Senior Caregiving
Arranging care for a loved one? Let us handle the payroll and taxes.
When a parent needs care at home, most families focus entirely on finding the right person. The payroll and compliance piece comes later, often unexpectedly. Whether you’re just starting or you’ve already been paying someone for a while, we’ll help you get it right.
Arranging senior care may be one of the most important decisions your family will make.
Arranging in-home care for an aging or disabled parent is personal, often urgent, and almost always emotionally charged. Most families are thinking about the care itself, not the paperwork that comes with it.
But when you bring a caregiver into your home and pay them directly, you may have taken on the role of a household employer. It depends on your specific arrangement, and we’re here to help you understand exactly what applies to your situation.
We work with senior care families every day. It’s our job to take care of the payroll and compliance responsibilities so you can stay focused on what matters most: your family. Our job is to handle the compliance piece quietly and completely so you can stay focused on your family.
- Many families discover their obligations months into a care arrangement, often triggered by a CPA, an IRS notice, or a question about benefits.
- If that's where you are, you're not alone and it's not too late. We can go backwards and bring you into compliance from wherever you're starting.
- Whether your parent lives with you, down the street, or in another state, we handle the compliance for their situation specifically.
Not sure if you're an employer?
What senior caregiver payroll actually involves.
If your caregiver is classified as a household employee, here is what the compliance picture looks like and how we handle it for you.
If your caregiver qualifies as a 1099 independent contractor rather than a W-2 employee, the compliance path is different. See below for guidance on how to determine which applies to your arrangement.
What HomeWork Solutions does for senior care families.
We handle everything from the initial W-2 vs. 1099 determination through ongoing payroll, filings, and compliance monitoring. Here’s what that looks like across our three service tiers.
Senior care families often have arrangements that go beyond a standard nanny situation: live-in caregivers, multiple caregivers rotating shifts, family members living in different states, or long-term care insurance claims that require detailed time records. We handle all of these.
W-2 employee or 1099 contractor: Which applies to your caregiver?
This is the question almost every senior care family asks first. The answer depends on your specific arrangement, and getting it wrong has real consequences.
The IRS determines worker classification based primarily on who controls the work: what is done, how it is done, and when it is done. For most in-home senior caregivers, the family directs the schedule and the duties, which typically means the caregiver is a household employee, not an independent contractor.
However, there are genuine cases where 1099 treatment may apply, particularly when a caregiver works independently for multiple families and controls their own schedule. The classification depends on facts, not preference.
Use this as a starting guide. A 10-minute call with one of our household payroll specialists can further guide you.
If you’ve been paying a caregiver as a 1099 and are unsure whether that was correct, we can assess your situation and help you resolve it. We’ve done this many times. No judgment, and no obligation.
Frequently Asked Questions
I've heard I can pay my parent's caregiver as a 1099. Is that true?
Sometimes, but not always. It comes down to who directs the work. If you set the schedule, define the duties, and the caregiver works primarily for your family, the IRS would likely consider them a household employee. A quick call with our team is all it takes to know exactly where your situation stands.
This feels overwhelming. I not sure I have time to deal with this right now.
That’s exactly why we’re here. Arranging care for a parent is one of the most demanding things a family goes through. Our team can assess your situation in 10 minutes and guide you through what you need to know. You won’t have to figure it out yourself. Most families are surprised how little time it takes to get set up.
My parent's caregiver only works a few hours a week. Does this still apply?
Possibly. The IRS threshold is based on total wages paid in a calendar year, not hours per week. If you pay a caregiver more than the IRS threshold in a year, payroll tax obligations apply regardless of schedule. Part-time and occasional arrangements can still trigger full employer obligations. We’ll tell you exactly where the line is for your situation.
We've already been paying a caregiver for months. Can this still be fixed?
Yes. Many families discover their compliance obligations months or years into an arrangement, often when a CPA raises a flag or when a caregiver asks about unemployment benefits. We can reconstruct payroll records, file late returns if needed, and bring you into full compliance from wherever you are. We can even help you determine the penalties for late filings and assist with the transfer of the funds due in most cases.
My parent(s) caregiver lives in a different state. Does that make things more complicated?
It can. Multi-state household employment involves compliance requirements in both states, and the rules differ significantly from state to state. This is one area where many payroll providers fall short. We handle multi-state arrangements every day, it’s one of our core capabilities.
Families across the country trust HomeWork Solutions.
“We were referred to Home Work Solutions by our CPA and we couldn’t be happier with the service we’ve received. The communication from their staff has been exceptional. They were professional, patient and helpful during my many requests for guidance. Knowing that our caregivers will be paid on time and all of the taxes and other paperwork are being processed correctly is such a relief for me.”
— KRF
Let's make sure your parent's caregiver is paid correctly.
A free 10-minute consultation will tell you exactly what classification applies, what filings are needed, and how we handle it from here.