Retroactively paying taxes for nanny

[Anonymous]

Anonymous wrote: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).

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OP is in a precarious situation. She did not pay taxes or have workman's comp insurance and the nanny can report her and file a complaint against her. It makes no difference whether the nanny said she didn't want taxes taken out because this is not a choice for OP as both Federal and state laws are very clear that the employer must take taxes for household employees as they cannot be 1099 employees. She needs to see a tax person and get it straightened out and either pay back taxes, get workman's comp insurance. If this nanny doesn't agree then she gets a new nanny but she still gets legal with present nanny. Otherwise, the sword of Damocles is always hanging over her head.

[Anonymous]

OP here

Thanks all. We were so desperate to get her during that stage of the pandemic that we did not prioritize the on the books piece though we told her we would prefer it.

For those who asked, we did not pay workers comp

We only need to work with her for a few more months. Our child is going to daycare in the fall.

We would love to do on the books going forward and she has tentatively agreed but I am wondering if there is a way to do it retroactively too. She’s not too keen on that but I’d like to see what our options are.

She’s also not a career nanny and wants to get a non-nanny job.

Should we just talk to an accountant? What are our options?

Thanks.

[Anonymous]

Anonymous wrote:OP here

Thanks all. We were so desperate to get her during that stage of the pandemic that we did not prioritize the on the books piece though we told her we would prefer it.

For those who asked, we did not pay workers comp

We only need to work with her for a few more months. Our child is going to daycare in the fall.

We would love to do on the books going forward and she has tentatively agreed but I am wondering if there is a way to do it retroactively too. She’s not too keen on that but I’d like to see what our options are.

She’s also not a career nanny and wants to get a non-nanny job.

Should we just talk to an accountant? What are our options?

Thanks.

Why are you trying to go retroactive with the taxes? It seems like it would only be a benefit to you. Are you trying to get clearance?

[Anonymous]

Unless you somehow need it for clearance or something I would not even attempt to do the back taxes. Pay legally going forward and be mindful of this issue when you hire future employees.

[Anonymous]

OP: I don’t need clearance but wonder if it can come back to haunt us and what the consequences would be then.

[Anonymous]

Anonymous wrote:OP: I don’t need clearance but wonder if it can come back to haunt us and what the consequences would be then.

Zoe Baird and Kimba Wood--look them up on Google.

[Anonymous]

Opening up the back tax thing will be a MAJOR life changing can of worms for you, your nanny, and anyone she has previously worked for.

[Anonymous]

OP is probably regretting she can’t get money back on her taxes since she was paying the babysitter under the table. Next time pay on the books

[Anonymous]

Also- are you sure she is legal to work in the US?

Did you run a SSN based background check.?

[Anonymous]

Anonymous wrote:Also- are you sure she is legal to work in the US?

Did you run a SSN based background check.?

Presumably, this is a rhetorical question, as it is obvious that she chose the cheapest nanny. Legal nannies want to be paid legally as it is to their benefit both short- and long-term.