Thursday, July 24, 2014

The Pitfalls of Contracting Home Care

www.lknhomecare.com
 Recently, lawsuits were launched against a large In Home Care company regarding their business practices.  In a nutshell, the company acted like a 'Placement Agency', locating workers that would then act as caregivers in private homes.  The workers would be paid directly by the client, and the Home Care Agency would bill the client for a finder's fee.  It's also important to note that the agency would not be licensed as a Home Care provider.

  In this scenario, the worker is actually a contractor working directly for the client, and not the Home Care company.  This means that the client in essence has hired their own employee, and is responsible for all taxes, social security, insurance, etc., that must be filed with state and federal government.  Even if the worker claims "1099 Contractor" status, all payments must be reported by the client, and the contract employee is liable for the payments.  The Home Care company has no obligation to perform any of these duties.  The lawsuits are claiming fraud, neglect, misrepresentation, and concealment of information to name a few.

  Probably the biggest draw to this sort of agreement is that the hourly costs are lower, typically by about %20 when compare to a licensed Home Care Agency.  However, when the liability of maintaining, reporting, and accurately managing the previously mentioned employee relationship is factored in, those savings are quickly lost.  The reality is that liability & costs are easily higher.

  At Home Helpers, all of our staff are employees of the agency.  They have undergone background checks, receive recurrent training, and are covered by our insurance policies.  As employees, all payroll requirements are covered by us.  When shopping for care services, these are critical items to keep in mind!  Be sure to look at the bigger picture!!!  Visit us online at www.lknHomeCare.com to learn more about us and our services.

Bringing useful news to educate our clients is one more way that Home Helpers has been making life easier for over a decade.  Call us today at 704-909-7958.  And as always, you can find us on our websiteFacebook and

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