RAL Academy

  • Home
  • Courses
    • RAL 101
    • RAL Operations
    • RAL Business
  • About
    • The Opportunity
    • The RAL Formula
    • FAQ’s
  • Success Stories
  • Events
  • Members
    • Initial Instructions
    • FAQ’s
  • Contact Us
  • Log In

Lesson 9: Protect Yourself By Clearly Knowing the Difference Between Employees and Independent Contractors

July 19, 2017 by Webmaster CEA 38 Comments


← Previous LessonNext Lesson →

Filed Under: Uncategorized

Comments

  1. Rashiek Divers says

    August 27, 2018 at 2:40 am

    I would like to get help with setting up the entities.

    Log in to Reply
    • Gene Testing says

      August 27, 2018 at 3:12 pm

      Rashiek,
      Fantastic, go ahead and contact Anderson Advisors.

      Toby Mathias
      Anderson advisors
      2062401793
      Mathias@andersonadvisors.com

      They’re fantastic, tell them you’re a student of ours.
      Gene

      Log in to Reply
  2. Jeff Young says

    September 9, 2018 at 12:51 am

    I have two comments: 1) lesson 9 is a re-hash of lesson 8 – very little new information; 2) you did not provide the contact for ADP. in #8 and #9 you said you would give the contact info but I don’t see it in the transcript, on the worksheet, nor on this web page.

    Log in to Reply
    • Gene Testing says

      September 9, 2018 at 2:59 pm

      ADP Payroll.
      Cody 602-541-8141
      Let him know you’re with Gene Guarino RALAcademy

      Log in to Reply
    • Jan Picar says

      February 18, 2021 at 11:24 pm

      Hi Gene. Just a follow up feedback on Jeff Young’s previous comment dated in September of 2018, not sure if this was done on purpose but lessons 8 and 9 have the same exact information. This could be time saved. Thank you.

      Log in to Reply
      • Isabelle Guarino says

        February 19, 2021 at 2:07 pm

        Most of the questions are answering later throughout the course 🙂

        Log in to Reply
  3. Robert Cook says

    November 26, 2018 at 10:07 pm

    In your houses, for your caregivers, how do you handle:
    Vacation-accrual
    Sick-accrual
    Holiday

    Log in to Reply
    • Gene Testing says

      November 27, 2018 at 3:50 am

      Robert,
      In Arizona there is a formula that we are required to use, bottom line, they usually get about 24 hours of sick time per year. Each state will be different and the state regulations will guide you on this one. Thanks,
      Gene

      Log in to Reply
  4. John Brecount says

    February 18, 2019 at 5:46 pm

    do you pay your employees benefits such as medical?

    Log in to Reply
    • Gene Testing says

      February 19, 2019 at 12:21 am

      We do not currently.
      Gene

      Log in to Reply
  5. Stephen WARD says

    March 27, 2019 at 4:37 pm

    Hello, as the care givers are considered as employee, by law, are we only obliged to deduct taxes from them but not to give benefits?
    Thanks

    Log in to Reply
    • Gene Testing says

      March 28, 2019 at 1:30 am

      Stephen,
      Currently if you have 50 employees or more you have to provide benefits. But since you won’t have that many, you don’t have to provide benefits. You can give discounts on dental, eye, prescriptions, etc. But it’s not required for you to do it.
      Gene

      Log in to Reply
  6. James Jones says

    August 9, 2019 at 12:52 am

    I know you mentioned one option being that you can hire live-in caregivers. I’m assuming these people will not be paid as if they are working 24 hours. Do you generally offer these people salaries?

    Log in to Reply
    • Isabelle Guarino says

      August 9, 2019 at 4:14 pm

      James, Correct they would be typically getting a salary that includes room and board, since they’ll be eating the same food as the residents and living for “free” in the home. The only reason doing live-in makes sense is when you have additional bedroom space, for example you have an 11 bedroom home with 11 baths and you are only licensed for 10… then it would make sense to have a live-in. Otherwise, don’t waste that space, do shift work, it’s much easier to manage and you don’t have to deal with any additional drama and you can make more money on the per bedroom when they are filled with residents.
      Isabelle

      Log in to Reply
      • Nicole He says

        October 24, 2019 at 2:50 pm

        If a live-in caregiver has a 8 hour uninterrupted resting time, so basically she can not be put on a night shift. It diminishes the benefit of having a caregiver live in the home. Correct?

        Log in to Reply
        • Isabelle Guarino says

          October 24, 2019 at 3:05 pm

          Xiaofeng,
          Unless you have a house full to capacity and an additional room with living quarters in the physical home, there is no need for a live-in caregiver. It is much better to have shift work. If your state requires that the caregiver must have 8 hour resting time, then you’ll need to either 1. hire a couple who are both caregivers and they both live in, one takes day shift and one takes night shift. 2. hire someone to come over at night to fill that shift while your live-in sleeps. Best advice….shift work, don’t do live-in unless you absolutely have to.
          Isabelle

          Log in to Reply
  7. Tony Chenhansa says

    October 24, 2019 at 4:40 am

    If an employee is willing to work overtime let’s say a 12 hr shift can they have the option or choose to work only 8 hrs sometimes whenever they want? Or is the employee be required to work 12 hrs if that’s what is written in the job description?

