Extortion - how to deal with?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If I'm understanding correctly, you hired a babysitter. You paid that person under the table. Employers are responsible for paying taxes. A household employee cannot be an independent contractor. But you won't go to jail. You will have to pay what you owe to the government, and there will probably be penalties.

https://www.irs.gov/publications/p926#en_US_2023_publink100086725

How would OP pay the payroll taxes now if she doesn’t have the person’s SSN? Does the IRS just apply the funds based on the name OP supplies?

Heck, we don't even know if this person has the authorization to work because OP didn't do any of this. But the point is that all this person has to do is make a claim with the state of Virginia and OP is in hot water.

[Anonymous]

“I do not owe you any money. Do not contact me again. It will be considered harassment and I will exercise my legal rights accordingly.”

[Anonymous]

Also why would this person want to go this route of somehow exposing my lack of payroll taxes if they also didn’t claim this income on their own taxes? It was only a couple hundred a month.

And how would it benefit me to pay them more? It would just expose me to more taxes I assume. It wouldn’t be in place of paying the taxes.

[Anonymous]

More info here: https://cookcraig.com/beware-of-employee-misclassification-and-overtime-laws-in-virginia/

[Anonymous]

Anonymous wrote:Also why would this person want to go this route of somehow exposing my lack of payroll taxes if they also didn’t claim this income on their own taxes? It was only a couple hundred a month.

And how would it benefit me to pay them more? It would just expose me to more taxes I assume. It wouldn’t be in place of paying the taxes.

How much hourly were you paying this person? Were you paying under minimum wage? Is that why they are asking for more?

[Anonymous]

Let them take you to court and in the unlikely event that happens, get a lawyer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I'm understanding correctly, you hired a babysitter. You paid that person under the table. Employers are responsible for paying taxes. A household employee cannot be an independent contractor. But you won't go to jail. You will have to pay what you owe to the government, and there will probably be penalties.

https://www.irs.gov/publications/p926#en_US_2023_publink100086725

How would OP pay the payroll taxes now if she doesn’t have the person’s SSN? Does the IRS just apply the funds based on the name OP supplies?

Heck, we don't even know if this person has the authorization to work because OP didn't do any of this. But the point is that all this person has to do is make a claim with the state of Virginia and OP is in hot water.

To pay payroll taxes on a babysitter for one to two hours of school? I admit I might have to pay taxes but I don’t need a babysitter anymore so it’s no longer a need and didn’t know this was an issue legitimately. I assume I would just have to pay the taxes along with penalties if the IRS came knocking. Which would likely be less than what is being asked to pay extra. I think the IRS understands part time childcare well enough to not put people in jail over some babysitting hours.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Also why would this person want to go this route of somehow exposing my lack of payroll taxes if they also didn’t claim this income on their own taxes? It was only a couple hundred a month.

And how would it benefit me to pay them more? It would just expose me to more taxes I assume. It wouldn’t be in place of paying the taxes.

How much hourly were you paying this person? Were you paying under minimum wage? Is that why they are asking for more?

Above minimum wage

[Anonymous]

Should I talk to an employment attorney? Or just let it go and block them?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I'm understanding correctly, you hired a babysitter. You paid that person under the table. Employers are responsible for paying taxes. A household employee cannot be an independent contractor. But you won't go to jail. You will have to pay what you owe to the government, and there will probably be penalties.

https://www.irs.gov/publications/p926#en_US_2023_publink100086725

How would OP pay the payroll taxes now if she doesn’t have the person’s SSN? Does the IRS just apply the funds based on the name OP supplies?

Heck, we don't even know if this person has the authorization to work because OP didn't do any of this. But the point is that all this person has to do is make a claim with the state of Virginia and OP is in hot water.

To pay payroll taxes on a babysitter for one to two hours of school? I admit I might have to pay taxes but I don’t need a babysitter anymore so it’s no longer a need and didn’t know this was an issue legitimately. I assume I would just have to pay the taxes along with penalties if the IRS came knocking. Which would likely be less than what is being asked to pay extra. I think the IRS understands part time childcare well enough to not put people in jail over some babysitting hours.

PP didn’t say you would go to jail. They are referring to the law in VA where the employee can sue you personally. You’ll be on the hook for all costs, including their legal fees. In VA the presumption is the person is an employee. You would then owe all back taxes on top of the judgement and costs.

The issue in this case is you said you have no documentation. So nothing in writing about her wage and hours that she worked per day? This person could make up anything and you’ll have to prove they are lying.

[Anonymous]

Anonymous wrote:Should I talk to an employment attorney? Or just let it go and block them?

I posted this earlier, but make copies of their threats and then block them everywhere. Do not engage. At all.

If they get through the blocking and keep harassing you, I would then contact a lawyer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Also why would this person want to go this route of somehow exposing my lack of payroll taxes if they also didn’t claim this income on their own taxes? It was only a couple hundred a month.

And how would it benefit me to pay them more? It would just expose me to more taxes I assume. It wouldn’t be in place of paying the taxes.

How much hourly were you paying this person? Were you paying under minimum wage? Is that why they are asking for more?

Above minimum wage

Really? Cause elsewhere you said a couple of hundred a month for 1-2 hours per day on weekdays.

[Anonymous]

How did you pay them? In cash? If they have any proof that you were paying them they can file a complaint with the state.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If I'm understanding correctly, you hired a babysitter. You paid that person under the table. Employers are responsible for paying taxes. A household employee cannot be an independent contractor. But you won't go to jail. You will have to pay what you owe to the government, and there will probably be penalties.

https://www.irs.gov/publications/p926#en_US_2023_publink100086725

How would OP pay the payroll taxes now if she doesn’t have the person’s SSN? Does the IRS just apply the funds based on the name OP supplies?

Heck, we don't even know if this person has the authorization to work because OP didn't do any of this. But the point is that all this person has to do is make a claim with the state of Virginia and OP is in hot water.

To pay payroll taxes on a babysitter for one to two hours of school? I admit I might have to pay taxes but I don’t need a babysitter anymore so it’s no longer a need and didn’t know this was an issue legitimately. I assume I would just have to pay the taxes along with penalties if the IRS came knocking. Which would likely be less than what is being asked to pay extra. I think the IRS understands part time childcare well enough to not put people in jail over some babysitting hours.

PP didn’t say you would go to jail. They are referring to the law in VA where the employee can sue you personally. You’ll be on the hook for all costs, including their legal fees. In VA the presumption is the person is an employee. You would then owe all back taxes on top of the judgement and costs.

The issue in this case is you said you have no documentation. So nothing in writing about her wage and hours that she worked per day? This person could make up anything and you’ll have to prove they are lying.

No there is documentation on monthly wages and receipts of payments. What is in it for them? They likely didn’t claim the money and it’s clear they were paid what is in writing. What do they get out of taking me to court? All the wages have been paid. Wouldn’t the discussion just be about taxes to the government?

[Anonymous]

Anonymous wrote:How did you pay them? In cash? If they have any proof that you were paying them they can file a complaint with the state.

An app that transferred cash