easy Resources for families using in-home caregivers

In this section you will find various forms, tools and information helpful to families using in-home caregivers.

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Useful Forms and resources

This section contains various forms and resources which may be necessary for families/employers and caregivers/employees to use from time to time.

Family/Employer information and forms

Caregiver/Employee information and forms

Household Employer FAQ

If you've got questions, you're not alone. Here are simple answers to some of the most frequently asked questions.

For Families / Household Employers
  • I hired someone to take care of me. Am I an employer? Do I have to pay taxes?
  • I hired someone to take care of me. Am I an employer? Do I have to pay taxes?

    The answer may be "yes." There are several factors which determine this in the eyes of the IRS, and they are contained on pages 3 and 4 of the following document:
    IRS Publication 926: Household Employer's Tax Guide

    In general, if a person hires an individual such as a personal care attendant, caregiver, babysitter or any a person that performs services in your private residence, and pays them more than $1900 in a calendar year (for 2014), he or she may be considered a Domestic Employer for tax purposes.

    In addition, the US Department of Labor has made changes to how the Fair Labor Standards Act (FLSA) is applied to domestic homecare workers. In most cases, the family is considered the employer of the caregiver, and has obligations under the FLSA as their employer. See this link for more information.

    Please contact LTCpayroll at 844-582-7297 or speak to a qualified tax attorney or accountant for more information.

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  • Do I have to pay my caregiver overtime?
  • Do I have to pay overtime?

    Yes, if your caregiver works more than 40 hours in a week then it is likely you should be paying hours worked over 40 at an overtime rate of 1.5x the standard hourly pay rate.

    US Department of Labor website: Minimum wage, overtime and recordkeeping requirements

    The US Department of Labor does have two potential exceptions situations which require overtime. Both require the caregiver to be directly employed by the family, and not employed by any third party (such as a registry or an agency). If the caregiver is providing "Companionship services" only, the caregiver may not be required to receive overtime at 1.5x standard rate above 40 hours.

    Also, if the caregiver lives in more than 5 days per week, then they may be considered a "live in domestic service employee" and overtime might not be required. A live-in domestic employee is an employee who provides domestic services in a private home and resides on his or her employer's premises on a "permanent basis" or for "extended periods of time." See Fact Sheet 79B Live-In Domestic Service Workers Under the Fair Labor Standards Act (FLSA) for more details.

    In certain states (such as California and New York), there may be additional requirements for overtime.

    Please contact LTCpayroll at 844-582-7297 or speak to a qualified tax attorney or accountant for more information.

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  • Do I have to pay my caregiver at the minimum wage?
  • Do I have to pay minimum wage?

    Yes, it is very likely that you are required to pay your caregiver at the federal or state minimum wage (whichever is higher) for all hours worked.

    US Department of Labor website: Minimum wage, overtime and recordkeeping requirements

    The US Department of Labor does have one potential exception situation, which requires the caregiver to be directly employed by the family, and not employed by any third party (such as a registry or an agency). If the caregiver is providing "Companionship services" only, the caregiver may not be required to receive the minimum wage. Because the US Department of Labor has made an effort to clearly define "companionship services", you should review them carefully with a qualified advisor before deciding to pay your caregiver less than the minimum wage for all hours worked.

    In certain states (such as California and New York), there may be additional requirements for defining "compensable hours."

    Please contact LTCpayroll at 844-582-7297 or speak to a qualified tax attorney or accountant for more information.

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  • Do I need worker's compensation insurance?
  • Do I need worker's compensation insurance?

    Did you know that your homeowners insurance and personal umbrella liability insurance likely don't cover worker's compensation liability?

    Certain states require workers compensation insurance for full-time and part-time employees under certain circumstances:
    AK, CA, CT, DE, DC, HI, IA, KS, MD, MA, MN, NH, OH, OK, SC, and SD

    Certain states require workers compensation insurance only for full-time employees under certain circumstances:
    CO, IL, KY, MI, NJ, NY, UT and WA

    Whether your state requires workers compensation, or you wish to purchase workers compensation voluntarily to cover your liability as an employer, LTCfastpay will help you with the enrollment process in the state insurance pool, so it is as easy as possible for you.

