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.
