As I meet more and more families faced with the costly challenge of, either for themselves or for an aging loved one, wanting to age in place in the comfort of their own home and looking to obtain in-home care to do so, I am concerned. If long term care insurance is not in place, and with home care not being covered by private health insurance, Medicare or Medical, I see families hiring individuals privately, or worse yet, being misled by home care agencies that do not provide the protection of the “Employer of Record” requirements of state law, to care for themselves or a loved one. I’ve written and spoken on this topic before, but wanted to address it again because of the magnitude of its’ importance. If you hire an in-home caregiver privately, the state of California and IRS classifies you as the employer of record. As such, you must act as a small business hiring employees and withhold payroll taxes, social security, disability, and you must contribute as the employer and provide the employee with a W-2 at the end of the year, all required to be included on your personal tax returns. You must also provide Worker’s Compensation Insurance for that employee should they be injured while in your employ. An I-9 check must also be performed to ensure the employee is a citizen of the United States, or have the proper documents to work here if they are not. And not required by law, but hugely important, is there a criminal background check being completed before allowing that person into the home? If you are hiring an agency, please make sure they are not violating state and IRS regulations and classifying their caregivers as “Independent Contractors” to avoid accountability, and also avoiding the Employer of Record expenses and requirements I mentioned earlier, so that they can offer a lower price for this service, but they put the burden right back on you. Caregivers do not meet the criteria of an Independent Contractor. You can visit www.4nannytaxes.com for more information on this topic. Please make your informed choice based on delivery of service, and the integrity of the agency to follow all the laws required, not simply on price. The actual difference is not that large when considering the safety and protection of your loved one and their estate.
Myles McNamara, owner of Comfort Keepers In-Home Care, works to help the elderly on issues relating to senior independence. He can be reached in Santa Clarita at 661-287-4200.