The Cost of Hiring a Private Caregiver: What You Need to Know

The Cost of Hiring a Private Caregiver: What You Need to Know

Hiring a private caregiver allows families to select their own caregiver and set their own wages. Private care can be a more affordable alternative to using a home care agency. Some families prefer to hire privately because they can form a long-term, meaningful relationship with the caregiver. However, this option entails added risks, as the family or person receiving care will become an employer. This means that the person hiring the private caregiver will be responsible for adhering to California labor laws and creating an employment contract. The hiring person is also responsible for vetting the person who is hired by checking references, conducting interviews, and completing a background check.

PROS

  • Can be more affordable.
  • Stronger relationship with caregiver.
  • More flexible arrangements (short shifts, live-in).

CONS

  • There is no backup if the hired caregiver is unable to make their shift.
  • More time consuming and responsibility for caregiver with becoming an employer.

Considerations for Household Employers

  • Sign up with the Employment Development Department (EDD) and report wages paid if required (check EDD website for details).
  • Check the Internal Revenue Service’s site for federal tax law details for household employees.
  • Check home or renter’s insurance if coverage includes household employees.
  • Interview with potential hires.
  • Develop a work contract with expectations for the caregiver and make sure wages are within CA labor laws (including overtime).
  • Complete background checks and reference checks.

*An attorney who is familiar with employment law can assist with reviewing your plan and legal employment documents.

*Payroll & tax services are available, for a fee, for those who would like assistance managing these responsibilities.

Finding a Caregiver to Hire

It’s best to start with your own familiar network to see if there are any recommendations for caregivers. Consider family members, friends, neighbors, co-workers, church community, & social online communities. Remember what is important to them may not be the same for you. Lastly, there are home care registries that also list caregivers who are looking for employment. Be aware that background screening is still needed for individuals on these sites. Additionally, with these sites you may need to provide your personal information or pay service fees.

Questions to Consider When Reaching Out to Caregivers

  • Legally eligible to work in the country?
  • Do they have any credentials? Be sure to check the CA department that regulates their license type.
  • Previous experience? Especially with dementia care.
  • What knowledge or education have they pursued related to dementia care?
  • What type of physical care are you comfortable providing? Ex. Toileting, showering, dressing.
  • What hours are they available to provide care?
  • Are you able to drive? Do you have current car insurance? Have you had any car accidents or tickets in the past 5 years?

Finding the Right Fit

The goal is to find a successful match between the person you are caring for and their caregiver. It is important to take the time to think about what your expectations are for the caregiver you are hiring. Consider what specific duties you wish to be performed, both household and personal care. You can provide details on your person’s interests, personality, hobbies, favorite music/tv shows. To help decide on compatibility, ask the caregiver about their own personality and communication style. Share with them the physical needs and possible dementia behaviors that could be present to assess if they are the right match. You can have them meet each other to help you make your final decision.

Resources

Call us at 858.492.4400 to speak with one of our Dementia Care Coaches who are here to help San Diego County residents and/or those caring for someone living in San Diego County (Spanish speakers available). Also check out our free education classessocial activitiescaregiver support groups, & more.

RECOMMENDED: Medicaid and Medicare: Long-term Care Coverage for Dementia

Posted on November 24th, 2025

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