Is in-home care cheaper if we hire a caregiver privately instead of through an agency?

Hiring a caregiver directly usually costs less per hour, but the family takes on the jobs an agency normally handles: employer taxes, insurance, backup coverage, screening and supervision.

What you may be giving up:

• Taxes and payroll. In many cases a privately hired caregiver is legally your household employee, which can mean withholding, employer payroll taxes and filings. A tax professional can confirm your obligations.
• Insurance. Agencies carry workers' compensation and liability coverage. If a privately hired caregiver is injured in your home, the family may be responsible; check with your homeowner's or renter's insurer.
• Backup. When an agency aide is sick or on vacation, the agency usually sends a replacement. With a private hire, coverage gaps fall on the family.
• Screening and training. Licensed agencies check background and certification and train aides. With a private hire, you verify everything yourself.
• Clinical oversight. In New York, licensed agency aides work from a care plan and are supervised by a nurse.

Private hiring can work well when the family is organized, the needs are simple and there is a reliable backup plan. When care is complex or someone lives far away, the extra agency cost often buys peace of mind.

If you would like to compare, our coordinators can explain our private-pay rates at (718) 232-2777.