The Home Health Care industry is growing at a tremendous rate. Even with America’s ever slowing economy Home Care is still in high demand. Workers in the field of Home Health Care see this happening first hand. Instead of having Certified Nurses Aides come in home and do hourly care, Home Care sees an ever growing need for Home Health Aide Live In Services. This puts outstanding stress on Home Health Care Agencies to fill not only the clients physical and mental needs but also the financial needs as well. Not all Home Health Care Agencies can support these demands of Live In Services. This kind of valuable service gives the client a companion for care twenty four hours a day, seven days a week at virtually half the cost of hourly Home Health Care Services.
Home Care Agencies are a dime a dozen, finding out which one is ready to help you out can be a daunting and stressful task. For Home Care Services on a Live In basis there are things to look for and specific questions you can ask to help you decide if a particular Home Health Care Agency is right for your loved ones. For instance the differences between a 1099 agency and a w-2 agency are night and day to how services are brought to the client/s. Below is a comparison between a 1099 Agency and a w-2 Agency.
1099 Agency –
1). Works like a temp agency by sub contracting out caregivers that register with them.
2). Charges either the client or caregiver (sometimes both) a “finders fee”
3). All taxes (Workers Comp, Unemployment etc.) are left to the client and caregiver to pay.
4). If caregiver has an emergency and needs relief, it is the client/caregivers’ responsibility to find coverage.
5). Has a typically lower rate than w-2 agencies and often can be negotiated with a caregiver.
6). 1099 Agency has no responsibility to the client after caregiver is selected and fees are paid.
W-2 Agency –
1). Works as the employer to all caregivers that register with the agency.
2). No fee for finding caregivers to work for the client.
3). All taxes are paid by the agency, none are left to the caregivers/clients to pay.
4). Time off taken by the caregiver is covered by the agency or any replacements for caregivers are also done by the agency at clients discretion.
5). Has typically a higher rate than 1099 agencies. Usually because they are paying all state and federal taxes.
6). W-2 Agency works directly for the client and their families.