Hiring an in-home caregiver can provide many benefits for your family. Yet, it is important to fully understand your legal and financial obligations as a household employer. During the hiring process, you can choose to either work with an Oklahoma home care agency that will manage the financial obligations as the employer. Alternatively, you can choose a home health aide who works as an independent caregiver. If you choose to go the independent route, here is what you will need to do to make sure you meet your legal obligations as a household employer.
Determining if Someone is a Household Employee
According to the IRS, the difference between a household employee and an independent contractor depends upon whether or not you control when and how they work. Since your in-home caregiver will need to follow a set schedule and perform tasks as you request, then they will typically be considered a household employee. However, your spouse or child who is under 21 years of age is never considered a household employee, even if they receive compensation.
How to Verify Legal Authorization to Work in the United States
As a household employer, it is illegal for you to hire anyone who is not either an American citizen or legally authorized to work in the United States. To protect yourself, you will need to complete a Form I-9 Employment Eligibility Verification form to keep in your Records.
Paying Employment Taxes
Household employers are responsible for withholding and paying social security and Medicare taxes if they pay $1,900 or more to an employee within a year or $1,000 or more in a quarterly period. It may also be necessary to pay federal employment taxes as well. Tax rates can vary according to the salary you pay your employee and the state you live in, so be sure to find out the specific amounts for your situation. Be sure to keep records regarding the amount of taxes withheld from each paycheck along with all cash and non-cash payments you make to your in-home caregiver.
Protecting Your Family
As a household employer, you may also be responsible for things such as workers’ compensation should your independent caregiver become injured in your home or while on the job. To protect yourself from these issues, as well as having to go through the complicated process of filing caregiver taxes, consider working with a reputable hourly or live-in care agency in Oklahoma.
Home Care Assistance of Oklahoma serves the local Oklahoma City and Edmond communities. We understand the process of finding care for a loved one can be overwhelming without the right resources, and want to do everything possible to relieve any feelings of stress. When working with our home care agency, you can rest assured knowing all of our experienced in-home caregivers are bonded, licensed and insured, and we take care of all caregiver taxes so you don’t have to worry about the complicated and time-consuming tax filing process. We also handle all aspects of workers’ compensation so you are never responsible for payment to a caregiver should he or she become injured on the job.
To learn more about our advanced caregiver hiring and training process, our comprehensive care services or to schedule a complimentary, no-obligation consultation with a friendly Care Manager, call 405-285-4191. We look forward to hearing from you.