Paying cash for elderly care - implications?

[Anonymous]

Hi all. My dad has kidney failure and is on dialysis 3x per week out of the house. My mom needs help lifting him out of his chair, getting him in the car and a few other things.

They can't afford paying for services so me and my siblings are. Going with an agency is $25 per hour (they do not live in DC). On Care.com however, we can find people much cheaper who we can just pay cash. It's me and my siblings putting our piggy banks together to try to make this work to help my mom as this is basically killing her to.

Anyone done this before and figured out how to handle liability? If we are paying someone cash and they are injured, what happens? Can we do anything to protect ourselves?

Thank you!

[Anonymous]

You can probably get some kind of liability insurance on your home owners. People do it all the time.

[Anonymous]

If someone gets hurt caring for him it’s going to cost you a whole lot more than paying an agency. At the very least be sure you have adequate insurance to cover on the job injuries.

[Anonymous]

The best way to protect yourselves is to pay legal.

Caregivers cannot be 1099 employees as you make the schedule. You can read up on the IRS website about this.

I'm not sure what state you are in? One of Mom's caregivers got letters from IRS as she was paying other caregivers
under the table for a different client. Head caregiver got
cash from client, head caregiver gave caregiver cash,
IRS is after head caregiver for back taxes and penalties
I think she owes around $12,000.

We are paying direct (no agency) but going through
a payroll service that takes out taxes and workers comp.
Our workers comp bill just came in for the year.
Our yearly workers comp bill in Maryland is $300.00
that covers round the clock caregivers for the year.
We've already had one injury....a farmer ran
into our car that caregiver was driving to get
Mom's groceries.

We are starting at around $15.00. Taxes come out of that.
Payroll service cuts the checks each week.

If a short term situation....say 6-8 weeks you might
get by with just paying cash. If much longer like an ongoing thing then the issue is the IRS. Legally
the IRS does not allow caregivers in the home to be
called 1099 employees since you schedule them.
They are by default W2 employees.

The risk is IRS finds out and you owe back payroll taxes.
It is best to get workers comp to cover in case of injury.
Our fee is $300 per year and that is covering around
8 caregivers around the clock.

Check with your Doctor but you may be able to
get a scrip for a special chair and/or hoist for bed
to make things easier on Mom.

Paying cash you have potential IRS liability and
if someone gets injured I think it depends on the
laws of your state.

Best of luck, I know it is tough.

[Anonymous]

Also, depending on your state your Doctor may
be able to prescribe a home health care agency
to come out and help Mom 3x per week under
Dad's insurance.

Our Doctor has prescribed Mom an RN and a PT to
come out for 12 weeks under Mom's insurance.

I'd see what your Doctor says. If you can get a
CNA to come out under Dad's insurance 3x per
week that would be a big help. I think their
are special services available for kidney patients
but you need to talk to Dad's doctor.

[Anonymous]

Anonymous wrote:The best way to protect yourselves is to pay legal.

Caregivers cannot be 1099 employees as you make the schedule. You can read up on the IRS website about this.

I'm not sure what state you are in? One of Mom's caregivers got letters from IRS as she was paying other caregivers
under the table for a different client. Head caregiver got
cash from client, head caregiver gave caregiver cash,
IRS is after head caregiver for back taxes and penalties
I think she owes around $12,000.

We are paying direct (no agency) but going through
a payroll service that takes out taxes and workers comp.
Our workers comp bill just came in for the year.
Our yearly workers comp bill in Maryland is $300.00
that covers round the clock caregivers for the year.
We've already had one injury....a farmer ran
into our car that caregiver was driving to get
Mom's groceries.

We are starting at around $15.00. Taxes come out of that.
Payroll service cuts the checks each week.

If a short term situation....say 6-8 weeks you might
get by with just paying cash. If much longer like an ongoing thing then the issue is the IRS. Legally
the IRS does not allow caregivers in the home to be
called 1099 employees since you schedule them.
They are by default W2 employees.

The risk is IRS finds out and you owe back payroll taxes.
It is best to get workers comp to cover in case of injury.
Our fee is $300 per year and that is covering around
8 caregivers around the clock.

Check with your Doctor but you may be able to
get a scrip for a special chair and/or hoist for bed
to make things easier on Mom.

Paying cash you have potential IRS liability and
if someone gets injured I think it depends on the
laws of your state.

Best of luck, I know it is tough.

This was very helpful, thank you. What payroll service are you using? Do you get the policy for worker's comp through them or need to get the policy first?