We found a caregiver, who only goes to my parents home once a week for about an hour--mostly to help my dad shower (he'd been refusing my mom's requests that he shower and she had given up trying. My dad has dementia and functions relatively well.) The caregiver is not employed by an agency. Anyway, my parents' income is minimal and they are not required to file income tax returns. My mom has been paying the caregive $10 cash per visit. Based on what I've read, I suggested she use a payroll service to pay him, which she refuses to do. The caregiver has said he will sign a "contract" that holds my parents harmless, but I've read the horror stories of caregivers who do an about-face and end up reporting the person they'd been caring for to State agencies, which means trouble. It seems that $40/month is such a miniscule amount that it shouldn't matter, but on the other hand, I sure don't want any legal issues to come about. Any suggestions?

quote:

Originally posted by dadsdaughter:
We found a caregiver, who only goes to my parents home once a week for about an hour--mostly to help my dad shower (he'd been refusing my mom's requests that he shower and she had given up trying. My dad has dementia and functions relatively well.) The caregiver is not employed by an agency. Anyway, my parents' income is minimal and they are not required to file income tax returns. My mom has been paying the caregive $10 cash per visit. Based on what I've read, I suggested she use a payroll service to pay him, which she refuses to do. The caregiver has said he will sign a "contract" that holds my parents harmless, but I've read the horror stories of caregivers who do an about-face and end up reporting the person they'd been caring for to State agencies, which means trouble. It seems that $40/month is such a miniscule amount that it shouldn't matter, but on the other hand, I sure don't want any legal issues to come about. Any suggestions?

Boy...as a paid caregiver, there are a lot of issues on our side that can come up with families that scare the crap out of us Like families saying, "OMG, we would never hold you responsible if...." Then when it happens all shit hits the fan. So please looks at both sides of the issue before you make and judgments please.

You pay her $10 to bathe your father and think that's a lot??? Is he not worth much??? Sounds kind of selfish on your part. Most paid caregivers get at least $10+/hr. If you have legal concerns, then go through an agency and stop your worrying. I wouldn't come in and bathe your dad for $10 and I AM A TRUSTWORTHY, COMPASSIONATE, CARING, LOVING CAREGIVER...

Whoa!!!! I never said $10 was a lot; I realize that's a bargain. I'm only concerned for my mom's liability here.

It would, of course, be best to talk with a lawyer. If your parents have minimal income, they may be able to find one who does pro bono work. I'd think their question could be answered pretty quickly, too.

First blush: your parents' income tax returns isn't the issue. If they are considered to be employers, and they reach certain pay thresholds, then they are required to deduct certain taxes from the caregiver's pay, pay certain taxes for the caregiver, and file certain returns.

See: http://www.householdemploymenttaxes.com/

However, It's unlikely that your parents will reach the thresholds for this requirement. The lowest threshold I see on this particular list for state taxes is $500 per quarter (3 months.) For Social Security / Medicare, wage thresholds are $1400 paid to any one household worker in the calendar year. $40 per month is $120 per quarter, and $480 per year, so your parents would be below both thresholds -- unless they live in a state with reeeally low state income tax thresholds.


Another issue would be liability for any harm that might come to the caregiver while working in your parents' home -- slipping on a wet floor, pulling a muscle, etc. Check with your parents' homeowners insurance. Their policy might require special provisions to cover a home worker. I know mine does.

That website mentions some other things to think about, too.

JAB--thank you for the link and your helpful comments; appreciate it!

Count yourself blessed. I've tried desperately to find someone to bathe my mother--my least favorite job--and $100 plus gas mileage was the lowest quote I received (we live in a rural area).

quote:

Originally posted by dadsdaughter:
Whoa!!!! I never said $10 was a lot; I realize that's a bargain. I'm only concerned for my mom's liability here.

I am sorry if I was abrupt with you. I apologize. I suggested an agency as they are bonded. Your parents then can deduct the cost as a health care expense if they are in a position to file income taxes.

Again I apologize..

I'd be above board and put something in writing about how much was paid to this caretaker. Thankfully we don't have this situation in our family.

My thoughts, if you do not post on your taxes and the caretaker does, trust me it could come back to haunt you. When IRS came out to audit my husband with his own business, they asked about employees. Yes he had 2 and he showed our records for payments, etc, and hopefully the 2 employees were also upfront....which they we in the end. Worked out fine for us but when dealing with others, you need to cover yourself as can't control what they will do.

You could call the IRS anonymosly and they can tell you proper procedures. Just cover yourself!!

Best of luck!

DD--
in many states, if your parents are low income enough to not need to pay income tax, the Department of Elder Affairs (called different names in different states) provides free or almost free aides for some hours each week.

They may also provide meals on wheels (tell them your parents are kosher so the food is better!) or housecleaning as well-- anything that helps the elders live independently (or even with you).

I wouldn't worry about $10/week under the table... I think this is only a big issue if your parents were wealthier (apparently 70% of folk don't pay the nanny tax. One can argue that this is wrong but going after poorfolk isn't the hugest priority ).

ttt