For families

How to hire a private caregiver: cost, screening, taxes and a written agreement

By the CaregiverConnect team · Updated 2026-10-12 · Sources checked on the same date and listed at the end.

Hiring a caregiver directly rather than through an agency usually costs less per hour and gives you more say over who walks through the door. It also makes you the employer. This guide covers the decisions in the order you will meet them, with the public sources behind each number.

Private caregiver or agency?

	Private caregiver (hired directly)	Licensed agency
Who employs the caregiver	You (household employer)	The agency
Screening	You check references, identity and background	Agency does it; in California, agency aides must be on the state Home Care Aide Registry
Cost	The caregiver’s rate only	Caregiver pay plus the agency’s margin; CareScout’s 2025 survey puts the California statewide median for non-medical home care at $40 per hour
Backup if the caregiver is sick	You arrange it	Agency sends a substitute
Continuity	Same person every time	May rotate staff
Taxes and overtime	Your responsibility	Agency’s

Many families combine the two: a private caregiver for the regular schedule and an agency or respite programme for cover.

What private care costs

No agency tracks private rates, so use the public reference points. Employed home health and personal care aides earned a median of $16.50 per hour in most California metros and $16.97 in San Diego in May 2025 (BLS); IHSS pays providers $18.83 per hour in Imperial County and $20.40 in San Diego County in 2026; the California minimum wage is $16.90 and Arizona’s is $15.15. A private caregiver you hire directly will reasonably expect more than the agency aide median, because you are not paying an agency margin and because they carry their own risk. Expect premiums for overnights, weekends, dementia or personal care, and short shifts. On CaregiverConnect caregivers publish an hourly rate on their profile and you state your budget in your posting, so neither side wastes time.

Screening and background checks

Interview in person (or by video first), with the person who will receive care present for at least part of it.
Check two references by phone, ideally former clients’ families. Ask about reliability, how they handled a hard day, and why the arrangement ended.
Verify identity and any certifications. In California, search the CDSS Home Care Aide Registry; ask IHSS providers for their county enrolment; check CNA status with the Department of Public Health.
Run a background check through a licensed consumer-reporting agency with the caregiver’s written consent (the Fair Credit Reporting Act applies). CaregiverConnect does not run checks itself; caregivers may upload proof of one, which our team reviews before showing a Verified badge, and you should still verify independently.
Trial shifts. Two or three paid shifts before committing to a schedule.

You are the employer: taxes and overtime

Federal. A caregiver who works in your home under your direction is a household employee, not an independent contractor. Above the annual cash-wage threshold you withhold and pay Social Security and Medicare taxes and file Schedule H (IRS Topic 756). Paying "under the table" exposes you to back taxes and leaves the caregiver without workers’ compensation if injured in your home.
California. The Domestic Worker Bill of Rights gives personal attendants overtime at 1.5× after nine hours in a day or 45 hours in a week. Register with the Employment Development Department as a household employer once wages pass the state threshold, and check whether your homeowner’s policy covers a domestic employee or you need workers’ compensation.
Arizona. Minimum wage $15.15 (2026); federal overtime rules apply to directly employed caregivers who are not exempt companions. Arizona’s caregiver training rule covers assisted-living facilities, not private homes.
Payroll services for household employers exist; the fee is usually small compared with the risk of getting it wrong.

The one-page agreement

Write down: the duties (and what is excluded, such as medical procedures and heavy lifting without equipment), days and hours, hourly rate and pay day, overtime, mileage if the caregiver drives, sick days and holidays, notice period on both sides, house rules, emergency contacts and the care plan location. Both of you sign it, and you keep a weekly timesheet. Revisit it when the care needs change.

Safety nets

Keep valuables and financial documents secured, and set up online access to accounts so you can see activity.
Agree how the caregiver reports each shift (a text summary works).
Know your Adult Protective Services line: Imperial County (760) 337-7878; San Diego County (800) 339-4661; Arizona (877) 767-2385.
Use respite programmes (Area Agencies on Aging) so the arrangement does not depend on one person.

Sources

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