How Much Do Private Caregivers Get Paid?

October 17, 2023

When families hire caregivers to support their aging family members, they’re often curious about the amount of money these professionals will be paid. Caregivers are a valuable asset in the lives of older adults, and they deserve to be compensated fairly for their work. In addition to the many benefits of being a caregiver, including flexible scheduling, meaningful work and making a difference in someone’s life, family caregivers also receive traditional business benefits such as health, dental and life insurance payments.

Caregiver salaries are determined by the type of services provided, the client’s level of care needs and the geographic location. For example, the cost of care in metropolitan hubs is typically higher than in rural areas. In addition, some caregiving positions require specialized expertise, such as dementia coaching or Alzheimer’s disease support. As such, these specialized caregiving positions tend to pay higher than generalist caregiver roles.

Some independent caregivers are not hired by agencies and are considered household employees, meaning the family takes on employer responsibilities including payroll, taxes, and deductions. Often, these independent caregivers are unable to take time off without disrupting their clients’ schedules and care plans. In addition, the process of managing employee payroll and withholdings can be complex and time-consuming. Fortunately, third-party providers are available that manage these tasks on behalf of the family and educate them in regards to when caregiver expenses are tax-deductible.

When a family hires a private caregiver, they’re usually paying them an hourly rate plus any reimbursements for supplies or mileage. While these costs are relatively reasonable, it’s important to note that a professional caregiver can work much more hours than a family-hired caregiver. This additional time can make a significant difference in the quality of care received by an aging loved one.

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