The Department of Labor`s classification guidelines for contracted self-employed workers following a July 2015 U.S. District Court ruling on home health care. In Hughes v. Family Life Care, Inc., the applicant brought an action against Family Life Care, Inc. (FLC), which it had not paid for overtime and other facilities under the Fair Labor Standards Act, 29 U.S.C [S]S] 201-219 (FLSA). FLC asserted that it was an independent contractor and was exempt from FSF protection. The Tribunal indicated that under the FLSA, a person is designated as employed or self-employed based on the economic reality of the parties involved (National Association for Home Care & Hospice, 2015). Assessing economic reality requires the application of several factors to determine whether a person is in business for himself or whether he or she is economically dependent on an established employer to earn a living (U.S. Department of Labor, 2015). If we apply Hughes` facts to these factors, we can see how the U.S. North Florida Court concluded that she was an employee and not an independent contractor (Hughes, 2015). January 31 – Form W-2 is used to report gross wages and deductions.
An employer must complete this caregiver form at the end of the year in order to submit taxes and provide the caregiver with copies B, C and 2. In addition, Form W-2 Copy A and Form W-3 (Transmission of Salary and Tax Returns) must be submitted to the SSA either electronically or on paper. To submit Form W-2 and Form W-3 electronically, which is free of charge, click here. Once the level of care has been set, a job description as detailed as possible should be written. You will want to indicate how many hours and days per week this care is needed and what particular skills/trainings are needed, such as.B experience with Alzheimer`s/dementia care. All duties that the caregiver must perform must be included in the job description. This could include: regional economic factors have a big influence on the hourly rate paid by independent nurses. In a few remote areas, nurses make a minimum wage. In most places, independent nurses are paid between $10 and $20 an hour. The average hourly rate for home care agencies is available here.
Independent nurses are usually paid 30% less than home care agencies. Calculating taxes and withholding taxes, as described above, is only half the challenge of employing an independent caregiver for your loved ones. The organization must also be paid the taxes they owe, plus taxes withheld by employees, at the appropriate time of the month, quarter or year. The court found that Hughes met the definition of „employees” because she was a Certified Nursing Assistant (CNA) and had entered into a contract through a nurse registry for the provision of home care and home housekeeping services to a patient. FLC is active in home-healthcare and Hughes was a CNA who performed essential tasks for this type of activity. . . .