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Reason being the care receiver wants certain family members hired as caretakers but does not want the responsibility of being the employer and would prefer an agency taking on the responsibility of payroll, taxes, liabilities, etc. (yes, the care receiver understands this may cost more money for his care)

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This happens all the time. It is a way to make sure payment for care is compensated legally.

It does give the agency a considerable amount of money just for managing the caregiver's time and wages. It would be cheaper to get an elder law attorney to prepare a care agreement then use a payroll company to manage the financial side of things.
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TK, I would not recommend using an agency for this.

If all the family is in agreement with being the paid caregivers, then you should find either a labor leasing company or a payroll processing company.

The client (care recipient) will hire one of these companies to handle the employees. Weekly or bi-weekly timesheets will get sent, payroll checks will be cut and he will get a bill or they will charge his credit card, however it's been set up.

This will allow him to pay everyone a good wage and costs about 25% on top of payroll. These companies will be the employer of record and they handle all of the legal requirements for your city, state and federal requirements.

It alleviates the need for him to establish tax numbers, unemployment accounts, insurance policies, etc. This is truly the best way to have employees without being an employer and being 100% legal and everyone is covered.

An agency is going to charge 100%+ over and above whatever you are paid, usually starts at minimum wage. They won't be able to pay what he asks because of their company policies.
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"care receiver wants certain family members hired as caretakers.."

Yes, very reasonable someone want trusted family members to be their caregivers. This is common

But what a refreshing change this gentleman wishes to compensate family financially.

I would just throw the question out there: do the family members requested want to blend their roles as family members & professional caregivers?

It could work.. but I found it changed the dynamic too much & not in good ways..
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This is done in Pennsylvania. Probably part of their Medicade program or some government agency.

The ads say that the agency will train and hire you. You will get benefits. Then they will allow you to care for a family member or a friend. The family member or friend probably has to fit a certain criteria.

All you can do is call around to agencies and see if your State allows this. Or call your County Social Services.
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Geaton777 Jul 2022
I don't think the hired LO makes a very good wage and I don't think they can work full-time -- this is based on my knowledge of a similar situation in which a family with a severly disabled child needed a lot of caregiving and the single mom couldn't afford it but a LO went through the training program. My recollection is that this job alone didn't provide enough hours for the caregiver to be able to support themselves. This was about 20 years ago in a different state, so maybe things have changed, but I don't think so otherwise everyone would be taking advantage of this option.
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My BFF hired her DIL to care for her husband. All done above board and DIL applied to the agency with this up front. No problems for anyone. DIL did also work for other clients, and still does since her FIL has passed 2 years ago.
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Geaton777 Jul 2022
Pamzimmrrt, that's fantastic that they were able to do that. Advantages of working through an agency is that they would be required to provide subs, and are also bonded and insured. My thought is that it would be less expensive to just hire privately and use a bookkeeper, then hired LO could make a higher hourly rate that they keep. You can even hire out reliable bookkeeping services online nowadays. It's possible the agency would charge more for that LO since they know they can for someone "exclusive" and to also cover for any internal dissent from other employees who wished they could have the same schedule.
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I doubt an agency would hire family members and have them assigned to "mom". As the employer they would have the right to assign them to any job that came up.
Follow the suggestion of Geaton777.
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I'm an employer, here's what I would do: hire the family member privately, have a legally written & reviewed contract between the family care receiver/their PoA and the family member/employee so that everyone is on the same page (outlines wage, work and payment schedule, OT, vacation/sick, "benefits", etc. Then hire an independent bookkeeper to do all the payroll and taxes and admin stuff.

An agency will probably not be willing to do what you suggested because it is a headache for them...too many reasons to go into here and now. Trust me, it would be a headache and not worth it for them. It may not even be allowed in your state.
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I havent heard of it before, but now I have. I can't see how or why it would not work if the hiring agency (the caretaking company), the senior him or herself, and etc are not happy with the situation. Does seem costly to me, but that's because the funds go to both the caregiver and to the company.
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JoAnn29 Jul 2022
Its done in PA all the time.
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