A reputable agency will handle all the logistics, taxes, insurance, and assume all liability should anything happen.
Most, if not all, LTC policies require a licensed agency, which will also handle all the paperwork and filing.
I get asked all the time why someone shouldn’t just hire an individual themselves and, while that can work just fine if you know someone trustworthy, it almost always ends in disaster. They are notorious for calling off at the last minute, having car issues, and letting their personal drama affect their client, so a good agency will have a team of caregivers that are oriented to the client so there is always a replacement standing by. Caregivers are a tough demographic to manage and a good agency will be infinitely more qualified to handle this.
We interview thousands of applicants a year and 10% are employable and 1% go on to become good employees. I guarantee a good agency is better at selecting a caregiver than you are.
If you insist on hiring privately make sure you W2 them. In a private setting a caregiver does not meet the requirements for 1099.
Now, if you and your loved one live way off the beaten path then you are out of luck. No agencies or caregiver pool to draw from. Most likely it’s time to move.