Caregiving posts ask the same question over and over: the agency offers $18–$25/hour on W-2, while a family offers $28–$35 on 1099. Which is better?
Start with yearly cash. A $45,000 W-2 with $6,000 of employer health value and a small match can beat a $28/hour 1099 once you remove unpaid days and self-employment tax. Private cases also shift liability, scheduling risk, and downtime between clients onto you.
Open the calculator with these numbers
Caregiver-specific tips
- Ask whether overtime, holiday pay, and travel time are W-2 wages or unpaid.
- If you are 1099, track mileage, PPE, and continuing-education costs as expenses.
- Live-in and overnight roles change hours — billable time is what matters, not clock hours in the house.
FAQ
Do caregivers usually get W-2 or 1099?
Agency work is often W-2. Private clients sometimes pay 1099. The IRS looks at control and independence, not just the form the client prefers.
What should a 1099 caregiver charge to match agency pay?
Add the value of health insurance, paid sick days, and payroll taxes the agency covers, then use the calculator for your state.
Are mileage and supplies deductible on 1099?
Often yes as business expenses if you are truly self-employed and keep records. Enter an annual expense estimate in the calculator.