Do you give bonus in cash/check or though your payroll software?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most nanny prefer their gifts be in cash

I think most people would like their compensation and bonuses to be legal. Just because you prefer something doesn’t make it legal.

Sorry I meant to say most would like their compensation and bonuses not to be taxed. That doesn’t make it legal or okay though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most nanny prefer their gifts be in cash

I think most people would like their compensation and bonuses to be legal. Just because you prefer something doesn’t make it legal.

Sorry I meant to say most would like their compensation and bonuses not to be taxed. That doesn’t make it legal or okay though.

It doesn’t matter, cash or check is the norm. Not illegal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We hired a professional Nanny, we love her dearly. She has been a huge help in our household. I’ve been following this threat and decided to ask her directly how would she like the bonus to be paid and she preferred cash.
We gave her 2k(well deserved it)as this is her 1st year with us. Didn’t have any problems getting her money from bank.
(Not problem at all if you have clearance, FYI.)

Why is this not a problem if you have clearance? You broke the law. You might not get caught (probably won’t) but it could be a problem is you do. My husband has clearance and wouldn’t dream of paying our nanny under the table.

Nanny on payroll, a one time bonus (cash or check whichever nanny prefers)at the end of year doesn’t disrupt your sleep.

[Anonymous]

Anonymous wrote:Most nanny prefer their gifts be in cash

Of course, its a damn GIFT! Yet, some folks here need to get their game together.

[Anonymous]

Do you request taxes on a birthday party gift

[Anonymous]

Anonymous wrote:Asking your caregiver would be a wise answer. Once we had a nanny that kindly asked not to do bonus b/c if she declared more money she and her son would lose their healthcare(she was under Obamacare.) After doing some research and asking the accountant the advice was to gift our household employees with either cash bonus/personal check as long as the bonus is a once a year thing. When we wrote her a check she was so thankful.

+1

[Anonymous]

Good companies pay the bonus as perdiem.
So it’s non taxable and a real bonus.

[Anonymous]

Anonymous wrote:Do you request taxes on a birthday party gift

This isn't a birthday gift. It's taxable income.

[Anonymous]

https://www.care.com/hp/payroll-rules-for-holiday-gifts-and-bonuses

"I received a bonus, but there are taxes taken out of it. Why is that?

Any amount of cash or payment given to you by your employer is subject to taxes because it’s considered part of your income. Generally, employers put an extra line item on your paycheck showing a bonus, but if you look closely at your total earnings for that pay period, it will be higher than usual to account for the bonus.

What if I received a gift card instead of extra money?

The IRS doesn’t make a distinction between cash and gift cards, so a gift card is treated like another form of income. You’ll have taxes taken out of the value of it, just like if it was part of your normal pay for the week."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most nanny prefer their gifts be in cash

I think most people would like their compensation and bonuses to be legal. Just because you prefer something doesn’t make it legal.

Sorry I meant to say most would like their compensation and bonuses not to be taxed. That doesn’t make it legal or okay though.

It doesn’t matter, cash or check is the norm. Not illegal.

Prove it.

[Anonymous]

If you're talking about through my company, bonuses are all done via payroll check. If you're talking about Christmas gifts given at Christmas to housecleaners, etc. cash like a gift. Similar like I do when giving wedding gifts or what not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We never tax the bonus, must be given in personal check or cash.

Must?

Yeah…I hope this person is joking. Cash and check to avoid having taxes taken out is literally tax evasion, is illegal, and hopefully you and the nanny don’t get caught because what a headache. If you are paying wages through a payroll system to be on the up and up why would you avoid this at Christmas?? Put another way, how would you feel if your employer paid you a bonus under the table?

It is NOT tax evasion. You give your nanny a check or cash w/o taxing her. What kind of person are you to tax the ‘bonus’ ?!!! Common sense is something that some folks don’t have.

What kind of person am I? Someone who follows the law. Jesus lady. My husband could be disbarred for giving a cash bonus.

Attorney’s wife here and give a well deserved bonus (personal check) to our wonderful Nanny. The fact that you’re taxing your employee/caregiver is absolutely ridiculous. Check with your financial advisor and your accountant that giving bonus in form of cash/check it’s totally fine.
Perhaps, go to ATM/teller and withdraw cash? That ain’t taxable!!!

Attorney here. Your nanny is a household employee. Anything amount you give to her is taxable income should be treated as such. This is a really basic question. Like first day of personal income tax class in law school.

Whether people follow the law is a different question.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Asking your caregiver would be a wise answer. Once we had a nanny that kindly asked not to do bonus b/c if she declared more money she and her son would lose their healthcare(she was under Obamacare.) After doing some research and asking the accountant the advice was to gift our household employees with either cash bonus/personal check as long as the bonus is a once a year thing. When we wrote her a check she was so thankful.

+1

Um. No. The nanny does not get to decide how to characterize this. You may allow your nanny to choose whether you follow the law or not, but it is not something they can actually be changed by the nanny or you.

[Anonymous]

If your nanny is in school, you can give it untaxed as tuition reimbursement through your payroll service

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We never tax the bonus, must be given in personal check or cash.

Must?

Yeah…I hope this person is joking. Cash and check to avoid having taxes taken out is literally tax evasion, is illegal, and hopefully you and the nanny don’t get caught because what a headache. If you are paying wages through a payroll system to be on the up and up why would you avoid this at Christmas?? Put another way, how would you feel if your employer paid you a bonus under the table?

It is NOT tax evasion. You give your nanny a check or cash w/o taxing her. What kind of person are you to tax the ‘bonus’ ?!!! Common sense is something that some folks don’t have.

What kind of person am I? Someone who follows the law. Jesus lady. My husband could be disbarred for giving a cash bonus.

Attorney’s wife here and give a well deserved bonus (personal check) to our wonderful Nanny. The fact that you’re taxing your employee/caregiver is absolutely ridiculous. Check with your financial advisor and your accountant that giving bonus in form of cash/check it’s totally fine.
Perhaps, go to ATM/teller and withdraw cash? That ain’t taxable!!!

Attorney here. Your nanny is a household employee. Anything amount you give to her is taxable income should be treated as such. This is a really basic question. Like first day of personal income tax class in law school.

Whether people follow the law is a different question.

You sound like you are from the 1950s.