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This woman was hired through craigslist and wasn't fully candid about her approach to life until over a month after taking residence (caring for mom with dementia, only the two of them live in the house). Part of it involved a sibling not allowing frank screening during the initial phone interview, but that complicates this question too much.


Tax avoidance combined with some apparently radical anti-government views (full extent & practice unknown) is driving her anti-contract mindset, but she's been good otherwise and we're trying to figure out if forcing a contract would wreck the working balance. We're technically going on blind trust, based on nothing outwardly dishonest about her. The nearest one among us is 300 miles away from mom's house.


From web searches: "According to the IRS, if a privately hired / independent caregiver is paid more than $2,100 per year (in 2019), they are considered a household employee, not an independent contractor. Thus, the family hiring the independent caregiver takes on all the responsibilities of being an employer, which includes payroll and taxes."


It would make our lives easier if she didn't become an "employee" but it leaves all parties unprotected if things go sour. One pragmatic problem is that some household duties can't be defined without a contract. This may cause future friction if she doesn't want to do chore X or Y, even if it's not that difficult and shouldn't require hiring outsiders.


Is it reasonable or common for non-family live-in caregivers to shun written contracts?

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I don't know the answer to your question, but...

1. How do you know it's going well?

2. How will you get her to leave when mom dies/needs to go to a NH?

3. How will you account for the under the table payments when mom needs Medicaid for placement in a NH?

4. If she is willing to cheat on paying her taxes, what other dishonest things is she capable of? Using mom's credit cards? Convincing mom to sign over assets, leave her the house?

Just some food for thought.
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PeakShale Nov 2021
We're in daily or weekly contact and have remote cameras, with no sign of anything wrong. She'd be evicted already (ideally) if there were bad signs, so this is a more subtle situation of not rocking the boat when someone may be as good as it gets for actual care.

You must mean Medicare, not Medicaid, and I've read about that concern.

She's already trusted with handling some aspects of money, and it's being monitored via remote banking sessions. There are too many other details to give here.

The gist of my question is how common is lack of a contract and what are the typical reasons given? I'm just surprised it's not legally mandated.
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BarbBrooklyn is correct on all fronts. The contract protects all the parties involved. I'm not familiar with housing rules as they relate to live-in caregivers, but in some states that living arrangement ends with the caregiving and maybe you wouldn't have to evict her if she doesn't leave on her own. In your case you couldn't even prove she was a caregiver since there's no contract and she's getting paid in cash.

Since your profile mentions that your mom has dementia, does this caregiver have any experience working with such people? This would definitely be an important qualification Then there's the vaccination issue and I'm going to guess this person probably isn't, so there's that danger for your mom (and I don't want to derail this post, I realize people who have been vaccinated are getting the virus as well). Would this caregiver even take your mom to a medical appointment to get a vaccine? In fact, who is taking your mom to her appointments and keeping track of what is said and done and then following up for her?

Your profile says that you live hundreds of miles away with no other siblings local or even in state. I'm hoping you (or another sibling) are your mom's DPoA, and that you've taken measures to protect your mom's financial resources and sensitive information. Your mom is vulnerable and IMO this current arrangement will eventually become a real headache for you and sketchy for your mom. If I were in your position I'd do what it takes to move her close to me, whether she is on board with that or not. The caregiving arrangement can't be onerous to the caregiver and this has all the hallmarks of maybe moving in that direction. Better to improve the situation now than having to try to do it in a crisis.

In my family we've used a caregiving agency because their people are screened, paid and reported legally, can provide subs and aids who are appropriately qualified for different levels of care, and can be easily replaced or fired. Also, if your mom's live-in caregiver always works in cash she won't have much SS to support herself as she gets to her own senior years. Not to mention she's not paying into the system yet will likely need the resources of Medicare and Medicaid herself. I bet she'll gladly use both.

