Self-Directed Care: What Financial Planners Need to Know
Description:
Due to legislative and regulatory changes, consumer-directed care has become one of the fastest-growing segments of the senior care industry. Primarily for cost reasons, many families are looking at employing their own caregiver(s), rather than utilizing an agency. This is especially true in high-hour, chronic cases where continuity of care is important – such as cases involving Alzheimer’s/Dementia.
Without expert guidance, families with domestic workers (i.e. nannies, senior caregivers, personal assistants, housekeepers, etc.) will likely make a number of expensive, time-consuming mistakes.
Employment tax filings are half of the compliance puzzle. The other half – and where much of the risk is – falls within the labor law and insurance aspects of household employment, which are quite different from those in the commercial employment world. Tom Breedlove will share information that ACP members need to know in order to advise clients on cost implications and mitigating risk.
Understanding key changes driving consumer-directed care
- Overtime exemptions: The Federal Exemption for live-in employees, the Companion Care Exemption for first-party employers, and the Federal Sleep Time Exemption for 24-hour shifts
- Domestic Worker Bill of Rights legislation and its impact on wage disputes and worker-driven compliance
- Acceptance of consumer-directed care among LTC insurance, Medicaid/MCOs, Medicare Advantage and other 3rd-party payers
- Cost savings in high-hour cases that require continuity of care due to cognitive impairment (i.e. Alzheimer’s disease/Dementia)
Planning for implications – Avoiding Tax and Legal Risk
- The “Nanny Tax” Obligations (IRS Publication 926)
- Labor Law Obligations (Fair Labor Standards Act & State Law)
- Wage notices
- Insurance
- Workers Comp
- Disability
- Health
- Overtime
- Paid Time Off
- Mileage Reimbursement
- Termination
- DOL guidance, interpretation and enforcement of worker classification (employee vs. independent contractor)
- New IRS enforcement initiatives around employment tax collections and its anticipated impact on the household employment segment
- Employee Benefits & Protections
Helping client’s save money and manage oversight
- Dependent Care Tax Breaks
- Non-Taxable Compensation
- Electronic Claims Processing/Reimbursement
- Worker background checks, oversight and quality control
- EVV and ADL tracking
- Tax strategies for dependent and long-term care situations
- Long Term Care Insurance/ VA Benefits options
About the Presenter:
Tom Breedlove
Sr. Director
Care.com HomePay Provided by Breedlove
Tom is Senior Director at Breedlove & Associates – now known as Care.com HomePay – the nation's leading household employment specialist. Co-author of The Household Employer’s Financial, Legal & HR Guide, Tom has led the firm’s education and outreach efforts on this complex topic. His work has helped HomePay become the featured expert on dozens of TV and radio shows as well as countless business, consumer and trade publications.
*This webinar earns 1 CFP CE Credit - Risk Management and Insurance Planning and 1 NAPFA CE Credit - Insurance and Risk Management