Friday, October 4, 2013

About Workers’ Compensation Insurance for Privately Employed Senior Caregivers

If you have a domestic employee such as a senior caregiver, it's very important to obtain workers' compensation insurance at the time the employee begins work. Don’t delay! To obtain workers’ compensation insurance, you must be registered with the IRS as an employer, and the caregiver must be paid on the books. Without this insurance, you will be personally held liable in the event that a worker decides to sue you after being injured on the job. Elder care involves a great deal of manual labor in the form of helping the senior get in and out of the bed or car, which can often result in back injuries. As a result, the possibility of a workplace injury triggering a workers’ compensation claim is a big risk for families who do not pay their domestic employees on the books.

Although some people feel that their employee would never sue for workers’ compensation, the fact is the caregiver has the legal right to compensation for injuries incurred on the job.  In the event of an injury that involves expensive medical care or even disability, suing an employer is often the only option available to pay for medical care.

Although paying an employee directly without reporting wages to the government can appear very attractive to both you and your domestic employee, the risks to families who do not pay their domestic employees on the books are simply too high.  Beyond the moral imperative to pay a domestic employee on the books, there are practical reasons that make this an essential step to insuring a secure future for all involved.

HomeWork Solutions’ Kathleen Webb is a nationally recognized expert on household employment tax matters. HomeWork Solutions assists families nationwide with their household employment tax compliance, and all CareLinx clients have access HomeWork Solutions services for no additional cost when using CareLinx to manage their caregiver online.

1 comment:

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