Financial Management Designed for Home Care Providers

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Home care agencies — whether private pay, Medicaid waiver, or 
IDOA-funded — face unique financial compliance requirements that 
demand specialized accounting knowledge. From caregiver payroll 
classification to IDOA and DHS cost report filing, the financial 
side of running a home care agency requires a CPA who knows 
this industry.

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Soriaga & Associates has been the accounting firm of choice for 
Illinois home care agencies for over 25 years. We understand the 
difference between personal care, homemaker services, and skilled 
nursing — and how each is reimbursed and reported differently.

 

WHAT WE HANDLE FOR HOME CARE AGENCIES

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• Monthly bookkeeping and financial statement preparation

• Caregiver payroll processing (W-2 employees and 1099 contractors)

• Payroll tax compliance and year-end filings

• IDOA, DHS, and CILA cost report preparation and filing

• Business and owner tax preparation and planning

• Cash flow management and financial planning

• Fractional CFO services for growing agencies

 

IDOA AND DHS COST REPORTS FOR ILLINOIS HOME CARE AGENCIES
 

Many Illinois home care agencies receive funding through the Illinois 
Department on Aging (IDOA) or the Department of Human Services (DHS). 
These programs require annual cost reports that document your actual 
service delivery costs and reconcile them against program 
reimbursements.

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We have extensive experience preparing IDOA and DHS cost reports for 
home care agencies throughout Illinois — accurate cost allocation, 
proper documentation, and on-time submission, every year.

 

FREQUENTLY ASKED QUESTIONS
 

Q: What financial records does a home care agency need to maintain?
A: You should maintain payroll records by employee and service type, 
service delivery logs by client, receipts for all operating expenses, 
bank statements and reconciliations, and separate records for each 
funding source — private pay, IDOA, DHS, and Medicaid waiver. We 
help you build systems that make recordkeeping manageable and 
audit-ready.

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Q: How are caregivers classified — W-2 or 1099?
A: This is one of the most common compliance issues we see. Most 
caregivers who work regular hours, follow your agency's protocols, 
and use your equipment must be classified as W-2 employees — not 
independent contractors. Misclassification can result in significant 
back taxes, penalties, and legal liability. We review your 
classification structure and help you get it right.

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Q: Do home care agencies need to file cost reports?
A: If your agency receives IDOA or DHS funding, yes — you are 
required to file annual cost reports with those agencies. Unlike 
Medicare cost reports, these are filed with Illinois state agencies 
and have their own formats and deadlines. We handle both.

Serving home care agencies in Lisle, Naperville, Westmont, Chicago, 
Aurora, Joliet, Downers Grove, and across the greater Chicago area.

 

Call 630-491-1268 for a free consultation with a home care 
accounting specialist.