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Please pls also be aware that as employees they are covered under FLSA which is labor law that delves into required breaks, 40 hr week, overtime, safety issues etc. CG often have their own health affected in that they get hurt doing transfers as the elder is heavy or dead weight. There is risk if you hire a caregiver and do not pay attention to all this that it could be way waaaaay costly. Why? It’s because there is a lil cottage industry of attorneys who seek out cases like this. They find clients in lower income communities where often caregivers live. It’s slam dunk lawsuit most of the time as you did not do record keeping and FICA needed. And you will do a settlement with atty fees because their atty will seek a lien placed on your home via a judgement when they win the case.
Hire an agency. The reason why agencies cost 20-25% more is because they do all this bookkeeping plus workmans comp AND can provide for backups if needed.
To be an Independent Contractor has a series of questions to qualify. In home caregivers won’t meet it as you control what work is done, how it is done and where it is done. Not them. Also they would need to have other clients they invoice to provide similar type of service and they file as Self employed, or as LLC or Inc. Really hire an agency.
Those folks who hired you to come into their home to caregive are having you there as a “household employee” under how the IRS views this type of employment. Not contract labor but household employee. So they file and pay all aspects of your FICA and also have to do whatever else is needed under your States labor laws. Like workmans comp coverage. Like having a required break after so many hours. If you are driving their cars, they need to do a rider on their auto insurance for this. All you need is 1 slip n fall, 1 fender bender, 1 moving them and you strain something, will be problematic. If this happens and you seek to get compensation, it will snowball into problems for all involved. If they know you don’t keep records, they will ghost you and too bad so sad that you have doctor bills from lifting their MeMaw.
the only way you could be contract labor is if this is an actual business, with multiple clients that your provide the same services for; have invoices done for each client based on timeline with breaks (labor laws require breaks); do whatever licensing needed; and file IRs and State taxes on your biz as Self-employment or LLC or Inc.
Otherwise go work for an agency, so that you have all this taken care of. So you add to your future SSA retirement income and have benefits. Or find a family who respects that caregiving is a skill that should be compensated for and legally.