Every private care arrangement carries a worker label, and the label decides who keeps the paper. A worker listed as an agency employee, an independent contractor or a family-hired worker creates different records. Those records are what you will show if care costs come up in a claim. Read the label before you sign anything.

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Three arrangements, three paper trails

An agency-employed aide usually means the agency sends invoices, runs payroll, and carries the insurance and bonding. A directly hired aide usually means the family takes on the role of household employer, with pay records, timesheets and whatever forms apply to that role. A contractor arrangement can mean the aide invoices you directly, which shifts the bookkeeping but not the need for proof. Ask which one you are signing for.

What to check in the agreement

  • The exact word used for the aide: employee, contractor, or something else
  • Who carries workers compensation and liability insurance, and whether the certificate is attached
  • Who issues the invoice or pay record, and how often
  • Who signs the timesheet, and what happens when the aide and the family disagree on hours
  • Whether the price covers travel time, and whether that is written into the agreement
  • What proof of payment you will receive for each month of care

Why the label matters for the claim

The VA considers unreimbursed medical expenses when it works out a pension rate, and care paid for by the claimant can be counted as part of that group [1]. What counts, and how it is shown, depends on the specific bills. An invoice that says what was done, when, and who paid it is far easier to use than a verbal arrangement or a cash receipt with no name on it. Keep each month's paper together, in the same folder.

Questions to ask before signing

Ask for the written agreement before the first shift. Ask who the aide's employer is on paper. Ask what papers you will receive each month. Ask how the agency or the aide handles a dispute over hours. If the answers are vague, the paper is not ready to sign.

This is general information, not legal, tax or financial advice. For how the household employer role works, ask a tax preparer in your area. Aid and Attendance STL is not affiliated with the U.S. Department of Veterans Affairs. For how this desk checks its sources, see How We Write This Briefing.

Sources

  1. VA.gov, pension, unreimbursed medical expenses and how they are counted.