    Log in to Reply
    • Isabelle Guarino says

      October 24, 2019 at 3:02 pm

      Tony,
      You can set your shifts however you like.
      Some of our students prefer the 8 hour shifts, some prefer the 12 hour model.
      We do 12 hour shifts so there’s only one shift change out throughout the day and less error for no-shows.
      Isabelle

      Log in to Reply
  8. Jerri Jenkins says

    January 7, 2020 at 8:27 pm

    Hi,

    Great information! Do you have resources for accountants, maintenance and so forth?

    Thanks,
    Jerri

    Log in to Reply
    • Isabelle Guarino says

      January 8, 2020 at 4:59 pm

      Jerri,
      We do have a huge list of resources available for purchase after completing your course.
      Be sure to schedule a discovery call to go over those options after you graduate.
      Isabelle

      Log in to Reply
  9. Michael Balducci says

    February 26, 2020 at 3:22 pm

    Hi, seems like a live in situation would be a potentially good option if you have a second floor bedroom in a house with no elevator, an unattached garage which has perhaps a bonus apartment above, or a basement bedroom (which would need to have a means of egress from the basement, like a bilco door to be legal living quarters) What do you think?
    Michael

    Log in to Reply
    • Isabelle Guarino says

      February 26, 2020 at 5:17 pm

      Michael,
      That’s pretty much the ONLY way it would make sense. We suggest ONLY if you have an extra bedroom or upstairs or basement living quarters that is unusable for a resident then it could be a good fit for a live-in caregiver if needed. It needs to be livable space which means two egress options, so the door and a window.
      Isabelle

      Log in to Reply
  10. Evan Stockdale says

    March 11, 2020 at 7:28 am

    Do the independent contractor wages need to match up with hourly and overtime wages outlined by the state/federal government? For example, say the manager logged 80 hours in a week, but they were only paid for amount equal to 60 hours according to state min wage and OT guidelines.

    Log in to Reply
    • Isabelle Guarino says

      March 11, 2020 at 4:41 pm

      Evan,
      I would not pay your manager/administrator hourly, considering they are responsible for the home 24/7… that would not be a smart idea.
      But I’m pretty sure there is no overtime etc for IC workers, they are assigned a job and can come and go as they please, as long as the work is completed, it doesn’t matter how many hours it took or didn’t take them. Does that make sense?
      Isabelle

      Log in to Reply
  11. Paul Galloway says

    March 27, 2020 at 5:43 pm

    Hi, great course! You mentioned that you have 2 caregivers during day, 1 at night and your shifts are 12 hours long. Simple math would indicate that you are paying for three 12 hour shifts in a 24 hour period, 7 days per week. Is that correct or is there some way to cover busy times with your two day shifts and not have two full 12 hour day shifts? For example free time during non-busy periods during day. Thank you.

    Log in to Reply
    • Isabelle Guarino says

      March 28, 2020 at 2:10 pm

      Paul, Many people use 8 hour shifts instead! You can make it work however you like!
      Isabelle

      Log in to Reply
  12. Genna A Golden says

    March 29, 2020 at 12:03 am

    what happens when you have the 12 hour shift running smoothly with 2 people in the day and one at night, and one person goes on vacation or gets sick. If you have only one home how do you fill a spot temporarily?

    Log in to Reply
    • Isabelle Guarino says

      March 29, 2020 at 7:30 pm

      Genna,
      You will never only have 3 staff members, in this specific case scenario you would have a rolodex of 10+ caregivers who are rotating shifts, filling weekends or call outs, etc. Hypothetically, if all 10 could not cover, your administrator/manager is in charge of covering the shift. They are licensed and allowed to do that.
      Isabelle

      Log in to Reply
  13. Kathy Kuhrt says

    March 29, 2020 at 11:09 pm

    I am assuming that what you mean about the value of “having a free place to live and free food” when you have a live in caregiver that the value of that is taken into account when you set their wages. So would you pay them their wage + time 1/2 when applicable and then have them pay you ‘’rent”? Or do you handle it by reducing how much you pay them?