    Please contact LTCpayroll at 844-582-7297 for state-by-state guidance or speak to a qualified tax attorney or accountant for more information and to help you understand your obligations as an employer.

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  • Do I need a work agreement with my caregiver?
  • Do I need a work agreement with my caregiver?

    In today's regulatory and legal environment, it is always a good idea to have things written down, so that you and your caregiver have a clear understanding of your agreement. Some good information about creating a Personal Care Agreement is provided on the Family Caregiver Alliance site, located at https://caregiver.org/personal-care-agreements.

    Additionally, if you live in New York or California, a "wage notice" is required.

    Wage notice form (California)

    Wage notice form (New York)

    Please contact LTCpayroll at 844-582-7297 for state-by-state guidance or speak to a qualified tax attorney or accountant for more information and to help you understand your obligations as an employer.

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  • Do I need to obtain any documents from my caregivers/employees?
  • Do I need to obtain any documents from my caregivers/employees?

    Before paying any in-home caregiver, it is best to obtain certain forms from each of your employees. LTCpayroll is happy to help you get the proper documentation in place:


    For Independent Contractors under the EPIC process:

    For Domestic Employers under the HHE process:

    Please contact LTCpayroll at 844-582-7297 for state-by-state guidance or speak to a qualified tax attorney or accountant for more information and to help you understand your obligations as an employer.

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  • Do I need to maintain records?
  • Do I need to maintain records?

    Yes, the IRS, Department of Labor and most states have certain record-keeping requirements for domestic employers. Each employer must maintain records for all employees hired, including all hire forms completed and employee information obtained. Records must also be maintained for wages paid, taxes withheld and paid, Returns and forms filed. If you employ a live-in, an accurate record must be maintained for hours worked.

    Here's the good news: LTCpayroll has the processes, tools and forms which meet all of the record-keeping requirements! Our telephony platform (or paper time sheets if you don't want to use telephony) and either EPIC or HHE payroll service documentation satisfies all of the regulatory requirements. We make it easy so you don't have to worry!

    If you want more detailed information about record-keeping requirements, they are available on the Department of Labor website here and on the IRS website here.

    Please contact LTCpayroll at 844-582-7297 for state-by-state guidance or speak to a qualified tax attorney or accountant for more information and to help you understand your obligations as an employer.

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  • Do I need to offer paid time off, vacation or sick time?
  • Do I need to offer paid time off, vacation or sick time?

    Paid time off, vacation or sick time not required by the Department of Labor or the Fair Labor Standards Act. Please review your state's laws as certain state-by-state requirements may exist.

    However, you may find that it is easier to retain home care workers for a longer period of time if you offer certain benefits, such as paid time off, vacation or sick time. If you do offer these benefits, it's best to get the agreement in writing up front, so that you and your caregiver both understand what has been agreed.

    In any case, LTCpayroll can help you implement your plan - paying and recording vacation, sick or other hours correctly on the paystub, as well as accruing paid time off with each payroll period.

    Please speak to a qualified tax attorney or accountant for more information and to help you understand your obligations as an employer.

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  • How does the weekly or bi-weekly payroll schedule work?
  • How does the weekly or bi-weekly payroll schedule work?

    Each weekly work period begins on a Sunday morning at 12:00 AM, and ends the following Saturday night at 12 midnight (your local time). All hours worked during the week are recorded on a timecard, which the employer has access to via our on-line portal. If you are running a bi-weekly payroll, then two weeks' worth of hours are contained in a single timecard.

    Each week, you will receive an email letting you know that hours are ready for approval. Then, you or your representative can go on-line via our secure portal and approve the hours for payroll processing.

    Once the payroll has been processed, LTCpayroll will withdraw the total amount due from your account, and will process the direct deposit payments for your caregiver(s), make any payment(s) owed to a registry or agency (if needed), and will withhold the employee and employer taxes for payment to federal, state and local authorities as needed.

