What is an independent caregiver?

The term independent caregiver is commonly used to describe a home care professional who does not work for an agency. According to the IRS, if a privately hired / independent caregiver is paid more than $2,100 per year (in 2019), they are considered a household employee, not an independent contractor.

What is covered under the Fair Labor Standards Act?

The Fair Labor Standards Act (FLSA) is a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

What is an informal caregiver?

Informal caregivers provide regular care or assistance to a friend or family member who has a health problem or disability.

What is the difference between a caregiver and a home health aide?

A caregiver usually is a family member that is paid to look after a sick child, a person with disabilities, and/or elderly. A home health aide is usually someone that has obtained some training to provide assistance with activities of daily living (ADLs).

What is overtime Alberta?

Like most provinces, Alberta’s overtime pay rate is 1½ times an employee’s regular pay rate. Employees in Alberta qualify for overtime pay after working more than eight hours in a day or more than 44 hours in a week (whichever is greater). This is sometimes known as the 8/44 rule.

What caregivers should not do?

If you’re a caregiver, here is my not-to-do list for you.

• DO NOT shy away from sharing with others that you’ve become a caregiver.
• DO NOT pretend that everything is like it used to be; you need time to grieve the loss of your old life.
• DO NOT attempt to be Super Caregiver.

Is my private in-home caregiver a household employee?

Yes, your private in-home caregiver hired to care for Mom or Dad is a household employee in the eyes of the IRS. A caregiver who works in your home that you pay more than $2000 per year (2017) means tax obligations for your family.

Should you hire a caregiver through an agency or agency?

Hiring a caregiver through an agency might start looking a lot more attractive when compared to managing payroll, taxes, and insurance matters. However, as the employer you will have a great deal more control with the selection of caregivers and care of your loved one.

Is a home worker an employee or an independent contractor?

If you decide to hire an individual — not a company or agency — to work in your home, the question arises as to whether the worker is considered your employee or an independent contractor. The answer will make a big difference in which tax laws and other rules you have to follow.

What happens if you hire an illegal immigrant as a caregiver?

A form called the I-9 should be kept on file for the employee. Fines ranging from $250 to $2,000 can be imposed on those who hire illegal immigrants. Also, be sure to have a written agreement with the caregiver to avoid potential wage and labor disputes.