How to become an independent contractor caregiver for seniors

The aging population is increasing rapidly, with millions of people entering retirement age. As such, there is a strong need for compassionate, reliable and skilled senior caregivers. 

“Families want to ensure their loved ones are well taken care of by trusted professionals who can give quality care while allowing them to preserve their dignity and independence,” says Aaron Marcum, founder of Breakaway365, a company which helps homecare professionals grow their businesses.

Becoming an independent contractor caregiver or self employed caregiver for seniors is “a huge opportunity for those with a heart for service to step into a very fulfilling, high-demand career,” Marcum shares. Here, we’ll cover everything you need to know about entering this profession.

What is an independent contractor caregiver?

An independent contractor caregiver is a self-employed caregiver “who works without being tied to an agency, taking on private clients and setting their terms,” says Moti Gamburd, CEO of CARE Homecare, an in-home care agency serving seniors in California’s Los Angeles and Orange Counties. “Some focus on companionship and household assistance, while others provide more specialized care, like dementia support or post-hospital recovery.”

According to Marcum, there are several different types of self-employed senior caregivers, including:

• Companion caregivers: Offer social support, meal preparation and light housekeeping, but don’t give medical care.
• Personal care aides (PCAs): Help with personal hygiene and activities of daily living, including dressing and moving around.
• Certified nursing assistants (CNAs) and home health aides (HHA): Require certification and usually offer more comprehensive care; however, neither can provide medical care.
• Specialized caregivers: Work with seniors who need support for Alzheimer’s, dementia or other conditions that require special skills.

“Becoming a self-employed caregiver isn’t just a job. It’s a business opportunity that allows you to take control of your income, schedule and career path.”

— Aaron Marcum, founder, Breakaway365

Independent contractor vs. self-employed caregiver

Sometimes the terms independent contractor caregiver and self-employed caregiver are used interchangeably, but it’s important to note that not every self-employed caregiver works as an independent contractor.

Being self-employed means that you work for yourself, rather than an employer. If you are a self-employed independent contractor, it also means you:

• Do taxes as an independent contractor — usually by filing a 1099-NEC form. 
• Set your own hours.
• Determine your own pay rate.

Many senior caregivers who don’t work for a company or agency are self-employed, and may also be independent contractors; however, other caregivers are employed by the families who hire them for senior care. In this case, they are not self-employed, but are considered an employee of the family.

Tax and employment laws are complicated and can vary from one situation to another. If you are confused about which type of senior caregiver you are and how you should file your taxes, connect with an experienced accountant.

Benefits of being a self-employed independent caregiver

“Becoming a self-employed caregiver isn’t just a job,” says Marcum. “It’s a business opportunity that allows you to take control of your income, schedule and career path.”

Some of the benefits of being an independent contractor caregiver, according to Marcum, include:

• Flexibility. You choose your hours and clients. “That means more time for family, personal growth and well-being,” says Marcum.
• Higher earning potential. Because you don’t pay agency fees and set your own rates, you can earn more than if you worked for a home care agency.
• Purpose-driven work. “There are few careers that allow you to make such a profound impact on someone’s life,” Marcum says. “Caregiving is not just about the salary; it’s about the reason behind the work.”
• Entrepreneurial freedom. You have freedom in how to develop your business, which may include focusing on specific care, expanding your range of services or even employing others.

How to become an independent contractor caregiver

Becoming an independent contractor caregiver involves several important steps, Gamburd says. These include:

• Registering your business or applying for a business license, depending on your location.
• Obtaining liability insurance to protect yourself and your clients. 
• Meeting with an accountant to make sure you’re well-versed on taxes.
• Educating yourself about labor laws that impact caregivers.
• Understanding client privacy and HIPAA policies.
• Marketing your services in your community, among other caregivers and in online forums or caregiver websites such as Care.com.
• Developing a clear contract for clients that outlines payment terms and expectations.

Certifications needed for independent caregivers

While certifications aren’t strictly required for being a self employed caregiver, there are certain certifications that might make you more qualified and more appealing to potential clients.

According to Marcum, these include:

• CPR and first aid certification.
• CNA training.
• HHA certification.
• Specialized training (Alzheimer’s, dementia, Parkinson’s, etc.).

Other skills needed to be a self-employed caregiver                   

Certification and experience aren’t the only ingredients needed to become a successful self-employed caregiver. 

“In addition to the certifications, a successful caregiver needs compassion, patience, communication skills and problem-solving skills,” Marcum  says. “These cannot be learned but are crucial in this profession.”

“As you gain experience and build a client base, it is recommended to increase your rates.”

— Moti Gamburd, CEO, CARE Homecare

How much can you make as a self-employed caregiver?

How much you will make as an independent contractor caregiver can vary depending on your location, experience and the level of care provided, says Gamburd.

Nationally, the posted senior caregiver rate averages $20.59 per hour, according to recent Care.com data. Here are some examples of posted rates for senior caregivers based on location. You can enter your city and state into our Cost of Care calculator to review posted rates near you.

Current posted senior caregiver rates in top U.S. cities*

City, State	Hourly Senior Caregiver Rate
Atlanta, Georgia	$19.11/hr
Chicago, Illinois	$21.25/hr
Denver, Colorado	$23.57/hr
Los Angeles, California	$23.14/hr
New York, New York	$23.42/hr
Orlando, Florida	$18.78/hr
Philadelphia, Pennsylvania	$18.80/hr
Phoenix, Arizona	$21.72/hr
San Antonio, Texas	$16.76/hr
Seattle, Washington	$26.66/hr

Rates can go up for people who can provide more nuanced care, like Alzheimer’s or dementia support, Gamburd adds. “As you gain experience and build a client base, it is recommended to increase your rates,” he explains. “However, you have to be consistent in client acquisition to maintain a steady income.”

Potential downsides or challenges of being self-employed

While there are many perks and benefits to becoming a self-employed independent caregiver, there are some downsides to be aware of.

“The biggest challenge is the lack of [steady] clients,” says Marcum. “Since no one will be assigning you tasks like in an agency, you will have to go out of your way to create your client list through word of mouth, social media and caregiver directories to get consistent work.”

Additionally, there can be issues of income instability and lack of benefits. “In some cases, clients will pay differently depending on their availability,” Marcum shares. “Unlike traditional jobs, independent caregivers do not get employer’s benefits, meaning you have to pay for your own health insurance, retirement and taxes.”

Finally, caregiving can be physically and emotionally demanding and can lead to burnout. It’s important to prioritize your own self-care as a caregiver, and set appropriate boundaries and limits with your clients.  

Additional resources to become a self-employed caregiver 

If becoming a self-employed senior caregiver sounds appealing to you, but you don’t know where to start, there are resources out there to help you reach your goals. This includes certifications programs from places like:

• Senior care agencies.
• Senior care centers.
• Community colleges.
• The Red Cross
• Online courses. 

Marcum also recommends seeking peer support and job leads in your community and in places like online caregiver communities and Facebook groups.

Starting this journey begins with identifying what skills you need to develop, honing them and then beginning to create the job that you want, Marcum adds. 

“If you have passion, resilience and a work ethic that you can take with you, becoming a self-employed caregiver can be both enjoyable and lucrative,” he assures.