work as caregiver for a family who is trying to claim I am independent contractor vs. employee
I believe family is trying to get out of paying taxes, and put the entire tax burdon on the caregivers they hired. We care for 2 seniors, that are both heavy care, one with Alzhiemers, the other is forgetful. They need 24 hr care and are well off and can afford it. Has anyone come across this problem before?
We have an article on our blog that talks about this situation. It covers it more from the point of view of the person hiring a caregiver and what their responsibilities are in regards to taxes etc, but it should help.
In the article there is a link to a Wall Street Journal story that gets into more of the financial details. The link is below.
http://www.24hourangels.com/Blog/post/Hiring-an-Elder-Care-Giver-what-to-look-out-for.aspx
I would suggest calling a payroll company who for a small monthly fee will do all the paper work and issue a regular paycheck and take care of the taxes involved. Only certain people who take care of multiple patients and are truly independent should be given independent contractor status. The IRS flags these filings with great zeal. The state labor commissions also look on these with interest if you are brought before them by an employee.
My family and I have recently moved to another state. My former mother-in-law in which I have guradian ship of was in a home prior to us moving. My daughter and I are now taking care of her which is requiring 24 hr care. She is in the moderate stage of Alzheimers. The trustee of her estate in Canada was placing the monthly amount into her account here in the states to pay for her to be in a home. I have requested to continue the amount of money they were paying the home so I may pay my daughter and also use for other things she may need. They are requesting a breakdown of what I will be using the money for. I don't really know how to do a breakdown, they didn't ask for the home to provide one but yet they want one now. Will I need to take taxes out when paying my daughter. more
I work as a caregiver for one client that suffers from dementia and is not longer able to walk or toliet herself, absolutely 24/7 care. The family hired a number of caregivers initially for the one client so as to prevent burnout and have adequate coverage. I had to ask for a 1099..some of the other caregivers didn't want one for 2010....I believe now the family is telling us 1099's will be provided. HOnestly is the real issue here...we cannot control what the family does with the client's money but WE as caregivers need to contact Unemployment or Labor offices to see what status you fall in. I "thought" at first this was like a babysitting job but I learned it is far more intense than that....and I was collecting unemployment at first because I did not understand what self-employment meant. I reported this to Unemploymentand they are billing me for the checks they sent me while being a caregiver......I have a clear conscience now that if the family is ever audited I am legal. What the family answers too, is their accountability. Hope this helps.
