Gradually, or at times unexpectedly, it happens… you can’t walk without holding onto furniture, you can’t keep up with household chores, and you can’t see the street signs to drive safely. You fear that you are slowly losing your independence. Let’s face it; the loss of independence is one of the biggest fears among the elderly. Fortunately, hiring a in-home caregiver can help you remain independent at home. This article discuses agency Caregivers versus private Caregivers.
Getting the Best Help at Home: Independent versus Agency
At first glance, hiring a private caregiver independently may be viewed as more practical or more affordable than hiring a caregiver through a home care agency. However, you have to factor in federal and state regulations and employment laws because hiring an in-home caregiver is actually considered to be an employee- employer relationship. Basically, you are responsible for all state and federal employment taxes, which can quickly raise the cost of home care services.
Furthermore, you may be required to have certain employee insurances in place to protect yourself or a loved one from claims with Caregiver accidents and injuries. Most homeowner’s insurance policies are not enough to cover the loss and some policies won’t even cover worker compensation claims. Another important aspect to remember is if you decide to let a caregiver go, the caregiver may file for unemployment insurance with the EDD against you as their employer. This may invoke future problems if you had not reported the caregiver as an employee you hired.
Also tax deductions are not usually possible when hiring a private Caregiver. An agency can provide yearly statements of invoices to use for deductions on your tax returns. It is recommended to consult your financial adviser or accountant.
When you weight in all the factors, hiring a private caregiver is generally not the best option. Hiring independently may create unforeseen liabilities for you and your family. On the flip side, if you hire an in-home Caregiver through a home care agency the agency will:
- Cover the Caregiver with a worker’s compensation insurance policy,
- Provide year end statements for possible tax deductions,
- Pay their taxes, and
- Fill out the Caregiver’s W-2 and W-4 forms.
Even better, an agency usually has multiple caregivers, so you’ll be able to audition a handful of qualified employees to find the right Caregiver for your situation. A glance at the benefits of using a home care agency will completely change your mind about them:
- Home care agencies will screen caregivers and conduct the proper background checks and reference checks.
- Agencies strictly monitor their caregivers to ensure you receive quality care. If your current caregiver does not meet your needs for any reason, the agency will provide a replacement.
- Agencies are licensed, insured, and bonded. Responsible agencies will take full responsibility for all care provided, and is insured in case the Caregiver is injured in your home.
- Agencies will take care of your Caregiver’s payroll and proper year end of reporting to the IRS. If you hire a Caregiver through the agency, the agency is the individual’s employer, and not you.
Conclusion
Before you consider hiring a private Caregiver, factor in all of the responsibility, liability and attentiveness that will be required of you. Ideally, most home care agencies provide a wide variety of services including:
- Meal preparation,
- Light housekeeping,
- Transportation,
- Laundry,
- Errands and shopping, &
- Assistance with personal care.
If you are interested in learning more about agency Caregivers versus private Caregivers and the services offered by All Heart Home Care, contact us today at 619-736-4677 for a free in-home consultation. We will discuss which services you’ll need.