    Assuming the payroll was approved and processed within the required timeframe, then the direct deposit payments for your employee(s) should be in their accounts on the Friday following the end of the work period.

    Please contact LTCpayroll at 844-582-7297 and speak to a customer service representative for more information on the weekly or bi-weekly process.

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For Registries / Referral Agencies
  • What are the changes to the FLSA which may take effect on January 1, 2016?
  • What are the changes to the FLSA which may take effect on January 1, 2016?

    The U.S. Department of Labor has revised its regulations to extend protections under a federal law called the Fair Labor Standards Act (FLSA) for most direct care workers who work in private homes. These changes were originally set to be effective on January 1, 2015, but were challenged in court and the implementation was delayed. On August 21, 2015, the US Circuit Court of Appeals upheld the Department of Labor's new interpretations, and the final rule is now set to be effective as of January 1, 2016. These new protections and their impacts to Nurse Registries and Home Care Companies in general include:

    • Clarifying and narrowing who can claim the "companionship services" exemption;
    • Clarifying that most domestic service workers must be paid at least the federal minimum wage for all hours worked, and overtime pay at least 1.5x the regular rate of pay for all hours worked over 40 in a workweek;
    • Defining more clearly the hours worked and subject to overtime for live-in and live-out workers;
    • Modifying the "third party employment" regulation to prohibit third party employers of domestic service employees from claiming the companionship services exemption from minimum wage and/or overtime provisions;
    • Establishing more specific record-keeping requirements for individuals, families or households who employ Domestic Service workers; and
    • Applying joint employment concepts to Domestic Service employment under the FLSA.

    Because of these regulatory changes, the "Independent Contractor" model may no longer protect Nurse Registries where Domestic Service workers are not being paid according to FLSA requirements. Every Nurse Registry operating under the "Independent Contractor" model), must now evaluate whether it will be considered a "joint employer" under the FLSA after January 1, 2016 (link) and is therefore at risk for wage and hour claims. More information on the Final Rule is available at http://www.dol.gov/whd/homecare/, with helpful answers to Frequently Asked Questions available at http://www.dol.gov/WHD/homecare/faq.htm.

    Please contact LTCpayroll at 844-582-7297 or speak to a qualified tax attorney or accountant for more information.

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  • Will these changes affect my business?
  • Will these changes affect my business?

    If you are a Nurse Registry operating under the "Independent Contractor" model, then the answer is almost certainly "yes." All workers must be paid at least the federal minimum wage (or the state minimum wage if greater). While a worker may still be able to receive a "daily rate," most Domestic Service workers working more than 40 hours per week will need to be paid overtime (even most live-in workers) and the daily rate must be broken down by regular hours and overtime hours at the appropriate corresponding pay rates. Specific records of actual time worked will need to be kept by the family. Continuing to operate using existing models could cause a substantial liability for the Registry or Agency under wage and hour claims which could be crippling to the business.

    The good news is: by using either LTCpayroll's EPIC or HHE solutions, clients of registries or caregiver referral companies can meet DOL requirements for minimum wage, overtime and record-keeping provisions.

    More information on the Final Rule is available at http://www.dol.gov/whd/homecare/, with helpful answers to Frequently Asked Questions available at http://www.dol.gov/WHD/homecare/faq.htm.

    Please contact LTCpayroll at 844-582-7297 for more information and speak to a qualified tax attorney or accountant to help you understand your obligations under this new legislation.

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  • My state does not require overtime or minimum wage for domestic employees. Will I still be affected?
  • My state does not require overtime or minimum wage for domestic employees. Will I still be affected?

    Yes. The absence of state legislation or the presence of more favorable state legislation does not allow companies or individuals to ignore this federal legislation.

    In certain states (such as California and New York), there may be additional requirements for overtime, wage notice and guidelines in defining "compensable hours."

    Please contact LTCpayroll at 844-582-7297 for more information and speak to a qualified tax attorney or accountant to help you understand your obligations under this new legislation.

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  • My business is located in Florida. My state explicitly says that a home health aide is an independent contractor. Will I still be affected?
  • My business is located in Florida. My state explicitly says that a home health aide is an independent contractor. Will I still be affected?

