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Paying caregivers cash for 24 hour care - Is this legal?


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I am trying to help an elderly friend of mine find out if the way she has been paying for her live in home care is legal.

Each week she simply gives the caregiver a check for cash and does nothing more....

Is it legal to do this withoug taking out federal taxes, ss taxes, state taxes etc??? 

She has become very worried about this and I would like to ease her mind if possible. 

BTW - She is a Michigan resident.

Any advice would be greatly appreciated.


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I live in California and have been paid by check for three years to live in and care for a dear lady with Alzheimers, Parkinsons, and MSA.  When I file my taxes, the family that pays me had requested that I file as self-employed and pay the IRS that way.  Of course, the IRS told me the first year that I did this, that I was NOT self employed, but if I tried to not file there might be "repercussions" where I live....Of course, I chose the easy route and paid my own taxes.  Anyway, now the family has chosen to move this lady to a skilled nursing facility as we are no longer able to meet her needs at home, and I am out of a home and the unemployment that I should be able to draw.  I urge your friend to step up and take the high road, and pay for her care the proper way.  Those friends or employees deserve that after all. 

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