| Affordable In Home Care, Inc. |
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| F A Q Frequently Asked Questions |
| Hiring A Private Caregiver Myself VS Using An Agency |
When considering how to take care of an elderly loved one, some families want to hire a caregiver privately in order to save money. In
this case, the family must recruit, hire and supervise the caregiver. Direct payment is done by the family for the worker and they shoulder
replacement and backup staff should the caregiver not show up or want time off.
It is possible that you can save money if you wish to manage your own employee, however you need to consider the additional
responsibility and liability on your hands.
this case, the family must recruit, hire and supervise the caregiver. Direct payment is done by the family for the worker and they shoulder
replacement and backup staff should the caregiver not show up or want time off.
It is possible that you can save money if you wish to manage your own employee, however you need to consider the additional
responsibility and liability on your hands.
What you should do before hiring a caregiver:
- You need to do a previous employers reference check. You need to make sure that the candidate has no criminal record and
abusive behaviors, well experienced with the job and has completed several trainings. This process can be confusing, time
consuming, and expensive.
- You, being the employer, must be familiar with labor requirements and employment papers to comply with labor regulations, all
Federal, State and local taxes involving your employee. You are responsible to collect and remit them. These taxes, along
with workman's' compensation, could amount to up to 15% of the salary you pay a caregiver. Paying with a personal check or
"under the table" is illegal, risking paying back taxes, penalties and interest as well. You run a great risk of a worker applying
for unemployment after the job is finished which would lead to an audit by the EDD, a very unpleasant experience.
- You have to arrange for backup caregivers to aid you in case your caregiver is ill, needs time off or if they simply don't show up
anymore. You will need to go through the same tedious hiring and training process while your loved one waits. Who will take
- You are responsible for any job related injuries suffered by your employees. To protect yourself, you will have to provide
workman's' compensation and bond insurance against theft. Remember, the elderly are venerable and you can't always be
there to know what goes on.
- Disciplining or terminating an employee is also part of your job. With an agency if you are not satisfied with a caregiver, it is
their job to find you a replacement.
What you should know before hiring an agency:
- There are two different business models of care being offered to consumers today. There are home care companies that have
W2 employees and there are companies that have independent contractors.
- Companies that provide independent contractors DO NOT pay the employer workman's compensation or payroll taxes, the
consumer is liable for those. Part of the problem for consumers is that there are NO disclosure laws that govern these
independent contractor type companies and the potential liability for the consumer because of that is great.
- Just because a person says, or their written material says that their caregivers are their employees and are insured does not
necessarily make it so. Always get verification of their Workers' Compensation Insurance Certificate and legal status of the
worker.
- There is a big difference between these types of companies and the consumer needs to know the RED FLAGS of being fooled
into believing they are getting a company that has employees but are really getting an independent contractor. Some of these
red flags are: If the home care company wants you to give one check to the company and give a separate check to the
caregiver, you can suspect that you are working with an independent contractor agency.
- If a company is charging a price for services that is markedly below everyone else in the industry, regardless of what they tell
you, they probably provide independent contractors. They can charge the lower prices because they do not pay for
the caregivers employee taxes, liabilities or insurances. These registry type companies do not screen their caregivers
the same way. They may not do background checks to cut their costs and may employ illegals. The sweet taste of cheap
prices can cost you a lot more in the long run. The consumer is the one who has to pay in the event the independent
caregiver gets injured or becomes ill while working for the consumer. Many times the consumer has no idea who they are
getting as a caregiver for a loved one.
- Full service agencies take responsibility in the recruitment process, payment of payroll taxes, withholdings and filings, workers
compensation, preform background checks and provide formal supervision. They will arrange replacement and backup staff
for time off, sick time and emergencies. Families will have peace of mind and spend more quality time with their loved ones.
| We will be happy to provide you with a free quote. Just call us at 818-727-1818 |