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Joanne Newton was said to have pointed a finger in the resident's face and screamed "don't talk to me like that" and "go on, hit me" when the service user was threatening to lash out physically.
The senior care assistant then told colleagues that the resident hit her on the cheek/jaw, which was untrue.
The Scottish Social Services Council (SSSC) branded Newton's behaviour "dishonest" and claimed her actions "resulted in emotional harm" to the resident.
Finding Ms Newton's fitness to practise impaired, the watchdog stated: "Social service workers must be truthful, honest and trustworthy.
"You verbally abused a resident and encouraged them to hit you. You then claimed that a resident assaulted you by punching you when this was not true.
"Your actions in doing so were dishonest. Dishonesty is particularly serious and damaging when associated with professional practice as it undermines public trust and confidence in the profession."
The incident occurred at The Orchard Care Home in Tullibody, Clackmannanshire, in December 2021.
In a written ruling published this month, the SSSC said Ms Newton's conduct fell "far below" the standards expected of social service workers.
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The watchdog said Ms Newton was "entitled to deny the allegations", but had shown "no insight into the potential consequences and impact of such conduct on a vulnerable service user".
The SSSC added: "There is no evidence of insight or regret from you and there is no evidence of remediation.
"Conduct of this nature raises serious questions about your values and there is a risk that your behaviour may be repeated in the future."
In conclusion, the watchdog said a removal order was the "most appropriate sanction" to maintain the "continuing trust and confidence in the social service profession and the SSSC as the regulator of the profession".
The removal order came into effect on Friday.