Paying nannies under the table

[Anonymous]

I am really surprised, in this government, security clearance, political, town- how many people are paying their nannies in cash without withholding taxes. I'm surprised, if I search through Care.com that care allows nannies to say they are 'willing to have taxes withheld,' and numerous candidates are not. This is mostly just a vent- I'm getting tired of contacting nannies who have great references and then when I say that we pay legally they are not interested.

[Anonymous]

Most families already don’t pay well, so when you factor in taxes that $15-$18/hr becomes $13-$16/hr. Seems kind of low when you're asking someone to take care of, keep safe and love your child.

[Anonymous]

Are they illegal immigrants?

[Anonymous]

Professional, career nannies require professional payment.

[Anonymous]

Most American parents can’t really afford to outsource infant and toddler care. It’s too labor-intensive, so they settle for subpar cheap childcare.

[Anonymous]

Find someone here legally. How about an agency?

[Anonymous]

What's funny is a lot of these people with shady paid-under-the-table nannies go out of their way to put down parents who use legitimate daycares.

[Anonymous]

Lax enforcement is the reason.

[Anonymous]

Anonymous wrote:I am really surprised, in this government, security clearance, political, town- how many people are paying their nannies in cash without withholding taxes. I'm surprised, if I search through Care.com that care allows nannies to say they are 'willing to have taxes withheld,' and numerous candidates are not. This is mostly just a vent- I'm getting tired of contacting nannies who have great references and then when I say that we pay legally they are not interested.

You are only legally required to withhold taxes for social security and medicare. Withholding taxes for state and federal income is optional under the law. And it is left up to the employee, not the employer to request withholding.

You should read up on how this works before ranting about it being illegal. It's not.

[Anonymous]

LOL

You're surprised that people in government don't want to follow laws and regulations? Do you read the news?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am really surprised, in this government, security clearance, political, town- how many people are paying their nannies in cash without withholding taxes. I'm surprised, if I search through Care.com that care allows nannies to say they are 'willing to have taxes withheld,' and numerous candidates are not. This is mostly just a vent- I'm getting tired of contacting nannies who have great references and then when I say that we pay legally they are not interested.

You are only legally required to withhold taxes for social security and medicare. Withholding taxes for state and federal income is optional under the law. And it is left up to the employee, not the employer to request withholding.

You should read up on how this works before ranting about it being illegal. It's not.

You sound confused. -DP

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am really surprised, in this government, security clearance, political, town- how many people are paying their nannies in cash without withholding taxes. I'm surprised, if I search through Care.com that care allows nannies to say they are 'willing to have taxes withheld,' and numerous candidates are not. This is mostly just a vent- I'm getting tired of contacting nannies who have great references and then when I say that we pay legally they are not interested.

You are only legally required to withhold taxes for social security and medicare. Withholding taxes for state and federal income is optional under the law. And it is left up to the employee, not the employer to request withholding.

You should read up on how this works before ranting about it being illegal. It's not.

I think we all understand OP is talking about people paying under the table without remitting either the employee or employer side of the payroll taxes. That's clearly illegal. And no, your nanny is definitely NOT an independent contractor that you can issue a 1099.

[Anonymous]

I agree that 99% of nannies are not independent contractors.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am really surprised, in this government, security clearance, political, town- how many people are paying their nannies in cash without withholding taxes. I'm surprised, if I search through Care.com that care allows nannies to say they are 'willing to have taxes withheld,' and numerous candidates are not. This is mostly just a vent- I'm getting tired of contacting nannies who have great references and then when I say that we pay legally they are not interested.

You are only legally required to withhold taxes for social security and medicare. Withholding taxes for state and federal income is optional under the law. And it is left up to the employee, not the employer to request withholding.

You should read up on how this works before ranting about it being illegal. It's not.

I think we all understand OP is talking about people paying under the table without remitting either the employee or employer side of the payroll taxes. That's clearly illegal. And no, your nanny is definitely NOT an independent contractor that you can issue a 1099.

Well OP questioned care.com's practice of making it optional for nannies to have their taxes withheld, so it's not clear to me that OP understands it IS optional, with the exception of the 7.65% for social security and medicare (FICA) if you are paying them more than $2,100 in a year. And technically the employer can choose to pay FICA on behalf of the employee, and then they don't have to withhold the tax.

https://www.irs.gov/taxtopics/tc756

[Anonymous]

I mean I'd like to get paid under the table too. Who wouldn't? Lots of us can get insurance through our spouse's jobs.