Ok, I have a claimant with Genworth. He hired an independent home health aide. He must classify the home health aide as a "Household Employee" under the Internal Revenue Code, because he controls the time and duties of the employee thus he must pay 7.65% for FICA.
Genworth is only reimbursing him for hourly wages x # of hours worked, not for my client's out-of-pocket FICA expenses to cover the taxes for the home health aide. However, if my client went through an agency, the home care agency would be paying the employee's FICA and Medicare taxes and it would be rolled into the fee my client would be paying and he would be reimbursed 100%.
Has anyone dealt with this before?
My client is a stickler for details and honesty and he will not roll the taxes into the hourly rate on the invoices submitted to Genworth.
Genworth is only reimbursing him for hourly wages x # of hours worked, not for my client's out-of-pocket FICA expenses to cover the taxes for the home health aide. However, if my client went through an agency, the home care agency would be paying the employee's FICA and Medicare taxes and it would be rolled into the fee my client would be paying and he would be reimbursed 100%.
Has anyone dealt with this before?
My client is a stickler for details and honesty and he will not roll the taxes into the hourly rate on the invoices submitted to Genworth.