    Yes. FL general bill #1179 signed into law on 6/13/14 states that "A registered nurse, licensed practical nurse, certified nursing assistant, companion or homemaker, or home health aide referred for contract under this chapter by a nurse registry is deemed an independent contractor and not an employee of the nurse registry" [Amending section 400.506(6)(a)].

    Bill #1179 goes on to say that "Upon referral of a [worker] for contract in a private residence or facility, the nurse registry shall advise the patient, the patient's family, or any other person acting on behalf of the patient, at the time of the contract for services, that the caregiver referred by the nurse registry is an independent contractor and that it is not the obligation of a nurse registry to monitor, supervise, manage, or train a caregiver referred for contract..."

    This bill, while stating for FL (state) purposes that the nurse registry is not an employer, does not insulate nurse registries from the effects of the FLSA. Registries meeting the criteria described by the Department of Labor can still be considered co-employers if they meet certain factors (described clearly at http://www.dol.gov/WHD/homecare/faq.htm#agencies). While no one factor is controlling, the registry will likely be considered an employer under the FLSA if the entity has the power to direct or supervise the worker, or the power to hire, fire, or modify the conditions of employment, or determine the pay rate or method of pay.

    In addition, all employees that would be afforded the protections in other states will still be covered. The family hiring the caregiver will need to be made aware of their obligations as the employer under FLSA; omission of this information could constitute a liability for the registry.

    Please contact LTCpayroll at 844-582-7297 for more information and speak to a qualified tax attorney or accountant to help you understand your obligations under this new legislation.

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  • How can I protect myself and my business after January 1, 2016, while still referring cost-effective caregivers to my clients?
  • How can I protect myself and my business after January 1, 2016, while still referring cost-effective caregivers to my clients?

    The good news is that the full-employment agency model is NOT the only solution. Nurse Registries can continue to refer cost-effective caregivers to families needing care, resulting in lower-cost services than a full-employment agency is able to provide.

    The good news is: by using either LTCpayroll's EPIC or HHE solutions, clients of registries or caregiver referral companies can meet DOL requirements for minimum wage, overtime and record-keeping provisions.

    Most important is that you make it as easy to transition existing and new clients to a new model. First and foremost, discuss with your clients and their families what their obligations will be, and help them find an appropriate partner to help them comply with the new requirements. This new legislation affects them as much as it does you, and you will likely know more about the requirements than they will. Ignorance of the law is not a defense - you will be doing them a great service making them aware of their obligations.

    To work with your clients towards the goal of overall compliance while protecting you and your business from liability, you should consider:

    • Recognizing that most workers will be covered by FLSA after January 1, 2016, and taking steps to ensure that they are paid properly by their employers for both regular and overtime work;
    • Helping the employers identify resources to calculate appropriate pay rates for standard and overtime hours (which reflect the actual hours worked) and create a written agreement codifying that agreement;
    • Evaluating the specific factors which would lead to a determination of a co-employment situation, and minimizing the number of factors which might indicate your organization is a third party employer; and
    • Referring the client to a third-party payroll company which is able to help the family satisfy all documentation, employment and wage and hour requirements.

    Please contact LTCpayroll at 844-582-7297 for more information and speak to a qualified tax attorney or accountant to help you understand your obligations under this new legislation.

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  • What is EPIC payroll for independent contractors?
  • What is EPIC payroll for independent contractors?

    EPIC payroll is a simple and cost-effective electronic payment solution for families receiving in-home care from Independent Contractors. Each week, LTCpayroll processes one electronic withdrawal from the client, pays the Independent Contractor(s) his or her gross wages via direct deposit, and processes the office fee payment to the registry. There are no additional employer taxes collected and no workers compensation costs. Any tax obligations are the responsibility of the family and the caregiver. At the end of the year, LTCpayroll will create and send a 1099 for each Independent Contractor.

