The US Department of Labor on September 17, 2013 issued revised rules within the Fair Labor Standards Act (FLSA) that impact employers of senior caregivers that go into effect January 1, 2015. A key revision is the definition of what constitutes companionship care.

Why is defining 'companionship care' important?

Today, all senior caregivers who provide companionship care in the private home of an individual with disabilities or the elderly are exempt from the minimum wage and overtime protections of the FLSA, and are defined as providing “companion care services.”  The tasks and duties that constitute companionship care today are rather broad, and the rules that go into effect January 2015 significantly narrow the tasks and duties definitions.  While some privately employed companions will continue to fit the designation of companion caregivers, the new rules will not permit agency-employed caregivers to be classified as companions, period.

Agency-employed caregivers will all be covered by minimum wage and overtime FLSA protections. Agency-employed caregivers may not be classified as companions for wage and hour compliance. Only privately employed senior caregivers providing bona fide companionship care services may qualify for this exemption.

Families of aging seniors are confronted with many choices as they navigate options to help maintain a healthy and productive life for elderly family members.  Home safety, medication management and transportation are key concerns for every family facing the naturally changing capacities seniors face as they age.  In fact, according to the Congressional Budget Office, one third of seniors aged 65 and over need some assistance with activities of daily living such as dressing and personal hygiene, shopping and preparing meals

According to the U.S. Congressional Budget Office, one third of seniors aged 65 and over need some assistance with the activities associated with daily living.  Facing the need for such assistance is often greeted with resistance and disappointment by the senior herself, and concern and worry on the part of her family members.

HomeWork Solutions provides professional payroll and tax services to household employers, nationwide. Our company has more than 20 years of experience helping families comply with their household employment payroll and taxes.  Our office is staffed with 18 payroll professionals and 2 interns 100% dedicated to simplifying this complicated process for YOU!

The IRS is increasing its focus on improperly classified domestic workers, including those hired to as senior home care professionals.

An adult 18 years of age or older who works in your private home and to whom you pay more than $1900 in cash wages (as of 2014) per year is subject to payroll tax obligations.  Distinguishing between an independent contractor and an employee is crucial to remaining in compliance with IRS regulations.

Negotiating a salary is never a comfortable situation; both parties involved will be looking for what is best for them, individually.  The key to establishing a good relationship with your household employee right from the beginning, and to succeed in the negotiation, is to think like you are part of a “Win Win” situation, where both parties win and are happy with the result.  A happy household employee will perform better and make your life easier – That’s a fact!

Special thanks to our guest blogger Anna Gale from CareLinx. CareLinx helps you easily screen, hire and manage quality caregivers who match your specific needs and budget. Save up to 50% on Home Care.

As part of National Payroll Week, payroll services and financial services firms are participating in Paycheck Literacy Money Matters National Education Day today. Volunteers will be visiting high schools and youth groups nationwide to teach teens  about the way paychecks are calculated, the payroll withholding system and electronic payment methods like direct deposit.

Payroll, by definition, is the sum of wages, bonuses and deductions paid to an employee for a job performed in a period of time.   Payroll is one of the most time sensitive and crucial areas in a household employer’s relationship with their household staff for a variety of reasons:

(3rd in a 3 part series)