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 cost of unemployment insurance and worker’s compensation are added to the hourly rate, it may end up being more expensive to have a private caregiver.