The term independent caregiver is commonly used to describe a home care professional who does not work for an agency. According to the IRS, if a privately hired / independent caregiver is paid more than $2,100 per year (in 2019), they are considered a household employee, not an independent contractor.
What states pay parents to be caregivers?
Twelve states (Colorado, Kentucky, Maine, Minnesota, New Hampshire, New Jersey, North Dakota, Oregon, Texas, Utah, Vermont, and Wisconsin) allow these state-funded programs to pay any relatives, including spouses, parents of minor children, and other legally responsible relatives.
What happens if you hire an in home caregiver?
Trying to save costs while violating tax and labor laws can put your family at great risk. Fines can be levied and back taxes plus penalties can accrue. Work related injuries might not be covered by your homeowner’s insurance.
Can a caregiver be an employee of an agency?
If the caregiver is the employee of the agency, then the agency is responsible for bonds, taxes and insurance. Be wary of agencies that claim the caregivers are “independent contractors.” In most cases, caregivers do not qualify as “independent contractors” according to tax and labor laws.
Can a live in caregiver be considered a tenant?
Live-in caregivers who use your home as their main residence may be considered a tenant. This may complicate things should you need to terminate this person’s service. You should always consult with tax insurance and legal professionals if you choose to hire a freelance caregiver.
How are caregiving responsibilities divided in a family?
Caregiving responsibilities are almost always divided unequally. Typically, one or two siblings will take on the bulk of the work. Rather than expecting that everyone will do an equal share of the work, focus on what each person can do, even if it’s not as much as you’d like them to do.