    Benefits of using EPIC payroll to process payments for Independent Contractors include:

    • Meeting all FLSA and IRS regulatory needs;
    • Helps meet minimum wage and overtime requirements under the FLSA;
    • Meeting the Department of Labor's record keeping requirements;
    • Enabling reliable electronic payments to both caregivers and registries; and
    • Giving the ability to continue offering lower-cost caregivers, when compared to a full-employment model agency.

    Please contact LTCpayroll at 844-582-7297 for more information.

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  • What is the "Household Employer" model?
  • What is the "Household Employer" model?

    The Household Employer model is a way to meet both DOL/FLSA and IRS obligations. Instead of treating the caregiver as an Independent Contractor, the client (person receiving care or a family member) becomes the "Domestic Employer" of the caregiver(s). The caregivers become W2 employees of the client. A third party payroll company contracted by the client processes a weekly or bi-weekly payroll, withdrawing funds from the client's bank account and making direct deposit payments of net wages to the caregiver(s)/employee(s). The payroll company will withhold any required federal, state and local taxes, make appropriate payments and filings, and will typically help the family comply with other state or federal regulatory requirements.

    Benefits of adopting the Household Employer model include:

    • Meeting all FLSA and IRS regulatory needs;
    • Reducing or eliminating liability for the registry, and removing any co-employment obligation (assuming no factors are present);
    • Giving the ability to continue offering lower-cost caregivers, when compared to a full-employment model agency; and
    • Providing better protection to clients and their domestic workers from possible IRS obligations.

    Please contact LTCpayroll at 844-582-7297 for more information.

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  • What does LTCpayroll provide to help me?
  • What does LTCpayroll provide to help me?

    LTCpayroll is a turnkey provider of payroll and tax services to families receiving long-term care. Our company helps manage the process of setting up, administering and processing payments for independent caregivers. By using either LTCpayroll's EPIC or HHE solutions, clients of registries or caregiver referral companies get cost-effective electronic payment process, while meeting DOL requirements for minimum wage, overtime and record-keeping provisions. We take care of the process of withholding and paying employer and employee taxes, and provide all documents necessary for year-end tax filing.

    Not just a nanny-tax company, LTCpayroll's technology and services are built from the ground up to support the complexities associated with home health care. We understand the challenges faced by nurse registries and their clients, and have developed a turn-key process to help clients meet all of their obligations with a minimum of effort.

    As long-term care specialists, we offer several things which are unique among household payroll providers, including:

    • Payment of the referral fee to the registry with each payroll (client no longer needs to write "two checks");
    • Integrated telephony and reporting are included in the service, to get more information in the hands of registries within regulatory guidelines;
    • Processes and technology which support multiple caregivers and different hours each week, which is so common in LTC situations; and
    • Weekly or bi-weekly payroll processing for each client: withdrawing the total amount directly from the client's bank, withholding state, federal & local taxes, processing direct deposit payments to employees for net wages, and processing payments to the registry for referral fee.

    In short, LTCpayroll is a specialized company with the technology, people and services to meet the specific needs of registries and their clients.

    Please contact LTCpayroll at 844-582-7297 and speak to a customer service representative for more information about our services.

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workers compensation coverage

  • Did you know that your homeowners insurance and personal umbrella liability insurance may not cover worker's compensation liability?

    Certain states require workers compensation insurance for full-time and part-time employees under certain circumstances: AK, CA, CT, DE, DC, HI, IA, KS, MD, MA, MN, NH, OH, OK, SC, and SD

    Certain states require workers compensation insurance only for full-time employees under certain circumstances: CO, IL, KY, MI, NJ, NY, UT and WA

    Contact LTCpayroll for state-by-state guide to help you understand your obligations as an employer.

    LTCpayroll can also facilitate the process of getting set up with Workers Comp insurance, either through placement with a commercial insurance carrier or via your state pool. Call us at 844-582-7297 to find out more.
DISCLAIMER: All information contained within this website is intended to offer general guidelines for tax and employment matters. Tax laws, schedules, documentation and interpretation vary considerably based on the state of residency and specific client circumstances. All information herein is presented for informational purposes only, and is not intended to serve as legal, accounting, or tax advice. Consult a qualified tax attorney or accountant for definitive answers to any questions.