Taxes, Timesheets, and Payroll: The Financial Side of Being a Paid Family Caregiver

The biggest hesitation families have about the self-directed care model is the fear of financial paperwork.

You want your sister, uncle, or spouse to be paid for their hard work, but you do not want to become a human resources manager. Calculating state and federal tax withholdings, issuing W-2s, and buying workers' compensation insurance sounds like a full-time job in itself.

The good news? You do not have to do any of it. That is the exact purpose of the Agency with Choice (AWC) model.

Understanding the "Employer of Record"

When you transition to self-directed care through an AWC program, you are the Managing Employer. You handle the care.

Your agency acts as the Legal Employer of Record. From the perspective of the IRS and the State of Arizona, the agency is the official employer.

How Nova Z Health Handles the Finances

At Nova Z Health Services, we utilize modern, seamless payroll technology to make the financial side of caregiving invisible to your family. Here is exactly what we handle on your behalf:

• Tax Withholdings: We automatically calculate and withhold all necessary federal income tax, state income tax, and FICA (Medicare and Social Security) from your caregiver's paycheck.

• Reliable Payroll: Your caregiver simply submits their digital timesheets. We process those hours and issue direct deposits on a reliable, consistent schedule.

• Medicaid Billing: We handle the complex backend process of coding and billing the Arizona Long Term Care System (ALTCS) through DDD for the services rendered. You never touch a state invoice.

• Liability and Protection: Every caregiver hired through our AWC program is fully covered by our workers' compensation and professional liability insurance policies.

• Year-End Taxes: Come tax season, Nova Z Health issues standard W-2 forms directly to your caregivers.

By taking the financial math and liability off your plate, we allow you to focus on the only thing that truly matters: the health, happiness, and well-being of your family.