Does an agency employed health care aid get paid directly by patient ever or is this fraud?

Question by canyouhelp: Does an agency employed health care aid get paid directly by patient ever or is this fraud?
Agency in NJ claims that home aid gets paid by check directly by dementia patient while agency gets paid a fee of $ 5 per day to cover health aide’s insurance: ie workers comp, disability, etc..
Why wouldn’t agency be paid with one check for total and then agency pays aid? Insurance company claims it will not pay $ 100 per month as it looks like it’s an employment agency. Agency claims that aid is employee, but I suspect that agency would be billing insurance co as well as it will not make any money otherwise. Is this double billing?

Best answer:

Answer by mbrcatz
Well, that’s one way for the agency to NOT pay payroll taxes and insurance costs. Clearly, the agency is NOT considering the aid an employee, and that’s how they’r proving it.

Is it fraud? It’s probably TAX fraud. The agency is telling YOU they’re an employee, and the IRS that they are NOT. Look, they’re not holding back payroll taxes! They can’t be, since PAYROLL is done by the client! And I SERIOUSLY doubt they’re providing liability and workers comp for the “employee”, seeing as how the “employee” payroll isn’t on the BOOKS of the agency.

Add your own answer in the comments!
Find out about the Best Shopping Sites for Mom’s on the internet…

agency, Care, Directly, Employed, Ever, Fraud, Health, Paid, patient, This