Do you really know who you are hiring?
What are your responsibilities when you hire an Independent Contractor in your home in California?
By hiring a Caregiver who is an Independent Contractor (“IC”) to work in your home, you and your family assume the responsibilities of an employer, such as:
- Paying Medical Bills – If the Caregiver is injured or claims a work-related injury
- Paying Federal and State Income Taxes and Supplemental Security Income (SSI) – If the Caregiver fails to pay the appropriate amounts, including penalties
- Paying for Unemployment and Past Employment Taxes – If the Caregiver is “let-go/laid-off” and files for unemployment
- Complying with All State Labor Laws and Codes
- Becoming Liable for any and all Damages Claimed by your Caregiver
- Paying fines up to $50,000 for failing to pay Workers’ Compensation insurance for someone working in your home in California
What are the likely triggers of an audit?
- The Caregiver gets hurt and triggers a Workers’ Compensation claim. The client (and family) is suddenly liable for paying medical bills, lost wages, back taxes and penalties.
- The Caregiver is fired (or is no longer needed) and triggers an Unemployment Insurance claim
The client (and family) must pay unemployment benefits, back taxes and penalties.