Common Mistakes Registries Make with 1099 Caregivers—And Best Practices You Can Use Today.

Is your caregiver registry ready to grow in 2025? Learn from common mistakes that registries make and utilize best practices that are compatible with 1099 caregivers. 

Here are a few:

• Properly classify caregivers you contract with.
• Maintain clear lines of communication and documentation.
• Stay updated on state and federal guidelines.

Now, let’s go over each one in more detail.

Properly classify caregivers you contract with. 

You’re probably familiar with the Final Independent Contractor Rule at this point, but are you regularly reviewing and auditing your caregivers against these rules? 

Follow this checklist to make sure: 

1. Opportunity for profit/loss
2. Investments by your company and the worker
3. Degree of permanence
4. Nature/degree of control
5. Integral nature of work
6. Skills/initiative required

It’s important to note that these factors are considered holistically rather than one factor determining classification. 

READ MORE: 1 Month Into the Independent Contractor Rule: A Guide For Caregiver Registries

Your registry management system can help to properly organize, secure, and manage worker information and documents. This can include: 

• payment disbursement
• collecting 1099s
• schedule maintenance

Maintain clear lines of communication and documentation.

As a registry, you’re probably aware of the strict regulations on how you can communicate with caregivers and families, and more. But, that doesn’t mean that you can’t provide a mechanism for those parties to stay in contact with each other.

That’s where your registry can differentiate from competitors while staying in regulations. 

Communicating with caregivers and families about your business model, how you match them together, and more is important for them to decide on if you’re the right fit for their needs. 

As a selling point to families, clients, and caregivers you contract with, be sure to share what options are available for them to:

• Negotiate pay rate
• Maintain and change their schedule
• Share day-to-day updates on how care is going

By properly maintaining your line in the sand with communication and documentation, you can make sure that your registry stays clean as a registry, while facilitating long-term relationships. 

Stay updated on federal and state guidelines.

We have great partners, like the attorneys at Polsinelli, who specialize in the caregiver registry space. Learn more about them here.

It’s important to regularly touch base with legal counsel to make sure that your registry meets current guidelines, but remain ready in the event that new legislation passes. On the cusp of a presidential election, things can shake up pretty quickly. 

California caregiver registries, for example, even after the Final Independent Contractor Rule passed, still have to use the A-B-C test to determine proper classification for their caregivers. 

READ MORE: Breaking Down the Different Methods of Home Care Delivery: Agencies, Registries, Virtual Marketplaces and Consumer-Directed Models

Keep your caregiver registry in line with regulations using these tips.

If regulations are becoming a higher priority for your organization, now’s the time to start re-evaluating your documentation and classification audit practices. 

Use this article as a starting point to have the conversation with your team. 

And if your registry management system isn’t supporting your compliance goals, schedule a demo with Ally to learn more about how we can help you increase your odds of passing an audit by 50%.