Extortion - how to deal with?

[Anonymous]

I’m guessing OP didn’t pay taxes and the nanny now realizes that she earned less than she thought if she pays taxes and is now threats to rain down exposure consequences. OP if this is the case you owe her and the IRS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op did you 1099 the nanny or claim her on your taxes? If so, yes you owe her money because you messed with her taxes. Nannies are household employees.

No. No claim. She also wasn’t a nanny. She was a driver

Doesn’t matter. You still owe taxes and so does she.

[Anonymous]

As I've read more details here, I feel sorry for OP.
If I were hiring someone for two hours per weekday to drive my kids to/from school and activities, I would've thought of it as an alternative to Uber. I wouldn't have considered them a household employee, paid taxes, and issued a 1099 or whatever.
I can see where someone who is not savvy about taxes would make this mistake.

[Anonymous]

In this area the unicorn after school driving nanny is a hot commodity. Shocked anyone would not realize this.

But then, I pay taxes for my cleaning person, who comes once a week. I feel very strongly that your employees are your responsibility.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op did you 1099 the nanny or claim her on your taxes? If so, yes you owe her money because you messed with her taxes. Nannies are household employees.

No. No claim. She also wasn’t a nanny. She was a driver

Doesn’t matter. You still owe taxes and so does she.

No she doesn’t. You have to make at least 12k to file a tax return. OP is the only one that needed to pay taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op did you 1099 the nanny or claim her on your taxes? If so, yes you owe her money because you messed with her taxes. Nannies are household employees.

No. No claim. She also wasn’t a nanny. She was a driver

Doesn’t matter. You still owe taxes and so does she.

No she doesn’t. You have to make at least 12k to file a tax return. OP is the only one that needed to pay taxes.

You assume that it was the employee’s only job, which seems unlikely given the low pay.

[Anonymous]

I would ignore it until the IRS comes knocking. You may pay back taxes but you are not going to jail. They are just threatening you because they negotiated a bad deal for them and realizing it now. I know you are stressed. Ignore it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op did you 1099 the nanny or claim her on your taxes? If so, yes you owe her money because you messed with her taxes. Nannies are household employees.

No. No claim. She also wasn’t a nanny. She was a driver

Doesn’t matter. You still owe taxes and so does she.

No she doesn’t. You have to make at least 12k to file a tax return. OP is the only one that needed to pay taxes.

You assume that it was the employee’s only job, which seems unlikely given the low pay.

They have multiple clients and say they are part of a larger business.

[Anonymous]

I think she has at least four clients. Maybe more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op did you 1099 the nanny or claim her on your taxes? If so, yes you owe her money because you messed with her taxes. Nannies are household employees.

No. No claim. She also wasn’t a nanny. She was a driver

Doesn’t matter. You still owe taxes and so does she.

No she doesn’t. You have to make at least 12k to file a tax return. OP is the only one that needed to pay taxes.

You assume that it was the employee’s only job, which seems unlikely given the low pay.

Doesn’t matter. All you know is what you pay her. You’d have nothing to use as proof that the employee also should pay taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sounds like you made a dumb decision to pay someone under the table and now you are suffering consequences. It does sound kind of like extortion, actually. Do you know who you are dealing with? Are they scary people?

They seem like they have the ability to be scary because they don’t have a lot of standards to live by but they are also in the neighborhood and people around know them.

And this person was caring for your children?

You are incredibly stupid.

[Anonymous]

Ignore. It’s not worth her while to pursue.

[Anonymous]

If the woman told OP she had a business driving kids, then she isn’t OP’s employee just like an Uber driver, a washing machine repair guy, a plumber, etc—none of these people are your “employees.”

OP didn’t necessarily do anything wrong other than having sketchy people drive her kids around. Doubt this person will “report” OP as she probably isn’t filing her own income taxes

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op did you 1099 the nanny or claim her on your taxes? If so, yes you owe her money because you messed with her taxes. Nannies are household employees.

No. No claim. She also wasn’t a nanny. She was a driver

Doesn’t matter. You still owe taxes and so does she.

No she doesn’t. You have to make at least 12k to file a tax return. OP is the only one that needed to pay taxes.

You assume that it was the employee’s only job, which seems unlikely given the low pay.

They have multiple clients and say they are part of a larger business.

I mean it would help a lot if you would just say what they are actually asking for and on whose behalf. But based on this last post of your OP I am going to surmise that the person you hired was in fact working for someone else and worked for you while on the clock for someone else. They got caught. They now are facing some kind of situation where they need to make restitution . They may or may not have an actual lawyer or maybe they consider google their lawyer and are trying to get you tot pay money to them so they can pay the restitution they owe.

[Anonymous]

Anonymous wrote:
Ignore. It’s not worth her while to pursue.

Yeah, I would ignore it.
You don't owe taxes on behalf of an uber driver, or the guy who trims your hedges.