If you’re someone who helps another person with the basic activities of daily living, including bathing, eating, dressing, and using the bathroom, you are the very definition of a caregiver. Multiple job descriptions fall under the caregiver category, including long-term care nurses and in-home caregivers who provide home care to seniors, the latter of whom work for a private health care agency or are self-employed.
As a senior caregiver or someone looking to get into the industry, it’s important to understand the wage structure in your state for such an occupation. Here’s a guide explaining the different salaries involved, giving you a better idea of the money you can make in the industry.
In-Home Caregivers
Before delving into the mathematics of it all, a distinguishing should be made between the types of in-home caregivers that exist. There are independent caregivers, who are self-employed, and there are standard in-home caregivers, who are considered employees. As an independent caregiver, you will have to tackle certain expenses, namely taxes and insurance. While you get to dictate your hours, you lose financial flexibility. However, as a standard caregiver, you are considered an employee as you work for a private agency and are, essentially, on the payroll of the family you’re working for.
If you’re making more than $2,100 a month for your caregiving duties, then you have officially been deemed an employee and will take on accompanying responsibilities, receiving benefits such as paid sick time, health and dental insurance, tuition reimbursement as well as mileage reimbursement. Make less than that monthly figure, and you’re considered an independent caregiver.
On average, the base salary for an in-home caregiver is $27,014, while the per-hour wage is $11.60. If you live in Rhode Island, your pay is significantly better, at over $28 an hour, while the base salary is $65,893, 144% higher than the national average. The next closest wage is in Alaska, where the base salary is $40,424, with the hourly wage at $17.35. However, if you’re in Florida, you won’t be nearly as fortunate, with hourly wages as low as $8.10 and the base salary only at $20,525.
Breaking it down to specific cities, the highest-rated cities in terms of in-home caregiver pay include Chicago, Dallas, Phoenix, Los Angeles, Sacramento, and Long Beach. It should be noted that the pay is higher in some states due to higher living expenses.
When you’re filing taxes as an independent caregiver, you’ll need to fill out Form 1040 or Form 1040-SR. If you’re a household employee, you will have to fill Form W-2 if you made more than $2,300 in 2020 and will pretty much have to follow IRS guidelines just like an employee in any other profession. When you’re hired, you’ll get a Form W-4 as well as a state withholding form if you live in a state with income taxes.
Wages for Long-Term Care Nurses
As a long-term care worker, you deliver assistance to seniors in a long-term care facility rather than going to someone’s home, with set hours and procedures you have to follow. As a nurse, you make a higher salary than you would as an in-home caregiver because you’re working for larger corporations.
An average salary for a long-term care nurse is $29,425, while the average base hourly wage is $12.58, with similar benefits as in-home caregivers would get. The best salary you can make as a nurse is in Washington state, where the base salary is $38,948, 32% higher than the national average. On the contrary, the worst base salary is in Louisiana at just $21,076 a year. Like Louisiana, Mississippi and Alabama offer per-hour salaries of under $10 for long-term care nurses.
For long-term care nurses, experience plays a major role in how much you’ll get paid. Considering the level of training and expertise you have, you’ll be paid based on the level of care you can provide. If you have a high level of expertise and a strong skill set, you’ll be able to care for more seniors and, in turn, make more money. Seniors with more serious health risks require a higher level of care, which is where that experience/expertise will come in handy.
The difference between base salaries for long-term care nurses and in-home caregivers is wide-ranging. In states like California, the pay is around the same, with only a difference of $122. However, in Rhode Island, there’s a massive difference, with base yearly pay for nurses set at $37,977, a difference of just over $28,000.
Consider the Differences Before Involving Yourself in Caregiving
While the pay differences between in-home caregiving and long-term care work can be stark in some cases, other factors must be considered before delving into this important field. If you want more hours and control of when you work, then independent caregiving is for you, though you’ll need to have strong management of your finances. Long-term nurse work does normally give you a pay advantage but not nearly as much control. As a result, in-home caregiving is considered a good middle ground between the two professions.
Furthermore, you need to understand what duties you’re expected to perform so you can judge whether the pay reflects the responsibilities that come with the job. These duties include meal preparation, housework, medication management, among other things. Caregiving can be one of the most personally rewarding jobs around, but it comes with its challenges and, at times, will test your patience level. So, choose wisely when you’re deciding which aspect of caregiving you want to get involved in and consider the feelings of the families who have made the tough decisions to invest in caregiving.
Like any occupation, caregiving comes with its challenges. It also is in-demand, and if you have the passion for it, it’s a profession that can give you both emotional and financial fulfillment. Understand your wants and needs, assess the financial aspects, then make the best decision as you move into this all-encompassing industry.
