D had an arrangement with the State Department of Mental Hygiene (DMH) to provide home care services for adult patients. Though she did not advertise her services, she was well known to the DMH, which referred patients to her on a regular and continuing basis.
D received $125 per month per person for whom she provided home care services. These services included preparing meals and providing home care for the patients. She was not subject to state control as to the manner in which she provided the services, nor was she issued a license for providing the services. She did, however, receive a certificate from DMH showing that her house met certain standards for hearing, ventilation, room size, and so forth. A state social worker visited her home once or twice a month to bring her new patients and to check the facilities, including the menu and meal preparation.
D claimed that she did not provide the home care services with the intent to earn a profit, but rather viewed it as a charitable enterprise. However, she did rely upon the income she received in order to “get along.”
Under these circumstances, it was found that D’s net income from the provision of home care services constituted creditable net earnings from self-employment for social security purposes. She was not an employee of the state because her relationship with DMH did not bear the hallmarks of an employer/employee relationship, since she was not subject to control as to the manner or outcome of the services she provided. However, her services could not properly be characterized as merely charitable, as there was indeed a profit motive (she used her net income for herself in order to “get by”), her provision of services was regular and continuous, and her relationship with DMH amounted to “holding herself out” to the public as being in the business of providing home care.
See Social Security Ruling (SSR) 67-24.
This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.
