Hiring a caregiver independently can feel like a big responsibility, especially when it involves registering as an employer. But with Clara, we’re here to make the process as simple, flexible, and stress-free as possible. Let’s walk you through why hiring through Clara might be the perfect fit for your family.
Acting as an employer for a caregiver involves compliance with payroll and employment laws, and neglecting these responsibilities can leave you vulnerable to tax penalties and legal liabilities, especially if the caregiver gets hurt on the job.
The Risks of Non-Compliance
When you hire a caregiver, even informally, the law sees you as their employer. Here’s what’s at stake if you don’t meet compliance requirements.
Tax Penalties
Failing to pay employment taxes, such as Social Security and Medicare contributions, can lead to hefty penalties from the IRS.Legal Liability for Injuries
If a caregiver is injured on the job and you don’t have worker's comp insurance, you could be held personally liable for medical costs, lost wages, and even lawsuits.Audits and Fines
Paying a caregiver "under the table" does not exempt you from these obligations. In fact, it increases your risk of being audited and fined for back taxes and penalties.
How Clara Helps You Stay Protected
We simplify the complex process of hiring and managing a caregiver. Here’s how we keep you compliant:
Employment Registration
Clara registers you as an employer with the appropriate federal and state, eliminating the administrative burden for you.
Payroll Management
We calculate and handle all taxes, ensuring federal and state compliance, and provide you with a single form for your tax filing at the end of the year.
Worker's Comp Insurance
We partner with a specialized agency to provide affordable coverage, protecting you from liability.
Why Compliance is Worth It
It provides peace of mind, and you can be eligible for potential tax credits, which can help offset caregiving costs.
For a deeper dive into what payroll and compliance mean for hiring in-home caregivers, check out our detailed guide:
👉 Payroll & Compliance for Care in California