Paying for Childcare as Federal Employee

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We pay our cleaners with a check. I have no idea whether they report the income but I don't see it as my problem any more so than when I hire people for repairs or other work on the house.

Wrong. A house cleaner needs to be on the books if they earn $2,400 or more in any given year.

We file social security, Medicare and unemployment taxes for our cleaner, plus maintain a worker’s comp policy.

I think we are just under that at $180 once per month. Not sure I see the distinction though between a house cleaner or a repair person I hire for a big job (over 2400) and no one puts a repair person or company on payroll. The housekeepers don't seem like they would pass the employee test because they don't take direction from us (they dont even talk to us) and they supply their own tools.

The distinction is between hiring people who are employees of another company (cleaning company, plumbing company, HVAC company) and hiring an individual. If you are hiring an individual who does not work for a company that is providing them a W2, then the $2500 limit comes into effect. If you are really only paying $180/month, you are under that amount and don’t have to pay on the books. Most people will go over that amount for a regular housecleaner. Most people with security clearances will not even engage in such an arrangement if they will get close to the limit because a mistake could cost them their clearance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

[Anonymous]

Anonymous wrote:Will you pay more than $2500 to an individual? My understanding is that’s the threshold where you have to pay taxes. For example, I have an occasional date night high school babysitter and we don’t pay taxes for her. She’s also picked the kids up / dropped kids off before. On average she probably gets $100 a month (cash at $20 an hour)

this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We pay our cleaners with a check. I have no idea whether they report the income but I don't see it as my problem any more so than when I hire people for repairs or other work on the house.

Wrong. A house cleaner needs to be on the books if they earn $2,400 or more in any given year.

We file social security, Medicare and unemployment taxes for our cleaner, plus maintain a worker’s comp policy.

I think we are just under that at $180 once per month. Not sure I see the distinction though between a house cleaner or a repair person I hire for a big job (over 2400) and no one puts a repair person or company on payroll. The housekeepers don't seem like they would pass the employee test because they don't take direction from us (they dont even talk to us) and they supply their own tools.

The distinction is between hiring people who are employees of another company (cleaning company, plumbing company, HVAC company) and hiring an individual. If you are hiring an individual who does not work for a company that is providing them a W2, then the $2500 limit comes into effect. If you are really only paying $180/month, you are under that amount and don’t have to pay on the books. Most people will go over that amount for a regular housecleaner. Most people with security clearances will not even engage in such an arrangement if they will get close to the limit because a mistake could cost them their clearance.

In the case of a cleaner though wouldn't it only be a 1099? They come when they want (once per month but they pick the day and time), take no direction from me (they are firm that their services encompass xyz and that's it), provide their own tools. When I look at the IRS test everything points to a contractor or just doesn't apply at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

my god. seriously? In your experience, what is the limit that one can pay an individual service provider per year before triggering these sorts of requirements? It cannot possibly be that hiring a babysitter once for two hours at 20 bucks per hour triggers these requirements, is it? Have you really seen someone losing their clearance / job for paying a part time housekeeper/babysitter/dog walker in cash rather than through W-2 with payroll/SS taxes?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

my god. seriously? In your experience, what is the limit that one can pay an individual service provider per year before triggering these sorts of requirements? It cannot possibly be that hiring a babysitter once for two hours at 20 bucks per hour triggers these requirements, is it? Have you really seen someone losing their clearance / job for paying a part time housekeeper/babysitter/dog walker in cash rather than through W-2 with payroll/SS taxes?

Those things are different then hiring a Nanny that works only for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

my god. seriously? In your experience, what is the limit that one can pay an individual service provider per year before triggering these sorts of requirements? It cannot possibly be that hiring a babysitter once for two hours at 20 bucks per hour triggers these requirements, is it? Have you really seen someone losing their clearance / job for paying a part time housekeeper/babysitter/dog walker in cash rather than through W-2 with payroll/SS taxes?

Those things are different then hiring a Nanny that works only for you.

ah okay so the difference is whether you are their sole client? The reverse sounds too ridiculous. If I pay the neighbor's kids $20 to come water the plants and feed the dog for two days I I can't understand how that could be a security risk if I don't collect their SS number and take taxes out of their pay/pay employer SS taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

my god. seriously? In your experience, what is the limit that one can pay an individual service provider per year before triggering these sorts of requirements? It cannot possibly be that hiring a babysitter once for two hours at 20 bucks per hour triggers these requirements, is it? Have you really seen someone losing their clearance / job for paying a part time housekeeper/babysitter/dog walker in cash rather than through W-2 with payroll/SS taxes?

Those things are different then hiring a Nanny that works only for you.

ah okay so the difference is whether you are their sole client? The reverse sounds too ridiculous. If I pay the neighbor's kids $20 to come water the plants and feed the dog for two days I I can't understand how that could be a security risk if I don't collect their SS number and take taxes out of their pay/pay employer SS taxes.

NP and you keep making yourself sound dumber. It's not about "in someone's experience," it's about what the law is. There are specific laws around domestic employees that are very easy to look up, moron. Since you seem incapable of doing this, however, here are some links to get you started: https://www.irs.gov/taxtopics/tc756 and https://www.irs.gov/forms-pubs/about-publication-926.

