It’s a question many families ask when they meet a wonderful caregiver: “Can I just hire her?”

The answer is yes—you can directly employ a caregiver for your loved one. However, becoming a household employer comes with important legal, financial, and practical responsibilities. Here’s what you need to know to make this arrangement work smoothly and safely for everyone involved.

Why Choose Direct Employment?

Directly hiring a caregiver—sometimes called "independent hire" or “private home care”—offers several benefits:

• Cost Savings: You often pay less than you would through a traditional agency, since you’re not covering agency overhead.

• Control and Flexibility: You choose who provides care, set the schedule, and customize duties to your loved one’s needs.

• Personal Relationship: Direct hiring can foster a closer, more consistent relationship between your family and the caregiver.

But with these advantages come new responsibilities, including payroll, taxes, insurance, and compliance with employment laws.

Key Steps to Directly Hiring a Caregiver

1. Assess Your Needs

Start by outlining what kind of care your loved one requires. Consider:

• Personal care (bathing, dressing, toileting)

• Meal preparation and housekeeping

• Medication reminders

• Mobility or dementia support

• Companionship

The more specific you are, the better you can match the right caregiver to your needs. Not sure what a caregiver does? Check out our blog on 9 essential duties a caregiver might perform.

2. Finding and Vetting Candidates

• Word-of-Mouth: Ask friends, family, or healthcare professionals for recommendations.

• Community Resources: Local senior centers and support groups can be valuable sources.

• Online Platforms: Sites like Clara connect families with thoroughly vetted, background-checked caregivers.

Vetting Tips:

• Check references and employment history.

• Verify certifications (CNA, HHA, CPR, etc.).

• Run a criminal background check (in California, verify registration as a Home Care Aide).

• Conduct a paid trial period to ensure a good fit.

3. Draft a Written Employment Contract

A clear, written agreement protects both you and the caregiver. It should outline:

• Duties and responsibilities

• Work schedule and pay rate

• Overtime, holidays, and time-off policies

• Confidentiality and privacy expectations

• Termination conditions and notice requirements

Both parties should sign and keep a copy. Learn more about the importance of contracts for domestic workers (especially caregivers) here.

4. Understand Your Legal and Financial Responsibilities

When you hire a caregiver directly, you become a household employer. This means you’re responsible for:

Payroll and Taxes:

• If you pay a caregiver $2,700 or more per year (2024 threshold), you must withhold and pay Social Security, Medicare (FICA), and unemployment taxes.

• You may also be responsible for federal and state unemployment taxes, and possibly state disability insurance.

• Even if not required, consider offering to withhold income tax if your caregiver requests it.

Workers’ Compensation Insurance:

• In California, you must have workers’ compensation insurance if your caregiver works at least 52 hours or earns $100 in a 90-day period.

• This insurance protects you and your caregiver in case of a workplace injury and is legally required in most cases.

Labor Law Compliance:

• Follow state and local minimum wage and overtime rules.

• Provide paid sick leave and rest breaks as required by law.

• Maintain accurate payroll records and provide pay stubs.

Consult a tax professional or payroll service like Clara if you’re unsure about these requirements. If these responsibilities have got you thinking, "Why don't I just pay under the table?", check out this article.

5. Ongoing Management

• Monitor and Review: Check in regularly with the caregiver and your loved one to ensure satisfaction and address concerns.

• Adjust as Needed: Be prepared to modify the care plan or schedule as your loved one’s needs change.

• Backup Plans: Have a plan for coverage if your caregiver is sick or unavailable—direct employment means you’re responsible for finding replacements. This is another area where Clara can help.

Pros and Cons of Direct Employment

How Clara Can Help

Clara specializes in making direct employment easier for families. With Clara, you get:

• Access to a network of thoroughly vetted, experienced caregivers

• Support with drafting contracts and job descriptions

• Payroll, tax, and compliance management—including workers’ compensation and insurance

• Ongoing support and backup care options

Clara’s approach lets you enjoy the cost savings and personal touch of direct hiring—without the administrative headaches.

Conclusion: Direct Hiring Can Be Empowering—If You’re Prepared

Hiring a caregiver directly can be a wonderful way to provide personalized, flexible care for your loved one. But it’s essential to understand your role as an employer and take the necessary steps to protect your family and your caregiver.

If you’re ready to explore direct employment—or want help with any step of the process—reach out to Clara. Our team can guide you through every detail, from finding the right caregiver to managing payroll and compliance, so you can focus on what matters most: your loved one’s well-being.

Clara is here to make in-home care simple, safe, and tailored to your family’s needs. Contact us today for a free consultation or to learn more about how we can help you hire—and employ—a great caregiver, the right way.