written by Sue Susskind  

Valentine’s Day is quickly approaching and many of us are already trying to think of that “ perfect gift.” For some of our loved ones, the best gift you could possibly give them is their continuing independence and the ability to remain in their current home.

Often, families suffer for some degree of geographical separation, or have work and family related responsibilities of their own and cannot provide the helping hand a loved one needs. It then becomes necessary to hire a caregiver from an outside source. As you search for that caregiver, keep in mind the age old adage that “if a deal seems too good to be true, it probably is.” The National Private Duty Association outlines the risks below of using companies that employ independent contractors, instead of directly hiring their employees.

1) Lack of an employee/employer relationship – The care giving relationship is between the client and the caregiver. The agency merely places a caregiver in the person’s home, tells them when to be there. They do not direct the care of the client, and no supervision or training is provided.

2) Insurance – Caregivers that are Independent Contractors are not covered by a company’s liability or workers’ compensation insurance, they must provide their own. Nearly every state mandates by law that insurance must be in place. If there is no insurance in place, and the caregiver sustains an injury while on the job, this can cause financial hardship for everyone involved. A common assumption is that homeowner’s insurance will cover this, but more often than not, employees working within a home are excluded from Homeowners’ policies.

3) Taxes – Clients receiving care are responsible for making sure that taxes are paid since they are the caregiver ’s employer. If the taxes do not get paid, the government can sue for back taxes, interest and penalties which can become very costly. For the caregivers, if they do not pay into social security, they will be left with problems when they age, and no protection is in place for the periods they were employed.

4) Abuse – While we would to think that all who provide care to the elderly are caring people, there are occasional caregivers who might choose to take advantage of or otherwise exploit their clients, especially when there is a degree of cognitive impairment. When you hire an independent contractor as a caregiver, appropriate background checks may not have been performed to determine their track record, or a background check may have not been performed at all.

Today, more than ever before, the need for private pay home care services is growing and this trend is ly to continue in coming years. While we might all prefer to personally provide the care that our loved ones deserve, the realities for many of us are that we can barely keep up with our own jobs, our own children and their needs. Each of us will need to make the best decisions as to what ...

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