Not sure about your mom's financial resources but if there's any chance she'll need Medicaid, her ability to qualify will need to be protected. This current arrangement may endanger that. You can consult with a Medicaid Planner for her state to figure this out, especially if her state has a 5-year "look back" period for the application.

Long-distance caregiving is difficult on many levels, and I'm sure you're doing the best you can. I encourage you to look past today and into your mom's probable future. It won't take much for your mom to have a fall or stroke and then the poop really hits the fan. Better to do a little more work now than suffer the very stressful consequences later. I wish you much success in working out a solution for your mom and family.
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PeakShale Nov 2021
She does have dementia care experience but keeps things on a less formal level. It's tricky because she seems capable in most areas and shows the patience needed for the situation. It's certain details that are vague.

We had a bad experience with a licensed agency that seemed to do poor screening. This was a test of one-night of care, earlier. In other words, the current lady may be as good as it gets, just with caveats.

I guess contract percentages nationwide are hard to know, and contracts aren't legally mandatory.
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Besides IRS you have Medicaid if ever needed. They will question large amounts of money leaving Moms acct ever week. A contract wil, protect Mom.

Then there is everything Brooklyn said. There are a number of posters that had a hard time getting the live-in Caretaker to leave because there was no contract. You really need one in place. I would write one up and have a lawyer review it. It should be notarized. Your labor dept should have rules concerning aides. They get time and half for anything over 40hrs and time off.

Because this woman doesn't want a contract, for me that is a red flag. For the money Mom is putting out for round the clock care, for my peace of mind, I would feel better if she was in a nice Assisted Living near a family member. If she has a home, sell it and use the proceeds to pay for her AL.
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No, I mean Medicaid.

Medicare doesn't pay for long term care (except for rehab) and is not means tested.

I mean Medicaid, when mom runs out of money and needs Nuraing Home care (at 12 k permonth). There is a 5 year lookback. You will need to account for how her funds have been spent.

I hope you know about the ins and outs of Medicaid in your mom's state.
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PeakShale Nov 2021
She's not poor by any means, but I do see that the two things can overlap. It's just a complex situation,
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Try asking the caregiver what her reasons are for not wanting to go contract with you.
She may be on Medicaid or disability but doesn't get enough to live on so she has to earn money and the only way to do it is under-the-table so it doesn't screw up her benefits.
When you talk to her don't be judgmental about her not paying taxes and how that's illegal. Believe me, if you don't make paying her in cash an issue, she won't give you problems. Did you check her work references and talked to other families who have hired her in the past? This is always the best indicator of how good a caregiver she will be.
Also, be realistic about things. No one takes a live-in caregiving job for an elder with dementia unless they're pretty down on their luck. Keep this in mind and don't be judgmental.
I have done private care for a long time and have never had a contract with a family. We've always just talked about what they expect and I explain that situations change very quickly with caregiving and if we need to re-negotiate things like the pay for instance because a higher level of care becomes necessary at some point. Things like this. I don't do live-in work but you could come to an arrangement with your worker about how long she can stay if mom passes or has to go into facility care.
If you take care of the caregiver properly, she'll work out fine.
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PeakShale Nov 2021
Yes, references were called and all the rest. There's just a dynamic where it might rock the boat too much if we prod her, but it wasn't my choice for things to not be above-board from the start. That gets into another sibling's involvement, which I'm not detailing here for privacy.,

Do you have specific reasons for not wanting contracts that protect all parties? If things go wrong, have you relied on other legal avenues, like lawsuits or insurance?
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Peak, at 10-12 K per month for Memory care or NH and perhaps 15K for at home care, you can spend down quite a fortune pretty quickly.

When my mom entered a NH after a dementia dx and a broken hip, we resigned ourselves, reading that most folks only live 6 months in such facilities, even good ones.

My mom thrived and lived well for nearly 5 years. She was not poor by any means, but we got pretty close to needing Medicaid funding.

Medicare (which everyone is entitlted to after age 65) will pay for a few weeks of rehab after a qualifying hospitalization.

