I know this has been covered before, alas I don't have the energy to search, bear with me please.
My understanding is if a private doesn't earn more than $2700 in a year (for 2024) they can be classified as independent contractor and a 1099 misc can be issued. Otherwise they are an employee with the payroll headaches involved in that.
I would hire thru an agency but my mom uses a feeding tube. Super easy to train on, yet most agencies will charge an arm and leg for the level they think is required to do this. Looking at maybe 10 hours a week to give my dad an extra break and my mom too he's a lot even tho she needs the care! (I'm there for several hours a day already) . And it would be nice to train the person to use it in case what he needs to do overlaps with one of her scheduled formula feeds. And if one of us gets sick! This time last year I was laid up with covid for 2 weeks. That would cause real problems now given the state of her physical and mental health (very prone to anxiety). I know that number of hours will quickly add up to and exceed the threshold.
I'm in MA. As I'm writing this I think I may just use an as agency, I can't start getting into workers comp and worrying about getting or someone getting injured. Would be nice to have one person she/they get to know and trust tho as opposed to rotating and never know what you get...
Thoughts?
I did this kind of work for 25 years before going into the business end of it. Believe me every homecare worker has a side-hustle in cash at some point because homecare is famous for being unreliable and being an agency or nursing home employee doesn't pay much. For ten hours a week any CNA is going to be happy to get paid with the envelope system. No checks, no paperwork. You'll get a good person who if they don't already have experience with feeding tube and care (most of us do) they will train quickly from you.
You'll be getting someone to help out and the person you hire will be making a nice little chunk of change for themselves that no one's getting a piece of. For ten hours a week, go this route.
Is it about where to hire? Is it about what tax forms to do when you hire someone?
I am guessing it is about taxes; anyway, that's where I will start.
Whether you are hiring anyone for one thing or for another, or whether they are independent or through an agency, you are responsible for IRS rules.
If hiring through an agency check out rules with them.
In general, IRS and tax rules are easy to find through online. AARP has tax tips and guidelines for caregivers, also. Found this online with a click:
"IRS rules for hiring a caregiver12345:
If a caregiver earns more than $750 a quarter or more than $1,900 a year, they are considered a household employee, and taxes must be paid accordingly.
If a privately hired / independent caregiver is paid more than $2,700 per year, they are considered a household employee, not an independent contractor.
If a caregiver qualifies as an independent contractor, they are responsible for reporting the income received and paying appropriate taxes.
For tax purposes, someone is considered a household employee if you dictate their work in and around your home."
In general, when hiring through an agency, it is difficult to get someone "by the hour". They usually have minimums, because otherwise you can imagine a caregiver would be going from home to home, spending an hour at each and then another hour in travel time. Just doesn't work. Visiting Angels, when I checked them for my brother years ago, was a minimum of three days a week, four hours each day. So that would have been 12 hours per week. It does quickly add up.
Good luck. Not certain I answered the exact question, but I tried!
I do worry about "what if", what if she (carer) falls on the stairs. The number of hours wouldn't necessitate unemployment claims, etc. Food for thought. I imagine like Burnt said (I was hoping you'd weigh in!), people do this all the time without mishap. Doesn't mean there's no risk, just has to be risk I'm willing to live with (I own the place they live in)
My dad was a line cook and worked "under the table" often. He paid for it in diminished social security benefits later. But for an older woman who has been doing this for years or someone who is doing a side job that knows how she wants to be paid and what works for her....
If and when the need for more substantial hours increases I'll have more to consider.
Appreciate the input and discussion.