[Anonymous]

OP- if you happen to be in Chicago, I can help you find someone

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We pay our cleaners with a check. I have no idea whether they report the income but I don't see it as my problem any more so than when I hire people for repairs or other work on the house.

Wrong. A house cleaner needs to be on the books if they earn $2,400 or more in any given year.

We file social security, Medicare and unemployment taxes for our cleaner, plus maintain a worker’s comp policy.

I think we are just under that at $180 once per month. Not sure I see the distinction though between a house cleaner or a repair person I hire for a big job (over 2400) and no one puts a repair person or company on payroll. The housekeepers don't seem like they would pass the employee test because they don't take direction from us (they dont even talk to us) and they supply their own tools.

You're talking past everyone. A housekeeper and a cleaning person aren't the same thing. Housekeepers are more like Alice on the Brady Bunch and are in the same situation as nannies. They take direction from their employer, the family. It's like a full time gardener vs a lawn mowing service once a week.

The IRS does look into how nannies are paid and whether employment taxes are being paid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

my god. seriously? In your experience, what is the limit that one can pay an individual service provider per year before triggering these sorts of requirements? It cannot possibly be that hiring a babysitter once for two hours at 20 bucks per hour triggers these requirements, is it? Have you really seen someone losing their clearance / job for paying a part time housekeeper/babysitter/dog walker in cash rather than through W-2 with payroll/SS taxes?

Those things are different then hiring a Nanny that works only for you.

ah okay so the difference is whether you are their sole client? The reverse sounds too ridiculous. If I pay the neighbor's kids $20 to come water the plants and feed the dog for two days I I can't understand how that could be a security risk if I don't collect their SS number and take taxes out of their pay/pay employer SS taxes.

NP and you keep making yourself sound dumber. It's not about "in someone's experience," it's about what the law is. There are specific laws around domestic employees that are very easy to look up, moron. Since you seem incapable of doing this, however, here are some links to get you started: https://www.irs.gov/taxtopics/tc756 and https://www.irs.gov/forms-pubs/about-publication-926.

I am not the PP but would like to respond. Clearence adjudication consists of several factors and a "whole" person approach. I have talked to various security officers and have high level clearance that got renewed a few times. Never was this question asked nor do they care what you are doing with your gardener or dog walker. Having a nanny in the home is another issue, of course. You need a lot of maturity if you started calling names for something they are not aware of. No wonder you are in Fed HR and a lot of them don't carry Clearence more than public trust.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does you being a federal employee have to do with childcare?

She has a low level security clearance which requires that she pay household employees above board - she must file taxes as an employer. No cash employee's for us.

What does all this has to do with Clearence except foreign nationals living in your house to hiring legal people. Paying cash or by check doesn't make any difference for Clearence as long as the person receiving money is legal in this country.

If you are ignorant about the topic, maybe do a bit of internet research before making a dumb comment.

I work in HR for the federal government and I've seen people lose their clearances and jobs for this. Not worth the risk.

my god. seriously? In your experience, what is the limit that one can pay an individual service provider per year before triggering these sorts of requirements? It cannot possibly be that hiring a babysitter once for two hours at 20 bucks per hour triggers these requirements, is it? Have you really seen someone losing their clearance / job for paying a part time housekeeper/babysitter/dog walker in cash rather than through W-2 with payroll/SS taxes?

Those things are different then hiring a Nanny that works only for you.

ah okay so the difference is whether you are their sole client? The reverse sounds too ridiculous. If I pay the neighbor's kids $20 to come water the plants and feed the dog for two days I I can't understand how that could be a security risk if I don't collect their SS number and take taxes out of their pay/pay employer SS taxes.

NP and you keep making yourself sound dumber. It's not about "in someone's experience," it's about what the law is. There are specific laws around domestic employees that are very easy to look up, moron. Since you seem incapable of doing this, however, here are some links to get you started: https://www.irs.gov/taxtopics/tc756 and https://www.irs.gov/forms-pubs/about-publication-926.

I am not the PP but would like to respond. Clearence adjudication consists of several factors and a "whole" person approach. I have talked to various security officers and have high level clearance that got renewed a few times. Never was this question asked nor do they care what you are doing with your gardener or dog walker. Having a nanny in the home is another issue, of course. You need a lot of maturity if you started calling names for something they are not aware of. No wonder you are in Fed HR and a lot of them don't carry Clearence more than public trust.

Of course clearances don't ask if you have a nanny. The problem comes up when the IRS hits you with a violation and order to pay back all the payroll taxes you failed to send on behalf of your household employee. Also happens if you use illegal immigrant labor and they or someone else file a complaint that you exploited them or, again, didn't pay taxes. Or if you work from DHS and someone reports you for hiring someone without work authorization.

[Anonymous]

Anonymous wrote:What does you being a federal employee have to do with childcare?

If you have to ask …

[Anonymous]

Go through an agency or put your requirements in your ad

[Anonymous]

OP can you get an au pair?
This setup worked very well for us.