In home caregiver service for seniors

A recurring question to our client support staff concerns whether a family can treat their household staff as an independent contractor and avoid the entire issue of payroll taxes.

The answer is generally NO. Common law (not the tax code) makes the determination of when an employer/employee relationship exists. Under common law, a worker who performs services for you is your employee if you can control what will be done and how it will be done. It does not matter whether you give your household staff great latitude, but rather that you have the right to control the work. It does not matter if the work is performed on a full time or part time basis. It does not matter whether the worker lives with you or not. It does not matter if he/she is paid hourly, daily or a salary. It does not matter how the employee refers to herself or how you refer to him/her in an employment contract. The IRS articulates strict guidelines that differentiate employees and independent contractors to further eliminate confusion (Refer to IRS Publication 926). Nannies, elder care givers, and other domestics are generally considered employees. You are generally obligated for all payroll tax filings and remittances if you pay the worker $1500 or more in the calendar year (2006 & 2007 threshold).

If you must file Form W–2 or pay Federal unemployment tax, you will also need to file a Form 1040 (Schedule H), Household Employment Taxes, after the end of the year with your individual income tax return, Form 1040, U.S. Individual Income Tax Return. However, a sole proprietor who must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and Form 941, Employer's Quarterly Federal Tax Return, for business employees, or Form 943, Employer's Annual Tax Return for Agricultural Employees, for farm employees, may include household employee tax information on these forms.

Other helpful information:
IRS Publication 15 Employer's Tax Guide (Begin page 6)
IRS Publication SS 8 Determination of Worker Status
IRS Topic 752 - Form W–2 – Where, When, and How to File
IRS Tax Topic 755

Q: Is Smile & Love, Inc licensed and bonded?
A: Yes, Smile & Love, Inc is licensed by the state of Illinois and bonded as well.

Q: Is Smile & Love, Inc cover by Workers Compensation coverage as required by law and comprehensive general liability insurance covering its employees while providing services to its clients?
A: Yes.

Q: How much notice do you need?
A: We typically need 3 days notice, but can place someone within 24 hours if required.

Q: Does insurance cover the cost of non-medical home care?
A: Only long-term care insurance policies cover our services. Normally, health insurance policies do not cover our services.

Q: Do government programs cover the cost of home care? Medicaid or Medicare?
A: Currently, Medicaid and Medicare do not cover non medical home care services.

Q: How do you train your employees?
A: Every Smile & Love, Inc caregiver participates in an exclusive training program, which covers the most practical topics and situations encountered in elder caregiving. Additionally some of the caregivers are CPR and First Aid Trained.

Q: How do you select your caregivers?
A: All of our caregivers have successfully completed a thorough reference and criminal background check . Each caregiver is also bonded and insured.

Q:Are your services available for the elderly in nursing homes, assisted living facilities or bedside sitting in hospital?
A: Yes.

Q: Who pays the caregiver - me or you?
A: Smile & Love, Inc handles all the billing, payroll, taxes and the insurance for you

Q: Does someone from your office come to our home or hospital for a free assessment?
A: Yes

Q: Do you keep a journal in our home to document activities and ideas how to journal?
A: As a client, you will receive a folder with notebook and a list of every day activities to follow. This is a wonderful way that keeps family members aware of what is going on.

Q: Why can't we have only one caregiver for the loved one?
A: While we would all like to have just one caregiver for each client, it just does not work. We believe, foremost, that when there are just one or two caregivers working with a client it tends to create a potential for bad relationships. In these instances, the client often forms an unhealthy dependence upon those one or two caregivers. We believe there needs to be at least 3 or 4 caregivers, who are rotated on a regular basis, familiar with the case, who can provide the level of care required.

Q: Can the caregiver help with writing out my bills or help with my banking?
A: No, it is strictly against our company’s policy. If our caregivers do, they will be fired from our employment. We cannot emphasize enough that our caregivers provide care services only and are not to be involved in any way, shape, or form with our client's financial affairs. We feel confident the reasons for these policies are obvious.

Q: I love my caregiver so much and I like to give a gift?
A: Our caregivers cannot accept a gift of any form from our clients, or the client’s friends or relatives, without prior authorization from Smile & Love, Inc. If our caregivers do not follow this policy, the caregiver will be terminated immediately from employment with Smile & Love, Inc. All our caregivers understand this. If you feel a desire to give a gift, of any form, we ask that you put those desires in a letter to Smile & Love, Inc, detailing the items(s) you intend to give your caregiver. Upon Smile & Love, Inc’s approval, we will make the proper arrangements for the caregiver to receive the gift.

Q: Before a nanny is hired, can a family do reference checks on the nanny?
A: Yes

Q: What are the duties of the caregiver?
A: The caregiver will provide assistance with personal care, daily activities and household help. Caregiver's duties include cooking, running errands, grocery shopping, light housekeeping and providing occasional transportation.

Q: What about live in help?
A: Live in help can be provided by Smile & Love, Inc - home care agency. Live-In Caregivers Require:

Place to sleep and food for three meals a day (Caregiver prepares the food).

Space to put their clothes and other necessary items.

Minimum of (8) hours of sleep/rest per day.

Additional time for meals and personal needs

Q: What is better to have a live-in or come-and-go nanny/caregiver?
A: Live-in or 24 hour caregiver/nanny are available 24 hours a day. That does not mean that they are actually going to work that many hours, but they are always nearby in case you need them. Therefore, that is a very cost effective option for people who need assistance at different times throughout the day.

Q: Can we have a criminal background check on nanny/caregiver that we are going to hire?
A: Yes.

Q: Do I have to be registered with Smile & Love, Inc to apply for a job?
A: Yes, you have to be registered to apply for a job. Our web application which uses the most recent technology is the most convenient way to apply

Q: I don't know how to use the computer. How should I apply for a job?
A: Call our office and we will register you over the phone.

Q: I still have not heard anything from you.
A: This means we do not have yet a job for your needs.

Q: Should I call once and a while to remind of myself?
A: Please do not call after you have been registered. We will call you immediately if we do have a job for your needs.

Serving Cook County (Arlington Heights, Barrington, Bartlett, Chicago, Des Plaines, Elk Grove Village, Elmwood Park. Evanston, Forest Park, Glencoe, Glenview, Golf, Harwood Heights, Hoffman Estates, Kenilworth, La Grange, La Grange Park, Lincolnwood, Melrose Park, Midlothian, Morton Grove, Mount Prospect, Niles, Northbrook, Palatine, Park Ridge, Prospect Heights, River Forest, River Grove, Rolling Meadows, Schaumburg, Schiller Park, Skokie, Wheeling, Wilmette, Winnetka), DuPage County (Addison, Bensenville, Bloomingdale, Carol Stream, Clarendon Hills. Darien, Downers Grove, Elmhurst, Glendale Heights, Hanover Park, Hinsdale, Itasca, Lombard, Roselle, Villa Park, West Chicago, Wood Dale,) and Lake County (Buffalo Grove, Deerfield, Highland Park, Lake Zurich, Lincolnshire, Long Grove)