Medicaid is something you need to apply for when/if she gets within about 20k of running out of funds.

A visit to an eldercare attorney would male this all much clearer.
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The things that jumped out at me in your post were:

* ”hired through craigslist”
* “wasn't fully candid”
* “Tax avoidance”
* “blind trust”

There is no good here. No formal background check of any sort, I assume. No relative nearby to regularly check in. Alone with your mother who has dementia.

A contract may be the least of your problems.
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PeakShale Nov 2021
It's just not that stark but I know how it seems from limited info here.

We did enough of a background check to get the gist of things. A formal one could be done at any time. This is a case where trust has been earned (so far) and I'm keeping watch for any flukes.
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She should be under a contract. It protects you, her, and the person she cares for. Talk to a lawyer that deals with elder law - worth every cent - to get you out of the mess you are now in.
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They might try but NO. IRS will consider this tax evasion, so to protect yourselves she needs a contract (you may also need one if you want to get rid of her). Live in carer off Craigslist - a new one on me, I would want some proper qualifications, experience and references,
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"nothing outwardly dishonest about her"
Tax evasion
not wanting a contract
not candid
I see red flags all over this.
You have a great excuse to change this (and possibly look for a new caregiver.
The start of a new year is right around the corner.
Tell your employee that your lawyer has advised that a contract be drawn up spelling out the duties and level of care that "Ms. XXX" requires.
Also filling out paperwork for the IRS and all other papers required.
This all is being done in case "Ms. XXX" declines to the point where she needs more specialized care and has depleted her funds that have been set aside for her care and an application for Medicaid needs to be completed. All the paperwork will show that all funds have been used properly and that no monies have been gifted.
Also do a complete background check
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PeakShale Nov 2021
I know why responders are looking at worst case scenarios, but it's a much more subtle situation. References were interviewed, etc. There are certainly some secret traits, but they'd be revealed if asked about.

A blatantly evasive persona would have me far more concerned, and I know about long-cons and most of life's pitfalls. (Off-topic: Many voters trusted an unashamed con man to handle far more responsibility, so it's all relative.)
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The ones that want to get paid under the table all want to work without a contract. Because a contract is proof they were working and that's the last thing they want. They are violating many laws, probably getting public assistance, because they have no income.

At the very least get a copy of her state issued ID and a second form of ID. If she doesn't want to do that, I wouldn't trust her with my mom.
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Sarah3 Nov 2021
Did you forget the person they’re working for is not exactly a bystander in that! The person who hires them would be considered as being more responsible for this type of arrangement
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I am a caregiver of sort. I check in with clients weekly to see how things are going. I sit and have a conversation with them for about 1 hour, check for fresh food, count pills to make sure meds are being taken, looks or fall and safety hazards, clean clothes, bedding, etc. if you can find someone that does such a job in your area. That might be helpful.I also pay bills for some, check credit card receipts, etc but have access to only the monthly allowance, no more.
I have one client that didn’t want me under contract because of knowing each other for many years. However, we hand write one up and both signed it to cover him and me. I don’t want kids who didn’t visit to come and question me in the future. When he needed to add night time care, I called the agency and digitally signed the contract on his behalf.
Especially as dementia progresses, things can get sketchy. my own mom thought I was forging her name. It’s good my dad was alive to know it wasn’t true.
In my opinion, a contract and proof of ID is the least of what you need. It doesn’t have to be a long drawn out paper. Keep it simple.
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Sarah3 Nov 2021
”I didn’t want kids who never visited coming to question me”—- this is among certain demographics a very common thing unfortunately the adult kids who played little to no role suddenly want to meddle and check on you - they didn’t care enough to ever hardly visit so their concern is disingenuous and is about making themselves feel important
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I do taxes and for the IRS you have to report any payment to that person over $600 so you will have to go to an accountant with her name, social security number, and where she lives to make out a 1096 form to report it to the IRS. I know this because I have to do it too for my niece because she took care of her uncle and I paid her.

