So, you’re going to hire someone to help take care of an Alzheimer’s or dementia patient. But what do you pay and do you have to give benefits? What about Social Security?

Most people hire caregiver helpers as contractors. This means the other person is not actually an employee and is responsible for taxes, Social Security, etc. You would need to send a 1099-MISC at the end of the year for tax purposes. You should check with a lawyer and your accountant to be sure this is the best alternative for you and to find out what you need to do to avoid having the IRS consider this person to be an employee.

(An easier alternative is to go through an agency, which deals with all of the paperwork. You pay the agency and the agency pays the employee.)

Now, on to how much you should pay. Expect to see fees anywhere from $8 and $15 an hour for someone to care for basic needs, such as feeding, bathing and diapering. If you need someone with a medical background, fees will be higher.

Before you agree to a salary, find out if your new helper expects to be paid for days he or she isn’t needed because of a hospital stay or holiday. Also, you should discuss transportation - whose car is the patient going to be transported to routine medical appointments in?  Are you going to pay mileage if it is the helper’s car? Getting these issues taken care of now helps keep your new helper and you happy.

Posted by on 11.18.2006 • Uncategorized