Signatures The personal care contract must be signed by both the caregiver and the caregiver. In some states, certification may be required for validity purposes. In the case of a review, a care contract should be entered into to protect dependents. In addition, family members or other informal caregivers who are paid for care are covered by the IRS rules for domestic workers — the “nanny tax.” Taxes must be withheld and paid and a W-2 must be issued. Even if it is a burden, it has an advantage, because it will also create a paper trail to verify that the money is exchanged from month to month and that legitimate services are provided. In the case of a long-term care applicant who pays a caregiver without this formal contract, Medicaid will most likely consider these payments as gifts and therefore a violation of the look back rule. A care contract legitimizes the reasons why payments are made to the individual, or otherwise indicated, provides evidence that the money is paid by the Medicaid applicant to receive care. If only one informal oral agreement has been reached, there is no evidence that the person receives money from the Medicaid applicant. In addition to the contractual agreement, tutors should maintain a daily protocol detailing the services provided, the hours worked and the payments received. This provides further evidence of the relationship between the Medicaid applicant (care recipient) and the caregiver if Medicaid needs it. When VA assigns an agent for the distribution of benefits – which is sometimes the case – the agent requires that the manager have created accounts based on how the fiduciary services require it. Maybe it`s against what we have here.

Don`t come back and blame us if VA Fiduciary Services wants another contract and another contract. The requirements of Fiduciary Services can also cause a problem with Medicaid. Compensation and payment rate The contract must include the tutor`s rate of pay which, as noted above, must not be more than the current rate in the area where one resides. The number of times the tutor is paid is also included. For example, is the tutor paid once a week, two weeks, once a month, or has the payment been made in a lump sum? When it comes to creating a formal personal care agreement and paying a caregiver, even a small mistake can lead to a denial of long-term care coverage. Below, you`ll find frequent mistakes that are made (and should be avoided): The introduction of a formal paper path has another advantage.