Alzheimer's Care

Wednesday 29 June 2016

Choosing a Caregiver – Agency vs. Private


When choosing a caregiver, you must decide between an agency caregiver and a private caregiver.  There several things you should consider.

Private caregiver

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

Agency caregiver

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.

2 comments:

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