The Risks of Agency vs. Private
- Limited Accountability - When privately hiring your caregiver, you have no recourse if they do not show up for a shift, and there is rarely a back up plan when this occurs.
- Reduced Background Visibility - Background checks can be confusing, expensive and time consuming. Most individuals don't even bother. It's a big gamble to let a stranger in your home if proper precautions are not taken.
- Withholding (Trust Fund) Taxes - Any individual who employs a private caregiver directly, will be responsible for collecting and remitting the following to the Internal Revenue Service and the Department of Revenue for your state:
- The employee's social security and Medicare taxes
- Federal income tax withholdings
- State income tax withholdings. You should always consult with your accountant or other tax advisor regarding this liability.
- Employer Social Security and Medicare Taxes - If you employ a private caregiver directly, you will be responsible for remitting to the Internal Revenue Service the employer's social security and Medicare taxes. This is approximately 7.65% of an employee's gross wages and is paid by the employer in addition to the gross wages. You should always consult with you accountant or other tax advisor regarding this liability.
- Federal and State Unemployment Taxes - If you employ a private caregiver directly, you will be responsible for remitting to the Internal Revenue Service and the Department of Economic Security unemployment taxes. This is currently about 2.70% of the first $7,000.00 of an employee's gross wages. The employer is to pay this 2.70% tax in addition to the gross wages. You should always consult with you accountant or other tax advisor regarding this liability.
- Liability for Employee Job Related Injuries - If you employ a private caregiver directly you will be responsible for any job related injuries suffered by your employees. To protect yourself, you should contact your insurance agent to discuss the availability and cost of workmen's compensation insurance.
- Evidence of Professional & General Liability Insurance and Bonding - If you employ a private caregiver directly, you should make sure that they provide you evidence of their professional and general liability insurance and coverage by a fidelity bond. These types of insurance will provide you a source of recovery in the event that you suffer any loss or damage due to your employee's misconduct. You should contact your insurance agent immediately to discuss the advisability of such insurance.
The Security and Comfort of an Agency
- Twenty-Four (24) Hour Care Management and Supervision - AHCS has been RN owned and managed since 1998. With a dedication to quality of care, periodic home visits to the clients house are scheduled by an RN to ensures that our clients are receiving the best care. In addition scheduling coordinators are on call twenty-four (24) hours a day, seven (7) days a week, to handle any care related issues that might arise.
- Extensive Background Checks on Caregivers Prior to Employment - If you hire a private caregiver directly, you are letting a stranger into your home. They may have been convicted of theft and other crimes, do not have the appropriate skill level, and frequently don't show up when you need them due to a variety of reasons. Your safety and quality of care should always be your first priority. As an experienced professional home care company, we have heard many horror stories of individuals who have hired privately. Major concerns include :
- Caregivers not showing up
- Physical Abuse
- Tax Compliance - When you hire Affordable Home Care Solutions to provide care for you and your loved ones, you are not responsible for any taxes or withholdings.
Protect you and your home by hiring an agency where employees are Bonded & Insured. In Arizona "ALWAYS" hire a company who is a current member of the National Private Duty Association, Arizona Non-Medical Home Care Association, and the Better Business Bureau. At Affordable Home Care Solutions, extensive measures are taken to ensure that our caregivers are experienced, honest, and qualified to take care of you and your loved ones.