There are several private duty home care options...
Home Care Agencies
Home Care agencies
- Typically screen, train, and supervise caregiving staff.
- Caregivers are employees of the agency and not independent contractors.
- Withhold income taxes for Social Security, Medicare, and State and Federal Unemployment Insurance
Home Care Registries
Sometimes referred to as Domestic Referral Agencies (DRAs); registries :
- Do not employ their caregivers, they are treated as independent contractors
- Do not withhold nor pay any payroll taxes for their caregivers
- Do not carry workers' compensation insurance for caregivers
Because of these decreased operating costs, Home Care Registries are able to charge less for services the Home Care Agencies.
In some cases, clients assume responsibility of employer, subjecting
them to liability and penalties for employment taxes and workers'
compensation. California law requires certain disclosures to be made
to clients as to the employment relationship between the registry and
the caregiver, so these risks may be considered.
Hiring Privately
Independent providers of care such as
companions or aides can be hired privately by the client. However, it
can be difficult for clients to effectively select and screen
individual caregivers. Furthermore, if an employer/employee
relationship is established between the client and the caregiver, the
client will be responsible for all state and federal payroll taxes as
well as workers' compensation insurance. Clients should review IRS and
EDD guidelines to determine their obligations as employers when hiring
a caregiver privately.