    Log in to Reply
    • Isabelle Guarino says

      March 30, 2020 at 3:59 pm

      Katie,
      It would be a salary “package” that includes rent/food, etc.
      No time 1/2, it’s a salaried position if it’s a live-in caregiver.
      Isabelle

      Log in to Reply
  14. Greg Williams says

    June 12, 2020 at 6:36 pm

    I STARTED RUNNING SOME OF THE NUMBERS IN MY HEAD AND WHEN YOU CONSIDER HAVING 8 RESIDENTS, 24H OUR CARE 365 DAYS PER YEAR, FOOD TAXES, HOUSE PAYMENTS, MAINTENANCE, UTILITIES, FOOD, ENTERTAINMENT, ETC. IT DOESN’T LOOK LIKE THERE IS ANYTHING LEFT FOR PROFIT. I’D LIKE TO SEE THE BOOKS ON BOTH A 8 AND A 10 RESIDENT HOME.

    Log in to Reply
    • Isabelle Guarino says

      June 14, 2020 at 11:18 pm

      Greg, We are happy to go over the numbers with you.
      If it didn’t make sense, we wouldn’t be doing it.
      Simple math…. 10 residents x $4k per month = $40k income, expenses shouldn’t be more than $25k per month, you can easily net $10k a month..
      Isabelle

      Log in to Reply
  15. Elyse Bailey says

    January 4, 2021 at 8:23 pm

    When you hire someone and of course you, at first, do not know if they are a good employee or not can their contract state that they are hired on a trial basis for the first, blank, amount of time and then you have a chance to know if they are who you want to keep?

    Log in to Reply
    • Isabelle Guarino says

      January 5, 2021 at 3:54 pm

      Elyse,
      It’s your business, so you can do whatever you want. But yes, you can put a probationary period of training time in their contract. Keep in mind, it’s your business, you can fire people whenever you need/want as well. It’s not like you’re stuck with them.
      Isabelle

      Log in to Reply
  16. Elyse Bailey says

    January 4, 2021 at 8:46 pm

    If you hire a chef are they employee since they have to be there at a certain time?

    Also you mention all the time 3 caregivers, 2 in day one at night. When do these people have a day off and who covers that?

    Log in to Reply
    • Isabelle Guarino says

      January 5, 2021 at 4:01 pm

      Elyse,
      The chef would be an employee if you’re going to structure specific times for them to arrive and depart, correct.
      The caregivers are not a specific number, instead think ratios, it should be 5 residents to 1 caregiver ratio, so if you have ten residents that’s only 2 caregivers most of the day, you can go down to one at night.
      The caregivers usually work 8 or 12 hours shifts, depending on how you structure it, remember this is YOUR business, you can do what you want. If they work 8 hour shifts they would be working for you usually 3-4 days a week and if they work 12 then usually 3 days a week. Most caregivers work at 2 or 3 homes full time. So if you have multiple homes this is a great way to share resources, but until you have more than one home, you can share staff with other home owners nearby.

      If you have a home licensed for 10 residents, you will more than likely have 10-15 caregivers you rotate through quite often and then another list of 5-10 who you can use when you’ve exhausted your list, or you’re having a holiday party for the staff or you need someone to cover a random shift, etc.

      The manager/administrator would be in charge if someone calls out sick or needs a day off to help cover that persons shift with another caregiver and if no one can do it, then they cover the shift themselves.
      Isabelle

      Log in to Reply
  17. James Jones says

    January 29, 2021 at 12:08 am

    Hello,

    Do you typically have physicians and nurses come into your home to do checkups, blood draws, etc. on your residents? If so, do you pay the nurses and physicians to come in or is it covered by the resident’s insurance?

    Log in to Reply
    • Isabelle Guarino says

      January 29, 2021 at 3:09 pm

      James,
      The home has a doctor who will come to the facility to take care of needs of residents and do check-ups once a month or as needed. When a new resident comes we ask if they want to change their primary doctor to this home-visiting doctor and if they want to then, yes, their insurance will cover or the doctor will charge a small fee and the resident would be billed for that. If they don’t want to use that doctor, their family is in charge of picking them up and taking them to the doctor of their choice.
      Isabelle

      Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Progress

Lessons

L1 - RAL Operations Overview
L2 - Policies & Procedures
L3 - Business Systems Equal Sucess
L4 - Finding and Assessing Potential Residents
L5 - Meals, Food, & Shopping
L6 - Activities for Residents
L7 - Job Descriptions
L8 - Your Team
L9 - Employees vs Independent Contractors
L10 - RAL Operations Course Review
Return to RAL Operations

My Achievements

You must be logged in to view earned achievements
  • Home
  • About
  • Success Stories
  • Events
  • Members
    • Initial Instructions
    • FAQ’s
  • Contact Us
  • Log In
  • Courses
    • RAL Operations
    • RAL Business

CONTACT

Email: Support@RALAcademy.com
Telephone: (480) 704-3065
Mailing Address:
Residential Assisted Living Academy
315 W. Elliot Rd Suite
107-605 Tempe, AZ 85284

© 2021 Residential Assisted Living Academy. All rights reserved.

This site is powered by Client Engagement AcademyThis site is powered by Client Engagement Academy