Hiring family as a caregiver

[Anonymous]

Has anyone ever hired a family member as a caregiver in an official capacity? We have a family member who has few resources and is currently unemployed, however already serves as a significant caregiver, albeit in an unofficial capacity. Is it better to gift her compensation or create some type of payroll so she can demonstrate a work history? If you have been in this situation, can you share some insight on the logistics and how it worked out? TIA!

[Anonymous]

Anonymous wrote:Has anyone ever hired a family member as a caregiver in an official capacity? We have a family member who has few resources and is currently unemployed, however already serves as a significant caregiver, albeit in an unofficial capacity. Is it better to gift her compensation or create some type of payroll so she can demonstrate a work history? If you have been in this situation, can you share some insight on the logistics and how it worked out? TIA!

I think it's a great idea if you feel she/he is a good caregiver. It can be a thankless job and you can feel taken advantage of by family members who don't do their share. Do you think the person would do a competent job? Is the person interested? I would backpay as well for all the hours the person already put in and if the person has not planned well for retirement maybe set up a retirement fund. You would need to talk to a lawyer about how to set up pay, retirement, etc in a legit way that includes paying taxes, sick days, etc or perhaps paying out of the estate wouldn't require this-no idea. What would be your backup plan? What is the plan as needs increase to beyond a work day?

If the person is caring and does a decent job and wants the job, it's a great situation! You know the parent will get ideal care. Just have a plan if things worsen or if the parent becomes difficult and still show gratitude and check in with the caregiver. It's a hard job even when paid.

[Anonymous]

If you pay her officially, you will have to pay taxes which will take a huge chunk out of it. She will get way more money under the table, and you could always tell places that she was an unpaid but reliable and competent caregiver.

[Anonymous]

There may be an issue of her (the family member who's giving the care), her social security. She has to have work history for her to claim that for herself eventually, in years to come.

[Anonymous]

Anonymous wrote:Has anyone ever hired a family member as a caregiver in an official capacity? We have a family member who has few resources and is currently unemployed, however already serves as a significant caregiver, albeit in an unofficial capacity. Is it better to gift her compensation or create some type of payroll so she can demonstrate a work history? If you have been in this situation, can you share some insight on the logistics and how it worked out? TIA!

I haven't done it for eldercare, but I hired a family member for child care. I paid legally, and did all the same paperwork I'd do for any other household employee. I paid the same rate I would have paid a nanny.

One thing to think about is the logistics at things like family gatherings. So, for example, if your loved one is used to this person always being the one to help them in the bathroom, and it's Christmas Day and you're all together, how does that play out, does that person get paid? Do they come and do things for free and not get a day off?