Grey Market Risks
Know the risks of hiring privately!
SALARY AND TAX RISKS
Board of labor requires aides to be paid for all hours worked. No flat rates! Family is required to pay Social Security, Unemployment, Medicare and Payroll tax. Failure to meet this obligation may result in civil fines and possible criminal penalties.
LIABILITY AND CARE RISKS
Family is ultimately responsible for any liability due to an injury to the person being cared for or the caregiver and would bear full responsibility for costs and Workman’s Compensation. Families are responsible for the duties of an aide under their employment. Any harm without RN supervision could result in civil or criminal penalties. No back up plan for coverage on holidays or sick days.
ABUSE AND EXPLOITATION
A reference from a friend is not enough! Without an actual background check, the risks for manipulation and exploitation are markedly greater.
Paying money to someone under the table is not a legal disbursement of funds and will be counted as a “gift” in look back periods for Government Benefits resulting in a penalty or even disqualification of funding for care.