Elderly Care Business Employment

[djpin]

Hello, I'm thinking of starting an elderly home care business in California and I'm trying to determine how I have to pay my caregivers. Can I pay them as independent contractors (Form 1099) or do I have to pay them as employees (Form W-2)? I know that many other elderly home care companies pay their caregivers as independent contractors, but I'm not sure if that's legal. Thank you for your help.

 

[cbg]

That depends. A great many employers pay their employees as IC's when they should not.

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

 

[LdiJ]

Hello, I'm thinking of starting an elderly home care business in California and I'm trying to determine how I have to pay my caregivers. Can I pay them as independent contractors (Form 1099) or do I have to pay them as employees (Form W-2)? I know that many other elderly home care companies pay their caregivers as independent contractors, but I'm not sure if that's legal. Thank you for your help.

I have never heard of an early care provider that was not considered to be an employee from a legal standpoint. Independent home caregivers can often be in business for themselves and therefore be independent contractors, but not someone who works for someone else.

 

[quincy]

I have never heard of an early care provider that was not considered to be an employee from a legal standpoint. Independent home caregivers can often be in business for themselves and therefore be independent contractors, but not someone who works for someone else.

It is my understanding that in most areas of the country, elder home care workers are independent contractors. I do not know enough about California to say if that is the case in that state.

Perhaps djpin could check with California's Small Business Administration in addition to checking out the link that cbg provided from the IRS - and s/he will probably want to do both anyway if this is a new business. Sitting down with a business law professional in California, to go over all business plans, would also be smart.

Here is a link to "Small Business Resources" from the office of the California's Governor:

http://business.ca.gov/Programs/SmallBusiness/SmallBusinessResources.aspx