You have weighed the choice of how to hire a caregiver – private vs. agency and have decided you want to hire your own private independent caregiver. Now, how do you determine what the going home caregiver pay rate is? Before we look at that, it’s important to understand what the definition of an independent caregiver is according to the Internal Revenue Service. There are some things you need to consider.
Independent Caregivers are Household Employees
The term independent caregiver is typically used to describe a caregiver or home care professional who does not work for an in-home care agency but rather engages directly with you (the client).
The Internal Revenue Service (IRS) states that an independent caregiver who is privately hired and makes more than $2,100 per year (in 2019), is considered to be a household employee, not an independent contractor.
In this case, the family hiring the independent caregiver assumes all the responsibilities of an employer including payroll taxes and other liability.
The reason is that the