When choosing a caregiver, you must decide between an agency caregiver and a private caregiver. There several things you should consider.
Employee of the client, they are not a 1099 contractor
Client is responsible for employer’s share of social security, unemployment insurance and worker’s compensation
Client is responsible for federal and state tax deposits based on the caregiver’s pay
Client is responsible to background check the caregiver(s)
If a caregiver calls off, the client must coordinate for another caregiver to cover
Employee of the agency
Agency pays taxes, unemployment insurance and worker’s compensation
Agency is responsible for background check of the caregiver
Agency has multiple caregivers and can cover when a caregiver calls off
Agency has liability insurance to cover the caregiver for theft or damage
Although a private caregiver may have a cheaper hourly rate than an agency caregiver, when the added cost of unemployment insurance and worker’s compensation are added to the cost, it may end up being more expensive to have a private caregiver.