Hiring a caregiver

Just Bill

Well I did it. I signed on to care.com where independent contractors are matched with care needs. Great business model. It is a subscription site so you can pay monthly quarterly and annually. I paid for one month $38.95. I found someone that matches our needs and we meet her tomorrow. Her first day will be on the 16th so I can golf. My wife is totally on board, she can't wait for this to happen. I waited a week to pull the trigger on this asking her everyday are you still ok with this ? A week of yes's and here we are. I wrote a post on my emotional lows being lower but my highs are higher. I have endorphins poring out of my ears. The pendulum has swung the other way for a while.

Twin Mom

I hired someone I found on Care.com back in May.  They have been a god-send.  I didn't find anyone with the ad I placed on the site...but I started just looking through all the profiles of people looking for a job within a 15 mile radius.  I sent a "form" letter to each person who looked like they might be a fit.  I sent about 50 and got responses from about 10.

   The first person I did a personal interview with has been amazing.  I took a 10 day respite in June which was sorely needed....and now she is working 2 partial days a week, so that she stays in our loop.  I am hoping for some 3 day weekends periodically just to recharge my dying battery.

I hope you are as lucky.  I had tried Care.com about a year ago and had come up empty handed.

Cherjer

Just curious...is that the hourly cost?

Just Bill

No that is a monthly cost for access to their database and software to match independent contractors to clients. I only paid for one month because I'm pretty sure I won't be hiring different people every time. If we find someone we like we will stick with her. The hourly rates vary from $15-$45 depending on skills and services. They are independent so you pay them directly instead of an agency.

ImMaggieMae

Bill, how do you handle the withholding, taxes, social security, etc., with care.com? Do you have to do the paperwork or is that handled through care.com?

Just Bill

If I were a for profit business and I hired an independent contractor I would fill out a 1099 form telling the IRS how much they were paid and they do their own taxes. Since this is a household and the independent contractor isn't making me a profit we don't have to worry about it. They fall under the same category as a Gardener, housecleaner, babysitter or pool guy. You just pay them by cash or check and don't worry about it.

Twin Mom

I pay our person directly, but at the end of the year they are considered a household employee and I pay their withholdings as part of my tax return.  I do have to file quarterly unemployment taxes with the state though.

Just Bill

I forgot to mention I live in California your tax laws may be different in other states.

Just Bill

I'm sorry everyone I just gave bad advice. You can't get sick without being taxed to death on top of it. Of course there are penalties for caring for your loved one. Due to baby boomers getting old there is an employment boom for caregivers. Why wouldn't the IRS try and steal as much of that as possible. So be careful out there the correct answer is yes worry about taxes too. Dementia isn't hard enough I have to be an accountant for the government on top of that. Thank you TM for making me google that.

saltom

I also live in California and was told at a caregiver workshop that if the caregiver worked over a certain number of hours per quarter, I would be responsible for Social Security and workmen's comp and I think need to set up a tax number with the state as an employer.  If the caregiver were an independent employee she/he could set their own time much like a handiperson hired for a repair.

ImMaggieMae

So does it end up being more expensive, less expensive, or about the same to hire a caregiver directly and pay all the tax related stuff?

Just Bill

Being that I am an independent contractor myself I tend to hire independent contractors. I would rather not deal with a 3rd party. This is my first experience so I am taking one day at a time. The interview went well today the 2 of them hit it off very well. Saturday is a go. I have being doing the 24/7 thing for about 4 months now. For mental health reasons I needed a caregiver right now, so I followed the shortest path I could find to meet that objective. I didn't go the agency route so I cannot comment on how that works.

Old89

Care.com has a payroll service to take care of the withholding.  If you are uncomfortable with the risk of being audited or having the independent contractor claim they were an employee it is a pretty convenient solution.   I do it for a caregiver who also is a full time employee elsewhere. I do it out of an abundance of caution.

Twin Mom

For me the cost is about the same as it would be paying an agency.....but I am paying the caregiver about $6 an hour more than most agencies pay, and I can control who comes into my home.

ImMaggieMae

The going rate around here using an agency seems to be $35 an hour with a 12 hour per week and 4 hour per day minimum. We’re in California. We had to sign an agreement stating that we would not try to hire the caregiver directly. It’s expensive, but makes such a big difference for my sister and I who are his caregivers. He liked the hired caregiver right away and she provides some social interaction, someone else to talk with.