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Caregiver Compensation – the Benefits of Doing it Right

When hiring care, some families might be tempted to pay under the table to save a few dollars or avoid the hassle of taxes. While this may seem like a straightforward solution, by not officially employing a caregiver, families forfeit the chance to provide essential benefits such as workers’ compensation, health insurance, and unemployment benefits. If a caregiver gets injured while on the job, they may find themselves in a tough spot without any options for medical coverage or lost wages, which can create stress for both the caregiver and the family.

Another important consideration is the potential for tax issues. Both caregivers and families have responsibilities when it comes to taxes. Paying a caregiver off the books can lead to tax evasion, putting both parties at risk for penalties and fines from the IRS. Caregivers who don’t report their income may face their own tax liabilities, which could lead to audits or other unwanted attention. What starts as a seemingly easy way to save money can quickly turn into a legal headache, making it essential to understand the implications of under-the-table payments.

Lastly, there’s the matter of care quality. When caregivers are hired officially, they tend to be more committed and accountable in their roles. Families who opt for under-the-table payments might inadvertently compromise the quality of care their loved ones receive. Overall, the risks associated with paying caregivers under the table far outweigh any short-term savings. By following legal employment practices, families not only protect themselves and their caregivers but also ensure a higher quality of care for their loved ones. Holistic HomeCare Associates is committed to ensuring that families are not only matched with great caregivers but have all the tools and resources to hire them seamlessly. To learn more, schedule a call 646-240-4888.