Your COMPLIANCE team

Why It's So Important

Many people in California are unaware that a person hired to provide care in your home is considered to be a domestic worker. The State of California does not recognize domestic workers as independent contractors (form-1099). Therefore, either the client is the employer, or an agency is the employer. If you decide to hire a domestic worker privately for caregiver assistance, you become the employer in the eyes of the state and federal government agencies.

Employers are required to maintain compliance with all state and federal regulations, including taxes and Department of Labor rules. While some believe that hiring a caregiver under the table is easiest and cheapest option, they may not realize the extreme financial risks of doing so.

The Financial Risks of Hiring a Caregiver Under-the-Table

1. You may be audited for unpaid state and federal payroll tax liabilities

2. You may be sued for Worker's Compensation claims

3. You may be sued for wage, hours, and overtime disputes

4. You may be unable to claim tax benefits for caregiver expenses

5. You may be unable to obtain reimbursement from a long-term care insurance policy

How We Reduce Your Risks

The MyCarePal Compliance Team will take on the tedious tasks required by you as the employer of your caregiver. We help you mitigate tax and legal risks by:

1. Assisting you to obtain an Employer Identification Number (EIN)

2. Providing employee new hire and ongoing reports to state and federal agencies

3. Processing caregiver payroll & tax liabilities according to state and federal rules

4. Preparing and distributing W-2 forms to your employees

5. Maintaining Worker's Compensation insurance through your homeowner's insurance

6. Maintaining employment records to support you in the event of future litigation claims