is mother an employer

[beachlady1]

What is the name of your state? VA
My mom has Alzherimer's disease. For 2 years we kept her at home with the assistance of licensed CNA's who cared for her 24x7 at her doctor's orders. We sought out licensed CNAs and had them sign documents stating they were independent caregivers since they were not with agencies. We filed 1099 forms with the amounts paid to them. Mom was recently placed in a locked facility and the services of the caregivers was no longer needed. One of the caregivers has filed an umemployment claim and we are now being told by VEC that we have to pay back unemployment taxes.
We've tried to explore the laws governing this. From what we have been able to determine this is a gray area but that it appears that mom was not an employer. VEC says it's very clear that she was an employer. We're not sure what to do next. My parents aren't wealthy. They have long term care insurance but round the clock home care is VERY expensive. They had to take out a sizeable mortgage on their paid for house to cover the cost of this care. Hiring a lawyer for this fight will be costly as well. And the thoughts of having to pay these taxes as well as the possibility of having to deal with income taxes is making us sick with worry.
Any thoughts you can share will be greatly appreciated.

 

[1Grasshopper]

Is mother an employer?

A couple of questions.

How were the checks made out, by whom?

Was there a power of attorney given ?

 

[beachlady1]

reply

The checks were written by my sister and were made out to the individual caregivers.

My sister and I both have power of attorney. PLEASE don't tell me that we might be held personally liable for any of this.

We just got notice today that another one of the caregivers is attempting to claim unemploymnent benefits. She wants a copy of her 1099. It seems like the first one is telling the others about a potential goldmine. Well maybe not a big goldmine but could give them a lot of extra money if they are getting paid under the table by other clients.

 

[mlane58]

Under the Virgina E,ployment Commission:

Non-covered Employment:
The following types of employment are not subject to unemployment tax: §60.2-212, §60.2-212.1, §60.2-213, §60.2-219

19. Medical services provided in a private residence or medical institution where the individual receiving the services is the employer. If the IRS rules that you are subject to the Federal Unemployment Tax Act (FUTA), then you are automatically liable for state unemployment tax.

20. Individuals providing services in their homes through agreement with a public human service agency for eligible recipients.