Private Caregiver Pay: Don’t Let Simple Accounting Rules Keep You from Making the Best Hire Possible

Private caregiver pay is a little different than agency-based care services in that household employers of private caregivers are responsible for employer-based filing requirements. There’s no doubt the simplicity is nice. Instead of paying a flat fee or hourly service rate to a home health agency that handles the W-2, W-4, Sch H, and other employee and payroll forms, you have to calculate payroll taxes and other paycheck additions/deductions. Many households are unfamiliar with these types of payroll considerations, but you shouldn’t let this bookkeeping hassle keep you from hiring a caregiver who’s the right fit for your home.

Advanced Micro Solutions (AMS) offers the kind of software support you need to prepare, print, and submit these filing forms. Better yet, we do it with an intuitive, menu-driven interface that appeals to households, small businesses, and professional accountants alike. For just a couple hundred dollars, you can get comprehensive payroll and filing form support for private caregiver pay. Compare this to monthly subscription fees that quickly add up or the time-consuming task of learning, preparing, and submitting the various files on your own.

Why Private Caregivers are Still a Popular Choice

Indeed, be careful not to undervalue the considerable upside of hiring private caregivers. Agency-based caregivers are often stuck doing things “the way they were trained” or else “the way the agency told us to do it.” Standardization may be helpful for delivering cost-effective care services to large populations, but what about the individual with specialized care needs? No single way of providing personal care is right for everyone.

  • FAQ: Can I Count Private Caregiver Pay as a 1099-MISC Contractor? Probably not. Unless the caregiver themselves market their services as an independent contract company, complete with things like providing their own supplies and/or specialized service packages, then the IRS will more than likely see the relationship as a traditional household employer/employee.

More Form Filing Software

Did we say that household employers have to follow all the same employer-based filing forms as other businesses? That’s not quite the whole story. To help simplify the record keeping for household employees, the IRS has developed Schedule H to classify and document the information for this type of employment. AMS offers modular products and pricing. This means, whether you’re looking for standalone support for Sch H Form 1040 and state employment forms or whether you’re looking for a more sophisticated weekly payroll calculator, you can find a great solution at a great price with AMS.

We want households of every stripe to feel confident that they can take care of their private caregiver pay and household employment filings. (Our platform and modular products are also popular with independent accounting professionals, for that matter.) Not sure which products are right for your needs? Learn about each product’s features, download our free demo, or talk to our Sales and Information team at (800) 536-1099. You can buy AMS accounting software from our website at any time.


Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.