Retroactively paying taxes for nanny

[Anonymous]

We hired our first nanny in early 2021 when we had a baby. We were desperate to find someone super cautious and who was willing to get vaccinated asap. She did not want to be on the books so we took her as such. We love her. I want to add her on the books though and pay taxes for her retroactively. She might agree. Is there a way to do that?

[Anonymous]

It will be costly to her and you...though absolutely the way it should be done.

[Anonymous]

Anonymous wrote:It will be costly to her and you...though absolutely the way it should be done.

Agree, but I still want to do it. Do you know what the process is?

[Anonymous]

You can expect about a $5hr raise for her moving forward if you want her to have the same take home pay.

As far as fixing previous years- the biggest thing to find out is if your nanny did not file taxes at all or did and just didn't report her income from your family.

There will be pretty major fines and back taxes on both ends. You will both likely get audited and it could open a HUGE issue for your nanny (and all her previous employers) if she has been working under the table for many years.

[Anonymous]

It is not that big a deal for 2021 because you can just re

[Anonymous]

Did you carry workers comp insurance? Not carrying it was a crime. If I were you, I'd start fresh this year

[Anonymous]

Anonymous wrote:Did you carry workers comp insurance? Not carrying it was a crime. If I were you, I'd start fresh this year

+1

Going back and saying "I've been doing this illegal thing but now I want to be good!" to the government seems crazy to me. If you want to start paying her on the books, start paying her on the books, but I wouldn't try to go backwards. What's done is done.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Did you carry workers comp insurance? Not carrying it was a crime. If I were you, I'd start fresh this year

+1

Going back and saying "I've been doing this illegal thing but now I want to be good!" to the government seems crazy to me. If you want to start paying her on the books, start paying her on the books, but I wouldn't try to go backwards. What's done is done.

+2

[Anonymous]

She might not want to be on the books because she can qualify for public assistance programs. Do you pay her in cash?

[Anonymous]

Anonymous wrote:We hired our first nanny in early 2021 when we had a baby. We were desperate to find someone super cautious and who was willing to get vaccinated asap. She did not want to be on the books so we took her as such. We love her. I want to add her on the books though and pay taxes for her retroactively. She might agree. Is there a way to do that?

You knew that it was illegal to hire under the table. There is no excuse for this. There will probably be a fine and, depending on where your work, you could lose your job and I hope you do.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We hired our first nanny in early 2021 when we had a baby. We were desperate to find someone super cautious and who was willing to get vaccinated asap. She did not want to be on the books so we took her as such. We love her. I want to add her on the books though and pay taxes for her retroactively. She might agree. Is there a way to do that?

You knew that it was illegal to hire under the table. There is no excuse for this. There will probably be a fine and, depending on where your work, you could lose your job and I hope you do.

Get a grip. OP is trying to do the right thing.

[Anonymous]

This would really stress me out as a nanny and I’d probably quit because of unknown consequences to the government finding out I worked illegally. I think you should just start over, it’s a crappy thing to do to someone after the fact. You had your chance to start it off right but didn’t.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We hired our first nanny in early 2021 when we had a baby. We were desperate to find someone super cautious and who was willing to get vaccinated asap. She did not want to be on the books so we took her as such. We love her. I want to add her on the books though and pay taxes for her retroactively. She might agree. Is there a way to do that?

You knew that it was illegal to hire under the table. There is no excuse for this. There will probably be a fine and, depending on where your work, you could lose your job and I hope you do.

Get a grip. OP is trying to do the right thing.

She should have done the right thing from the start. I would not be en consider hiring someone who wanted to be paid in cash under the table. Breaking the law in one thing tells me that you are dishonest and how could I trust the person to care for my child (ren) or not steal from my house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Did you carry workers comp insurance? Not carrying it was a crime. If I were you, I'd start fresh this year

+1

Going back and saying "I've been doing this illegal thing but now I want to be good!" to the government seems crazy to me. If you want to start paying her on the books, start paying her on the books, but I wouldn't try to go backwards. What's done is done.

This. Will she even agree to it?

[Anonymous]

I would tell her that you need to start paying her on the books, and let her go if she won't agree to it. I would not go back in time because it's pretty obvious you did it on purpose (kind of hard to plead ignorance to not paying employee taxes and workers comp).