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What you Should Know When Hiring an In-Home Caregiver
The selection of a caregiver is very important. In order
to make the best possible choice for your loved one you
must look at skill, experience and affordability. You must
also know and understand the three (3) main ways in which
caregivers are usually found – Home Health Agencies, Domestic
Employment Agencies or "Word of Mouth" – and understand
how each may affect you.
Home Health Agencies
These agencies specialize in a variety of health and caregiver
services and are usually licensed by a State Agency. Caregivers
are actual employees of the agency. This means they are
screened, oriented, trained and
supervised by the agency and are accountable to both the
agency and the client. The Home Health Agency withholds
all the appropriate taxes, pays for the bonding and provides
liability coverage and Workman’s Comp benefits should an
injury occur on the job. Caregivers working as employees
of such an agency are paid by the agency, which in turn
bills the client directly. Due to the fact that the agency
provides training, liability and insurance coverage and
handles all tax withholding, rates for caregivers from a
Home Health Agency are usually higher than those found in
other ways.
Domestic Employment Agencies
Domestic Employment Agencies specialize in referring workers
for all types of household and personal services (i.e. caregivers,
cooks, cleaning people). They customarily check references
and will charge a "finder’s fee" to the client and to the
worker, equal to one weeks salary, which is their fee for
finding the worker a job. This fee usually comes with a
time specific "guarantee" (average 90 days), specifying
that if the client or caregiver is dissatisfied the agency
will find a replacement worker for no additional charge.
Caregivers from this type of agency are Not Employees of
the agency. This means the agency is not required to train
or supervise the caregiver and it does not handle tax withholding.
Sometimes caregivers from domestic employment agencies may
be classified as "independent contractors" and sometimes
they may be classified as your employee. Because of the
tax and legal implications of this type of arrangement,
it is highly recommended that you discuss this issue with
the IRS, your accountant or legal consultant.
"Word
of Mouth"
Caregivers found by "word of mouth" are usually referred
from friends, neighbors, and faith based organizations or
may be found through a classified ad in the newspaper. There
is no "finder’s fee" associated with this type of caregiver
and you are responsible for background and reference checks.
Sometimes caregivers found by "word of mouth" may be classified
as "independent contractors" and sometimes they may be classified
as your employee. Because of the tax and legal implications
of this type of arrangement, it is highly recommended that
you discuss this issue with the IRS, your accountant or
legal consultant.
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