read tips on how to find, background check, and interview a privately hired caregiver, review a downloadable caregiver job sheet, and learn how to avoid fraud and abuse by homecare employees.
Taxes and Private Caregivers
Privately contracted caregivers may work as independent contractors or as your employees. Tax laws change every year; however, in 2006, any household employee who earned less than $1,500 per year is considered a contractor. Therefore, a caregiver in this situation would use the IRS 1099 form, which means that he is responsible for his own taxes at the end of the year. There is one exception: Homecare workers acting as their own business with, for example, business cards, clients, or a business license; even if he earned more than $1,500, a person in this scenario would be considered a contractor. All other workers would be considered your employees and you would be responsible for withholding the proper amount of tax from each paycheck. There is also a fixed amount for transportation costs ($105/month in 2006) and accommodation costs, which are not calculated in the annual sum.