Frequently Asked Questions
Is CareFamily the same as a home health care agency?
No, we are not a home health agency. Unlike an agency, this option allows you as a private family to choose the private caregivers you want to meet, interview, and hire. You have the flexibility to determine your loved one’s schedule directly with the caregivers you select.
When is my information shared with others?
What are normal tasks for a caregiver?
Caregivers can provide companionship, light housekeeping, cooking, errands and transportation. More experienced aides can do bathing, dressing, transferring, assistance with toileting and incontinence, medication reminders and much more.
Who hires the caregivers?
The family does, and we make it simple. All the payment processing, tax support, bonding and insurance is seamlessly handled for you.
Is there a cancellation policy?
You employ the caregiver at will. That means that you or the caregiver can terminate employment at any time, with or without notice. There is no long-term commitment; you can stop services with a caregiver at any time.
Is there a minimum number of hours per week?
No, there is no minimum number of hours per week. The schedule is based on your needs and the availability of your caregiver.
What is involved in your caregiver background checks?
We provide a complimentary background screening on caregivers of your choice. The screening is performed by a respected third-party national provider who is responsible for providing accurate screening results. These multiple background screenings include social security verification, sex offender registries checks, barrier crimes check (neglect, elder abuse and child abuse), and a criminal records check (national level), DMV check (if caregiver has provided Driver’s License Number) as well as 7-year felony current county level check. We encourage you to review the background screening results prior to making a hiring decision.
How do families pay for care?
Each week, families will receive a notification that their caregiver’s invoice is ready for their review. Families have the opportunity to make changes if necessary, before payment is processed via credit card or bank draft. Their payment information is always stored securely.
Do families pay the caregiver directly?
No, we process all payments. This allows you the convenience of not writing checks or needing cash.
Do I have to pay my caregivers overtime?
Overtime requirements are not determined by the number of hours or by the type of pay (hourly or salary); they are determined by the type of work. The FLSA requires domestic workers be protected by overtime laws. The standard workweek is defined as 40 hours in a 7-day period. The overtime rate of compensation is 1.5 times the regular hourly rate (time-and-a-half). To see your state specific overtime requirements, click here.
How does attendance monitoring work?
Upon arrival at the senior’s home, the caregiver clocks in by dialing a tollfree number from the home phone (also known as “telephony”). This will immediately record the start time. If for some reason the caregiver does not arrive on time, a family member can be alerted by phone and be immediately connected with the scheduled caregiver if desired. Upon completion of a shift, the caregiver will clock out to record the departure time.
During this checkout call, caregivers may also record an audio care note in which the caregiver can fully describe the day’s activities. The audio care note can then be sent to the family in audio or text form. Clock in and clock out information is used to create invoicing.
How are taxes handled?
CareFamily connects you with caregivers you hire directly as a Domestic Household Employer. CareFamily along with HomePay works to take all the risk of determining tax payments and filing returns for you. Each week, CareFamily's invoice will reflect any FICA (Social Security and Medicare) taxes, Federal Unemployment Tax and State Unemployment Insurance Tax liability incurred on the wages of your caregiver. We will make all associated tax deposits and remit all required state tax filings on your behalf. At the end of the year, we'll provide you with a document called a Schedule H, which is a supplement to Form 1040 used to report household employment activity to the IRS. Anyone who hired a household employee during the year must attach a Schedule H with their person federal income tax return (Form 1040) Also, at the end of the year, we'll provide your household employee with a W•2 so they can file their income taxes easily.
• The employer's portion of Medicare & Social Security (FICA). The total rate is 7.65% of employee's wages
• Federal Unemployment Tax Assessment (FUTA). The FUTA rate is 6.0% on the first
$7,000 in wages, but the rate is dropped to 0.6% when the state unemployment tax has been paid in full on a timely basis
• State Unemployment Tax Assessment (SUTA). This rate varies by state
What is withheld from my employee?
Payroll taxes: Social Security, Medicare and all applicable state taxes are withheld from your employees pay each period. Income Taxes should also be withheld in accordance with the employees Form W-4 selections. If no W-4 is on file, the default withholding is Single and 0 deductions.
What is withheld from me as the employer?
Employer’s portion of Social Security and Medicare as well as state and federal unemployment taxes.
What is FICA?
The Social Security & Medicare taxes (collectively known as “FICA”) are waived for both the employer (7.65%) and the employee (7.65%) if the employee earns less than $2,100 in a calendar year. Once the threshold is crossed, FICA tax obligations become effective on the first dollar of wages. For that reason, unless a family is certain wages will remain below the threshold, we advise withholding the employee’s FICA taxes from each paycheck. If the threshold is crossed, the proper tax dollars are already collected for remittance to the IRS. If the threshold is not crossed, the withheld tax dollars are simply returned to the employee.
What is FUTA & SUI?
FUTA is Federal Unemployment Tax Act and SUI is State Unemployment Insurance
FUTA & SUI threshold kicks in as soon as the employer pays a total of $1,000 the quarter collectively across wages paid to all caregivers. Then, once each individual caregiver earns $7,000, they cap out of this tax.
What is a FEIN or EIN?
A Federal Employer Identification Number (FEIN or EIN) is a unique number to you that the IRS assigns. It’s used to identify tax accounts of employers. If you do not have a FEIN we will apply for one on your behalf. If you do have a FEIN, but are unsure of the number, you can find it on a past tax return or call the IRS at 1-800-829-4933 to obtain it.
What do you provide at the end of the year for tax purposes?
In early January (or after your final billing) our finance department will charge an End of Year fee of $100. The $100 fee is for the Year End Package which includes everything you and your employee(s) need to complete your personal tax returns. It’s a flat fee, even if you had multiple employees in the year.
If a client has to pay unemployment to a caregiver and the withholding's done throughout the years is not enough to cover the unemployment what happens?
Luckily, this won’t ever be the case. The client pays unemployment insurance to cover him/her if a caregiver is granted benefits, so that payment is covered by his insurance tax (which essentially is working like an insurance premium). Instead, when the state reviews their tax rate each year, they may decide to increase the tax rate if the employer seems more risky to have caregivers file unemployment. The more claims they have, the higher their tax rate (theoretically).
If a brand new client employs a caregiver for 2 weeks and then lets them go, and the caregiver is granted unemployment what happens?
The state accounts for this as well. Each state has a specific minimum amount of time and/or amount of wages and employee has to be with or earn with an employer before they are eligible to be granted benefits. This is usually around 12 weeks but does vary by state. The smallest minimum we’ve ever seen was 4 weeks.
Does the Unemployment office ever bill the client for these wages per se?
Never! Clients do not receive a bill directly. This will always come through their unemployment tax account. If benefits are paid, they may receive statements each quarter called “Benefit Charge Statements” that sometimes look like a bill but are actually just summaries of what benefits were paid out and are for the employers’ records.