Working without a contract isn't right there should be a contract to protect you and your mother. With not having it you puts yourself and your mother in all kinds of danger because you don't know anything about her. And with that said you don't know what she can do and say to get her way even with the house saying your mother gave it to her.

I would go thru an agency it will protect you and your mother and also the worker because if she falls you would have to pay for it and do you have the money to do that? Does your mother have enough money to pay for someone that falls and says they cannot work anymore depending on the age you maybe paying her salary for 10 to 15 yrs do you have enough money for that?


Never take the easy way out because it will cost you in the end speaking from experience BIL gave money to his niece she said it was for her taking care of him and he has dementia.
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Sarah3 Nov 2021
600 dollars would be equivalent to apr 72 hours of in home non medical caregiving
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My question is, why didn’t you ask these questions before you gave her the key to your moms house? You’re probably paying her half the going rate. Just a guess.
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PeakShale Nov 2021
That's the "rest of the story" that I'm leaving out for some privacy. One of my other posts in this forum gets into that topic.
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Two things I can suggest regarding concerns about the care your mom is receiving from the caregiver you hired from Craigslist. I understand this is not your concern or question but seems to be a concern for the people responding to your question. So I thought I would put my two cents in to hopefully be of help to you and others reading this post. First, make regular unannounced, surprise visits to you mom's house at all different hours of the day/night to make sure everything is going well and is not just cleaned up and "for show" during your planned visits. Second, hire an Aging Life Care Specialist in your mom's area. Some of the valuable services we can provide is to oversee your mom's care by providing oversight and supervision of the private home care aide, making sure your parent is being taken to doctor's appointments (we can even sit in on doctor's appointments if you can't be there, ask pertinent questions, report findings back to you and make sure everything that needs to be followed up on or done after the appointment is actually done), paying bills, looking for additional aides to assist during times of vacation or illness of your mom's regular aide, among many other services that can provide you and your family with peace of mind knowing that your mom is being well cared for when you cannot be there. There really needs to be a checks and balances system put into place to ensure honesty, accountability and overall delivery of good, quality care for your mom. You can find a certified Aging Life Care Specialist in your mom's area by going to ALCA.org and click on "find an expert".

As for your actual question, I would advise consultation with an elder law attorney regarding putting things in place to protect you, your mom and the aide. Also, you can 1099 the aide at the end of the year and it will be on her whether or not to file her own taxes. That way you have covered yourself. As already mentioned, it is also important to be able to show where your mom's money is being spent for Medicaid purposes should she need nursing home placement in the future. Medicaid will look to see that her money was not gifted away within the last 5 years from the filing date so you will need some sort of proof that her money wasn't gifted but used towards care expenses. I also want to add that in my professional experience some of the best, most caring, reliable and dependable aides are the ones who "work off the books". Sad but true. I have learned not to judge a book by the cover and to trust your own gut instincts. I hope that helps. Good luck!
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PeakShale Nov 2021
The Medicaid angle is a good thing to learn, though I don't see funds ever getting that depleted in this case.

'I also want to add that in my professional experience some of the best, most caring, reliable and dependable aides are the ones who "work off the books". '

The above may well be true here. It's all about individual personalities and reasons for doing this sort of work, including liking the elderly more than younger people who "have it together" but can be far more unpleasant to face.
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To be in compliance with labor laws you would be paying this person about 180K a year. Room and board cannot be considered even partial payment.

If f paid $15.00 an hour, that is about $30,000 a year. Then overtime alone is about $150,000.00 a year. Caregiver is expected to respond to overnight emergencies? Does she get paid time off? Vacation? Health insurance? Does mom carry liability insurance in case of injury? At this rate what would be the problem with making payment legally?

