Tax Responsibilities when Hiring a Home Health Aide Directly Versus a Home Care Agency
Facts on Aging in Place and Hiring a Caregiver Direct
For those wishing to age in their homeplace, hiring a personal caregiver is a great option. If you choose to work with a home care agency or a nurse registry caregiver, there are many benefits that come with a personal care assistant. The agency's scheduler is in charge of ensuring the caregiver is licensed and does show up to work. Often times caregivers wish to hire a home health aide without utlizing the services of a home care company and family members should realize the pros and cons to this direct hire.
Aging in Place at Home Versus Senior Housing
Choosing the home assistance option over senior retirement communities allows for personalized care in the comfort of a home environment. Familiar living and fond memories can mentally keep a loved one thriving. As a family member caring for an aging parent, do you know what you are responsible for when it comes to payroll taxes and social security taxes? Keep reading to find out more about this care plan and your tax responsibilities when hiring a home health aide for seniors.
First of all, there’s no easy answer to such situation. Senior living rules can be complicated. In general, all aging Americans should know that Medicaid and Medicare don’t cover the home care services expenses, but there might be exceptions like the Medicaid waiver programs, as well as the Medicaid nursing home transition program. These caregiving programs have different eligibility criteria in different states. That’s why the elderly needs to inform themselves about the criteria.
Hiring a Home Health Aide Directly Without Utilizing a Home Care Agency or Nurse Registry May Be More Complicated
Usually, the home health aide is considered an employee of those who hire them. So, if you’re the one who hired your Mom’s aide, that means that you’re the one responsible to withhold and pay for all of the employee taxes, like social security taxes, payroll taxes, and other mandated withholding like unemployment insurance.
However, you can avoid all these by hiring a home health aide through a professional home care agency. This way, the employer of the aide is the agency, meaning you’ll have nothing to do with the tax rules or additional care costs.
As you already know, hiring a home health aide through a professional agency will have a higher senior care cost. When using the services of an agency, you’re actually paying a surcharge because someone else is doing a background check and filling in all the paperwork. Nurse Registries will also require professional liability insurance for their caregivers. They check references as well and have an in-home assessment which provides you the chance to meet the staff, discuss costs and ask everything you need to know.
There are people who choose the option to hire aide themselves without filling in Social Security and tax forms because they decided to pay the worker under a different arrangement The Internal Revenue Service will catch anyone who’ll try to do this.