How to Find a Private Caregiver for an Elderly Parent at Home
Hiring a private caregiver directly , rather than through a home care agency , can reduce hourly costs by 20 to 40 percent and give you more control over who is in your parent's home. It also makes you the employer, with all the responsibilities that entails. Here is how to do it right.
Quick answers
- Private caregivers typically cost $18–$28/hour vs. $25–$40/hour for agency caregivers
- You become the employer , responsible for payroll taxes, background checks, and coverage when they are sick
- Referral networks, Care.com, and local senior centers are good starting points
- Never skip the background check , run a criminal background check plus reference verification
- Have a written contract that covers duties, hours, pay, time off, and termination
Agency vs. Private Hire: The Real Trade-Offs
Home care agencies handle payroll taxes, workers' compensation insurance, background checks, and backup coverage when a caregiver calls in sick. They also charge a markup , typically 40 to 60 percent above what the caregiver earns , to cover those services.
Private hiring eliminates the markup and gives you direct control over who you hire. It also puts all employer responsibilities on you: payroll taxes, insurance, backup coverage, and managing the employment relationship directly.
Private hiring works best when: you have the time and organization to manage employment logistics, you want to build a long-term relationship with a specific caregiver, or the cost difference is significant relative to your family's budget.
Agency hiring works best when: you need guaranteed backup coverage, you do not want to manage employment directly, or your parent's needs are complex enough to require an agency's care management support.
Where to Find Private Caregivers
Care.com and similar platforms
Care.com, Caregiver.com, and similar platforms list individual caregivers who are available for private hire. You can review profiles, check certifications, and read reviews. Always conduct your own independent background check regardless of what the platform provides.
Local senior centers and Area Agencies on Aging
Many senior centers maintain referral lists of local caregivers. Area Agencies on Aging (find yours at eldercare.acl.gov) often have caregiver registries or can refer you to local resources.
Referrals from people you trust
Ask your parent's doctor, a social worker, neighbors in similar situations, or members of a faith community. Personal referrals produce the highest quality candidates and come with informal vetting already done.
Local nursing schools and CNA programs
Certified nursing assistants (CNAs) and nursing students sometimes take private caregiving work. Your local community college or nursing school may have a job board or referral program.
How to Vet a Caregiver Properly
Use a service like Checkr, Sterling, or Hire Right. Do not skip this. Check both national and local criminal records.
Free and available online by state. Required for anyone working with a vulnerable adult.
Call at least two previous employers or clients. Ask specifically: would you hire this person again, did they ever miss a shift without notice, did your loved one like them?
If the caregiver claims to be a CNA, HHA, or other certified professional, verify the credential through your state's certification registry.
Chemistry between the caregiver and your parent matters enormously. Watch how they interact. A technically qualified caregiver who does not connect with your parent is not the right hire.
Your Responsibilities as the Employer
When you hire a caregiver privately, you become a household employer. This creates specific legal and financial obligations.
Payroll taxes: If you pay a household employee more than $2,700 per year (2024 threshold), you are required to withhold and pay Social Security and Medicare taxes (FICA) and may owe federal and state unemployment taxes. Services like HomePay by Care.com or SurePayroll handle household payroll for a monthly fee.
Workers' compensation: Most states require household employers to carry workers' compensation insurance. A caregiver injured on the job while working for you without coverage creates significant personal liability.
Backup coverage: If your caregiver is sick or on vacation, coverage is your responsibility. Build this plan before you need it.
What to Put in the Written Agreement
A written agreement protects both you and the caregiver. It should cover: specific duties and what is not included, hours and schedule, hourly rate and pay frequency, overtime policy, time off and how it is handled, notice required for termination by either party, and confidentiality.
This does not need to be a formal legal document , a clear, signed letter of agreement covers most situations. Have both parties keep a copy.
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Frequently Asked Questions
Is it cheaper to hire a caregiver privately or through an agency?
Private hiring is typically 20 to 40 percent cheaper per hour. However, it comes with employer responsibilities including payroll taxes and workers' compensation that add cost and complexity. The net savings depend on how you manage those obligations.
What background check should I run on a private caregiver?
At minimum: a national criminal background check, a state criminal background check for states where the caregiver has lived, and a sex offender registry check. Services like Checkr or Sterling handle this for approximately $30 to $60 per check.
Do I need to pay taxes if I hire a private caregiver?
Yes. If you pay a household employee more than the IRS annual threshold (currently $2,700), you are required to pay payroll taxes. This is commonly called the 'nanny tax' but applies to all household employees including caregivers.
What happens if a private caregiver is injured in my parent's home?
Without workers' compensation insurance, you are personally liable for medical expenses and lost wages. Most states require household employers to carry workers' comp. Check your state's requirements and your homeowner's insurance policy , some provide limited coverage.
Sources
- IRS Publication 926 - IRS guidance on household employer tax obligations including the nanny tax
- Eldercare Locator - Find local Area Agencies on Aging and caregiver referral resources
- AARP - How to hire and manage a private caregiver for an elderly parent
What is a Senior Move Manager? A Senior Move Manager is a trained specialist who helps older adults and their families navigate moves, downsizing, and care transitions. They handle the logistics so you don't have to.
An SMM can connect your family with vetted local care resources and help you think through the right level of support for your parent's current situation.
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