You have many things to think about. If mom ran out of money, then Medicaid and you would have to account for the monies being paid to caregiver. Without a contract and legal payment anything paid to caregiver would be considered a gift. So mom is ineligible for medicaid. Nursing home fees paid by family.

Medicare does not pay for long term care. And NEVER,EVER hire a caregiver from Craig's list. Trying to do this on the cheap is not legal and above all safe for mom.
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Sarah3 Nov 2021
I agree w most of your reply except for your comment about hiring a caregiver from Craigslist being illegal is not true. There is nothing illegal in hiring a caregiver from a site such as craigslist- it’s also not the case that hiring a caregiver feom
Craigslist is not safe and hiring from agencies is safe. There’s plenty of cases where agency caregivers did something wrong just like caregivers from craigslist. Hiring a caregiver from an agency some people like to think there’s a guarantee the person is of honest good character is simply not always the case. The ideal solution though not always possible is to have a family member as the cg
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My lawyer says to always get everything down on paper. It sounds like she's going under the table and not claiming her wages and using the non government thing as an excuse. She's hiding from something. I hope you have cameras in the house. I don't think I could trust someone like that.
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Sarah3 Nov 2021
I didn’t mean to click on helpful answer I meant to click on reply. You make it sound as if she on her own has “gone under the table”- this means the person she’s working for the op has even more responsibility for this as the employer
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First off- How much do you pay her?
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PeakShale Nov 2021
Roughly $2k, which is far less than many official agencies ask.
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Sarah, what I said is "trying to do this on the cheap is not legal". That statement had nothing to do with Craig's list, only the method paying the caregiver.
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My bet is that the un-contracted caregiver is an illegal alien who doesn’t want attention drawn to herself.
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Isthisrealyreal Nov 2021
I have seen plenty of American citizens trying to hustle the system and get around paying taxes so they can get benefits.
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PeakShale: Imho, I wonder why this caregiver was offering her services on Craigslist.
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BurntCaregiver Nov 2021
Llamalover47,

She probably offers her services on Craigslist because she doesn't want to pay the membership fees to have an employment profile on Care
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It sounds as though your worker is fairly keen on making up her own mind, rather than following the rules. The problem is that you don’t know what rules she is willing to disregard. You already aren’t too happy with her ‘radical anti-government views’, possibly other things that she wasn’t ‘fully candid about’, as well as preferring nothing in writing and no tax or insurance. Other possible things she might have her own views about include disapproval of medications, unproven complementary medicine, odd diets, suggestions of supporting religious or other fringe groups. She may not be ‘fully candid’ about a range of things you aren’t too happy with.

I do prefer to stick to people who stick to the rules. The lawyer in me says that it’s nearly always safer. Once you know you're in the wrong, it can be hard to deal with problems that come up.
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BurntCaregiver Nov 2021
MargaretMcKen,

The poster also states that the caregiver has been doing a good job.
Is it part of the caregiver's duties to make sure they share the same political and/or religious views the employer's family has? No it is not. I can't tell you how many total and complete elderly a$$holes and their families I've worked for over the years, who have Fox News blaring on the tv 24 hours a day. I can say that now because I'm not working for them these days. I never had a problem with any of them because I knew it wasn't my job to debate their politics or organize a protest in some elderly client's front yard to call them out on racism or sexism, or anything else that ends in an 'ism' for that matter.
Please define what you mean by "fully candid". Everyone has a right to privacy and do not have too share and discuss every detail of their lives because an employer believes they have a right know anything they want. They do not have this right.
The employer has a right to check work references. They have a right to demand a criminal back round check to make sure their employee is not a criminal or wanted by the law. In healthcare and jobs involving close contact with the public, an employer has a right to know that their workers don't have communicable diseases and may insist on vaccination records.
I never discussed my personal political, social, or religious beliefs with any client or their family. Nor have I ever engaged a client or any of their family members in any discussion even remotely connected to politics, religion, or social issues.
The poster states clearly to me in the response to my comment that this caregiver's references check out. Sometimes it's best to leave well enough alone.
Her political views have nothing to do with the job. If the family had such misgivings with her they did not have to hire her and let her move into their mother's house. They did though. So unless she's giving them a reason to fire her like she's not doing her job and the client doesn't want her there, leave well enough alone.
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OP, you are now starting to sound deceptive and not willing to tell enough of the story. You pay this person $2,000.00 a month? Have you checked to see what that is in an hourly rate? Almost 35¢ an hour! Does that sound legal to you? Slavery was abolished in this country eons ago. Maybe now you see why the contract is necessary, but probably not. A contract protects all involved.

