If you or a loved one have long term care needs or a disability, it can be a complicated process to legally hire and employ caregivers. This process and related financial obligations can make it difficult for you and your loved ones to remain focused on your care.
This is where a financial management service provider comes in. The service provider handles all legal paperwork, time tracking, payroll, tax filings, and insurance concerns for you as you become an employer.
By inviting someone into your home to provide care, you are putting yourself at risk for financial abuse or fraud. According to a study by MetLife, an estimated $2.6 billion is lost annually as a result of elder financial abuse in the United States.
Financial management services help to prevent this type of elder abuse by handling all aspects of paying caregivers, eliminating your need to write checks or pay in cash. This includes receiving timesheets, withholding taxes, and issuing checks or direct deposits.
You remain in charge of your caregiver’s wages by approving timesheets and setting a budget for your care services. Your budget will not be exceeded and timesheets will not be processed without your approval, which prevents your caregiver from fraudulently submitting hours beyond those actually worked.
When paying caregivers, the service provider will issue you an invoice. By requiring only one payment to the service provider, it is easy for you to see any excess withdrawals or charges made to your account which could be signs of fraud.
Financial management service providers run background checks on all potential and hired caregivers to ensure your safety. These checks can be completed anytime upon your request. This allows you to make an informed hiring decision and to remain informed about safety concerns throughout employment.
According to a study by MetLife, 55% of elder financial abuse in the United States is committed by family members, caregivers, and friends. Financial management services provide an element of elder abuse prevention by running background checks on all caregivers, bringing to light any crimes the individual has been convicted of. This protects you not only from potential financial abuse, but physical abuse as well.
Staying on Budget
Financial management service providers work with you to determine a monthly care budget to ensure you receive the care you need while staying within your spending limits. You remain in control of your budget and care and can make changes at any time to accommodate changes in your health and needs.
If your budget is exceeded, the service provider will inform you and ask if you would like to increase your budget for care. This ensures that caregivers are not overstating their hours after your timesheet approval and that your budget is adjusted when necessary. Your budget will never be exceeded without your approval, allowing you to focus on your care without the worry of overspending.
Financial management services make it safe and easy for those with long term care needs or disabilities to legally hire and employ caregivers of their choosing.