The Employer Line Decides Who Carries the Risk: Read Who Is on the Aide's Payroll Before the First Visit
Before the first visit, find out whether the aide works for the agency, for you directly, or as an independent contractor, because that one line decides who handles taxes, injury coverage, and replacement when the aide does not show.
Most families read a home care agreement for the price and the hours. The line that matters more is the one that names who employs the person who walks into your parent's house. That line decides who withholds tax, who carries injury coverage, who answers for damage in the home, and who finds a replacement when the aide is sick.
Local option: New Plan Care gives families in the St. Louis area in-home help so a parent can stay home: companionship, help with bathing and dressing, meals, and overnight care. Call (314) 405-0887.
The three arrangements
An aide can be employed by the agency, hired directly by the family, or engaged as an independent contractor. The agreement should say which one applies in plain words. If it says the aide is an independent contractor, read what that means for taxes and for who carries insurance. The IRS looks at how much control the person who pays exercises over how, when, and where the work is done, and the label in the contract does not settle the question on its own. If the agreement is unclear, ask the agency to state the classification in writing before you sign.
What to find on the page
- The name of the employer on the agreement, and whether that name matches the company that will send the invoice.
- Who withholds payroll taxes and who files the paperwork for them.
- Who carries workers' compensation for an injury the aide suffers in your home, and what Missouri workers' compensation rules say about that arrangement.
- Who carries liability for damage or injury the aide causes, and whether the agency's insurance names the family.
- What happens if the aide cannot come. Is there a replacement obligation, a time limit for it, and is there a charge for the replacement?
- How the aide is screened, and whether the screening is described in the agreement or only in a brochure.
Ask before you sign
Ask the agency for a certificate of insurance and check that it names the coverage described in the agreement. Ask for the replacement policy in writing. Ask whether the aide is bonded or covered by a fidelity policy if money or property in the home is involved. A written answer you can point to later is worth more than a verbal assurance during a busy intake call.
If the classification is still unclear after the agency answers, or if you are being asked to sign a contract that makes you the employer, stop and get a second reading. The Missouri Bar can refer you to a lawyer for contract and employment questions, and that is where legal advice starts. A tax preparer can explain the household employer filing that applies if you hire directly.