The Risks of ‘Under the Table’ Caregivers: Why Bonded & Insured Matters

When the time comes to find in-home elderly care for a parent or loved one, the emotions can be overwhelming. You want them to be safe, happy, and comfortable in their own home. You want a caregiver who treats them with the same love and respect that you do.

In this search, it is common for families to face a difficult crossroads. On one side, there are professional home care agencies like Cerna Homecare. On the other, there is the “private market” like hiring a neighbor, a friend of a friend, or someone found on a classifieds website who works “under the table.”

Often, the independent route looks appealing because of the lower hourly rate. We understand that budget is a very real factor for many families. However, there is an old saying that rings especially true in the world of senior care: Price is what you pay. Value is what you get. And when it comes to the safety and security of your loved one, the “hidden costs” of an under-the-table caregiver can be far more expensive, financially and emotionally, than you might think.

At Cerna Homecare, we believe that education is a vital part of quality care. We want you to make the best decision for your family, fully armed with the facts. Let’s explore why “bonded and insured” is a real safety net.

The Myth of the “Simple” Private Hire

Hiring a private caregiver often starts simple. You might think, “I just need someone to help Mom with meal prep and light housekeeping. Why would I need to go through an agency?”

It seems straight forward until you realize that by hiring an individual directly, you are not just a son or daughter anymore; you are now an employer. The moment you pay someone more than a certain threshold to work in your home, the IRS views you as a household employer.

This means you are responsible for:

• Withholding Social Security and Medicare taxes.
• Paying federal unemployment tax.
• Filing the appropriate tax forms every year.

If you pay a caregiver “under the table” to avoid this, you are technically breaking the law. If that caregiver ever files for unemployment benefits or reports their income later, you could face an audit, steep fines, and back taxes. When you work with a professional agency, we handle all the payroll, taxes, and administrative burdens. You just get the invoice, and we handle the rest.

The Liability Nightmare: What If They Get Hurt?

This is perhaps the single biggest risk that families overlook. Caregiving is physical work. It involves lifting, transferring, and navigating around furniture.

Imagine this scenario: You hire a private caregiver to help your father out of bed. One morning, the caregiver slips on a rug or strains their back while lifting him.

If you hired this person privately, you are liable. Most standard homeowner’s insurance policies do not cover employees working in the home. The caregiver can sue you for medical bills, lost wages, and disability. We have seen families forced into financial ruin or lengthy legal battles because of a single accident in the home.

This is why Workers’ Compensation is non-negotiable. At Cerna Homecare, all our caregivers are W-2 employees, fully covered by our Workers’ Compensation insurance. If one of our staff members gets injured in your home, their medical care and lost wages are covered by our policy, not your savings account.

The Definition of “Bonded and Insured”

You often see the phrase “Bonded & Insured” on agency websites, but what does it actually mean for your peace of mind?

• Insured: As mentioned above, this covers liability. If a caregiver accidentally breaks a valuable heirloom or causes damage to your home, a professional agency has general liability insurance to cover the cost of repairs or replacement. If a private caregiver breaks your expensive TV, you are likely paying for it yourself.
• Bonded: A surety bond is essentially a protection against theft. While we like to believe the best in people, the reality is that inviting a stranger into a home full of valuables and sensitive financial information carries risk. If a private caregiver steals jewelry or cash, your recourse is limited to filing a police report and hoping for the best. If an agency caregiver (who is bonded) commits theft, the bonding company provides compensation for the stolen property.

The Vetting Process

When you interview a private caregiver, you rely heavily on your gut instinct. They might seem kind, warm, and experienced. But how much do you really know about their history?

A private individual might provide a background check from a cheap online website, but those checks are often incomplete and outdated.

A reputable senior homecare provider takes vetting to a much deeper level. At Cerna Homecare, our screening process is rigorous and uncompromising. 

We do this because we know that quality in-home care requires trust. You need to sleep soundly at night knowing the person in your parent’s home is trustworthy, experienced, and licensed.

The “What If” Factor: Reliability and Backup

Life happens. Caregivers get the flu, their cars break down, or they have family emergencies.

If you rely on a single private caregiver, you are the backup plan. If they call in sick at 7:00 AM, you are the one who has to call out of work to take care of Mom. The stress of managing a caregiver’s schedule can quickly become a full-time job in itself.

With an agency, you have a team behind you. If your regular caregiver is sick, we have a roster of qualified, trusted staff ready to step in. We ensure continuity of care so that your life and your loved one’s routine is not disrupted.

Supervision and Specialized Support

Finally, there is the matter of expertise. There is no one looking over a private caregiver’s shoulder to ensure they are following best practices or noticing subtle changes in your loved one’s health.

Cerna Homecare provides Care Management. Our Case Managers oversee the care plan, visit the home regularly, and adjust the care as your loved one’s needs evolve. Whether it’s managing mobility issues or providing specialized cognitive stimulation for dementia, our caregivers are supported by a professional care team. We don’t just “watch” your loved ones; we actively work to improve their quality of life.

The Value of Peace of Mind

We know that every family wants to save money where they can. But when it involves the vulnerability of an aging parent, the risks of “under the table” care are simply too high. The potential costs of a lawsuit, a theft, or an IRS fine far outweigh the hourly savings.

Choosing a bonded, insured, and licensed agency is choosing senior care that is built on a foundation of safety, legality, and true professionalism. Your loved ones deserve the best. They deserve care that is safe, reliable, and accountable. And you deserve the peace of mind that comes with knowing your family is in great hands.

Need help navigating your home care options? Cerna Homecare is here to answer your questions.. Contact us today to discuss a personalized care plan that keeps your loved ones safe and happy at home!