When hiring a caregiver for your loved one in Florida, understanding payroll requirements and staying compliant protects both your family and your caregiver. This comprehensive guide breaks down everything you need to know about paying caregivers in Florida, from minimum wage laws to tax obligations.

Employee vs. Independent Contractor: Understanding the Relationship

For in-home care, the IRS classifies caregivers as household employees rather than independent contractors. Even if you found your caregiver through a job platform or referral service, once you hire and supervise them directly, you become their legal employer.

This distinction is crucial because it determines your payroll and tax responsibilities under federal and Florida state law.

Florida Caregiver Wage Requirements in 2025

Minimum Wage Standards

Florida's minimum wage will be $14.00 per hour as of September 30, 2025, which is significantly higher than the federal minimum wage of $7.25. The minimum wage will increase to $15.00 per hour in September 2026 as part of a voter-approved constitutional amendment.

All caregivers in Florida must be paid at least the state minimum wage, as it exceeds the federal requirement.

Overtime Requirements

Overtime rules depend on your caregiver's living arrangement:

• Live-out caregivers: Must receive time-and-a-half pay for any hours worked over 40 in a workweek

• Live-in caregivers: If you hire a live-in caregiver directly, you must pay minimum wage but are not required to pay overtime. However, third-party employers (such as agencies) that hire live-in workers are required to pay overtime. You can learn more about live-in caregivers and 24/7 care here.

Important note: Overtime is calculated based on hours worked in a week, not for working weekends or holidays unless specifically agreed upon in your employment contract.

Holiday Pay

While Florida law doesn't require holiday pay, offering time-and-a-half for major holidays is a common practice that helps attract and retain quality caregivers. You can read more about holiday pay here.

Tax Obligations for Florida Families

Social Security and Medicare (FICA) Taxes

If you pay a caregiver $2,800 or more in 2025, you must withhold and pay FICA taxes:

• Employee pays: 7.65% (6.2% Social Security + 1.45% Medicare)

• Employer pays: 7.65% (matching contribution)

Federal Unemployment Tax (FUTA)

The $1,000 per calendar quarter threshold continues to apply for FUTA. If you pay $1,000 or more in any calendar quarter, you're required to pay federal unemployment tax, typically 6% of the first $7,000 in wages.

Florida State Tax Considerations

Florida has no state income tax, which simplifies tax obligations for household employers. However, you must still comply with all federal requirements.

Workers' Compensation Insurance

Florida doesn't require workers' compensation insurance for private household employees, but many families choose to obtain coverage for additional protection.

Year-End Reporting Requirements

At year's end, you must:

• Provide a W-2 form to your caregiver

• File Schedule H with your federal tax return

• Report all wages and taxes paid during the year

Best Practices for Florida Family Employers

Create Written Agreements

Document everything in a comprehensive care agreement including:

• Hourly wages and pay schedule

• Job duties and expectations

• Work hours and overtime policies

• Holiday and time-off policies

• Mileage reimbursement rates (currently $0.70 per mile for federal tax purposes)

Maintain Accurate Records

Keep detailed records for at least four years:

• Timesheets and work schedules

• Payroll records and tax withholdings

• Copies of all tax forms and filings

• Documentation of any workplace incidents

Consider Professional Support

Payroll services and senior care facilitators like Clara provide invaluable support by:

• Automating tax calculations and withholdings

• Ensuring compliance with changing regulations

• Handling W-2 preparation and filing

• Managing holiday coverage and overtime calculations

How Clara Simplifies Florida Caregiver Compliance

Managing payroll and compliance for senior care doesn't have to be overwhelming. Clara serves as your trusted facilitator, connecting you with experienced caregivers while handling the complex administrative requirements.

Clara's platform includes:

• Automated payroll processing with proper tax withholdings

• Built-in compliance tools for Florida and federal requirements

• Expert support for holiday pay and overtime management

• W-2 preparation and tax filing assistance

Staying Current with Changing Laws

Florida's employment laws and minimum wage requirements continue to evolve. By partnering with Clara, you ensure your caregiving arrangement stays compliant with current regulations while you focus on what matters most—your loved one's health and happiness.

Ready to Get Started?

Don't let payroll complexity prevent you from providing the best care for your loved one. Clara's expert team makes Florida senior care compliance straightforward and stress-free. Contact Clara today to learn how we can help you navigate the legal requirements while creating a positive caregiving experience for everyone involved.

This guide provides general information about Florida caregiver employment laws. For specific legal advice regarding your situation, consult with a qualified employment attorney or tax professional. Tax thresholds and rates are subject to change.