After deciding that home care is the right option, consumers weigh their options of hiring a Home Care Agency or contracting directly with a Home Care Aide. However, consumers should be aware of the following benefits of working with a home care agency versus the risks of a direct hire.
Families used to have the option of hiring the caregiver as an independent contractor (and therefore, the family would not be responsible for payroll taxes, withholdings, etc.). However, this is no longer an option for families, as the IRS has recently ruled that caregivers must be classified as employees, not independent contractors.
Paying an independent caregiver under the table is illegal. Families who hire independent caregivers must take on the responsibilities of being an employer or use a 3rd party payroll management service. Also, it’s important to note, paying the caregiver under the table is not in the family’s best interest because it is highly likely that by doing so, the family is missing out on some tax benefits.
By hiring a Caregiver or Home Care Aide directly, the individual consumer and their family takes on the responsibilities as their employer. This includes paying for the employee’s payroll taxes, workers compensation, unemployment insurance, and liability. If the employee gets hurt during their time providing care or commuting to or from the individual’s home, it is the consumer that is legally and financially liable. Working with a home care agency alleviates the client of these responsibilities.
Unless the consumer does a criminal background check at their own expense, the consumer does not really know who is providing care in their home. Home care agencies are required to conduct thorough criminal background checks that provide more comprehensive data than available to the public prior to any home care agency employee stepping foot into a client’s home.
If a consumer’s direct hire harms or steals from the consumer, it is still the consumer that is liable. However, home care agencies are required to maintain various insurances to protect their clients and are required by law to promptly investigate all complaints of abuse or theft. Furthermore, home care agencies can provide a replacement without disruption of service if the home care agency employee gets sick, injured, or changes jobs.
If the consumer has a direct hire, the consumer is responsible for continuous training and supervision. In contrast, home care agencies have the experience, knowledge, training, resources, and licensure to ensure that their employees are thoroughly trained in all services performed, including safe infection control, falls prevention, emergency preparation, and personal care tasks.