There are several reasons for employing an in-home senior caregiver for an elderly family member, even those who are healthy and active.
From simple duties like companionship and conversation to household chores like shopping, light housework, and preparing meals, senior caregivers can help the elderly maintain independence and high quality of life. Or you may need a senior caregiver who provides physical assistance and helps with hygiene or other personal care services.
You may only need a caregiver for a few days a week or certain hours during the day. Some situations may require a full-time or live-in caregiver.
Whatever your senior care needs, there are three ways to hire a caregiver:
How you hire a senior caregiver will likely determine if you are now an employer.
Being an employer gives you more flexibility and options on who you hire and control of the caregiver’s job duties. You will also be responsible for paying your caregiver and withholding employee and employer taxes.
Hiring through a Home Health Care Agency
A home health care agency will employ the caregiver to work in your senior’s home and take care of paying the employee and filing taxes as well as compliance with tax, wage, and labor laws. In this case, the agency controls the job duties of the caregiver since it is considered the employer.
The agency will select the caregiver and send them to your senior’s home. However, you may not get the same caregiver every time.
Hiring through a Referral or Placement Agency
A referral or placement agency recruits the senior care worker on your behalf. They charge a fee for this service and then hand over control of employment to your family. Now you are responsible for payroll, taxes, insurance, and compliance.
A referral or placement agency may also offer services such as background screening of candidates, post-hire assistance, and backup or replacement care.
By managing the hiring process on your own, you will find, recruit, and hire the senior care worker without the assistance of an agency. You will also take care of payroll, taxes, insurance, and compliance.
GTM Can Help
While being an employer gives you more control over the hiring process and your caregiver’s employment, the administrative side in-home senior care may seem like a lot of work. And it can be. The IRS estimates that it takes a household employer 60 hours each year to comply with all federal and state tax laws. It’s a hassle and there are risks involved if you don’t get it right. Even unintentional violations of tax, wage or labor laws can lead to thousands of dollars in fines and penalties.
This is where partnering with a firm like GTM Payroll Services can remove the risks, hassles, and worries of being an employer of an in-home senior caregiver. Call (800) 929-9213 for a complimentary, no-obligation consultation with a household employment expert. Learn how we can manage it all saving you time and providing peace of mind that your payroll and tax administration is being done the right way.
Free Senior Care Payroll and Tax Guide
Doing senior care payroll and taxes yourself? Download our complimentary Senior Care Payroll and Tax Guide. In this new guide, we lay out the steps on how to comply with tax, wage, and labor laws when you hire an in-home senior caregiver.