Costs to Operate

 

A Personal Care Agency is responsible to pay matching employer taxes, workman’s compensation policies, general liability policies, federal unemployment, state unemployment, $20,000 Surety Bond, $100,000 Surety Bond. Paid Time Off and Holiday Pay for Choice employees. We all know this is just a small part of our expenses.

Other operating expenses:

Payroll Processing. Usually $5.00 per employee per month and a monthly subscription as well. 

Ma Bell Phone services.

Office personnel to process employee backgrounds – provider enrollment in portal.

Processing paper forms with employee and clients.

Note: These are just the absolute basic costs to operate. MN DHS requires each employee complete a background check paid for by the agency. MN DHS requires a PCA Provider Number which can take from 30-60 days to obtain. The PCA Agency is responsible for paying for the employee during this waiting period without being able to bill for the hours they are working. This could be anywhere from $500-$4000 biweekly that comes off of the operating funds. This, in itself puts a major strain on an agency.