If this caregiver were to become disgruntled, she could easily go to the department of labor and file a complaint. Writing "household services" on the memo line will not take care of your issues. Have you thought about a consult with an elder law attorney to find out what is legal in your state. It would be a good idea.

Is it really worth it?
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BurntCaregiver Nov 2021
gladimhere,

You don't understand how live-in help gets paid. There are jobs where the employee does not have to be paid even minimum wage hourly. Like waiter/waitress, bartenders, hairdressers (in some states). Live-in caregivers fall into this group. Whereas the other types of workers get tips and this justifies not even paying them minimum wage, not paying a live-in caregiver minimum is justified because free room and board is factored in.
It's a pretty lousy system all around, but this is how it works.
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Burnt, you have obviously been burnt. Room and board cannot, by law, be considered even partial payment for a live in caregiver. That is according to the IRS. If you are required to live in that is part of your job description. Room and board is not payment for caregiving.
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BurntCaregiver Nov 2021
gladimhere,

I've been burned a couple of times on my wages, but never twice by the same employer. Any agency or family that has ever employed me understands that I get my money or their loved one goes without care. No exceptions.
I did not say room and board are considered partial payment for services. Because room and board are included in the position, live-in caregiver falls under types of work where the employer does not have to legally pay minimum wage. Other jobs in this category include restaurant waitstaff, bartenders, and hairdressers because they get tips. This is why they don't have to be paid even minimum wage.
You could consider the free room and board a live-in caregiver gets to be sort of like tips. It isn't payment for services, but is the reason why live-in caregivers do not have to be paid minimum wage.
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My father had live in help before he went to nursing home. His lawyer set everything up so that it followed all wage and hour laws. The lady was paid $12.00 an hour. She had a contract.That was the going rate in our area for elder care workers, plus taxes, SS and her insurance. She had a bedroom and private bath. Going in the NH was less expensive when he started needing more assistance.
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If she lives in and works 100% of her time for your mother, she will be considered as your mother's employee by the IRS, if it ever comes to an audit. Technically, your mother's POA should be withholding taxes and give her a W2 form at the end of the year. I am not sure what the legal responsibilities of the POA are in this case. An attorney or accountant might be able to advise. Your mother will be liable for handling this correctly (if there is an estate, there may be fines). Also, when I was doing this for my elderly aunt, in her state, it was also required to carry liability insurance. It's best to have an accountant to help you do this correctly. If she only will accept being paid under the table, you have to decide if you want to do things illegally. If you hire through an agency, they take care of all of this (and charge a fee for it).
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Fact sheet #79 from Federal Wage and Hour states that ALL live in domestic help be paid $7.25 an hour or the state minimum wage if it is higher. This includes companions, aides, household help, chauffeurs, etc. Room and board cannot be included as part of pay.

The worker in question is your mother’s employee. You can’t just decide you don’t to be an employer. If you don’t want to be an employer, hire through an agency and let them be the employer.
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If this person drives your LO anywhere and has an accident who do you think is liable? And you haven't seen a driver's license.

Oh and BTW there are plenty of people over 60 "prone to common temptations."
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Also, it may be common to go non-contract. That doesn't make it wise or legal.
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Federal Wage and Hour does not include caregivers, aides and other domestic workers in the same class as as bartenders, waitresses and other tipped workers.
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