Nanny taxes question

[Anonymous]

We just hired a new nanny who started 2 weeks ago. When we hired her we agreed on $20/hour but it seems like we had a miscommunication about exactly what that meant. To us, we thought it meant we would pay $20 per hour and deduct taxes from that. However, my nanny thought she would net $20/hour after the taxes are deducted and is asking us to increase her pay to that.

Clearly a rookie mistake on our part for not clarifying, but is it actually standard to pay taxes on top of the agreed upon hourly rate (she says that is what is typical among her friends).

Adding the taxes on top is definitely more than we are comfortable spending right now, especially since we want to grow with this nanny and keep her for several years if possible.

[Anonymous]

Sounds like she was expecting to be paid under the table.

[Anonymous]

Anonymous wrote:Sounds like she was expecting to be paid under the table.

+1.

[Anonymous]

No one ever quotes net. The nanny you chose doesn’t sound experienced or very bright (how could you possibly know what her deductions would be?).

Consider this your first red flag.

-signed, a nanny

[Anonymous]

The only nannies expecting a quoted rate to be net are nannies who have always been paid in cash or with a 1099. Clarify that you are paying legally, with a W2, and point to your contract which should have the quoted rate.

[Anonymous]

Anonymous wrote:No one ever quotes net. The nanny you chose doesn’t sound experienced or very bright (how could you possibly know what her deductions would be?).

Consider this your first red flag.

-signed, a nanny

Agree.

[Anonymous]

Anonymous wrote:The only nannies expecting a quoted rate to be net are nannies who have always been paid in cash or with a 1099. Clarify that you are paying legally, with a W2, and point to your contract which should have the quoted rate.

+1

[Anonymous]

Her method doesn't make sense at ALL. I had a nanny ask for this once and she actually expected for us to basically pay any tax bill she had at the end of the year after filing her taxes. I explained that we would not be able to do this for several reasons, including because we did not want to have to pay more or less depending on her specific circumstances- for example if we just paid her taxes then we would be paying more if she certain deductions and maybe even a different amount if she was married.

I would maybe consider re-negotiating her pay (maybe, and only because you seem to like her and want her to continue) but I would NOT agree to a specific rate after taxes. There are just too many variables.

[Anonymous]

Any legal job quoted in the US is quoted gross pay (before taxes are withheld). The exception is with building contractors.

I would tell her you pay legal. Her pay is $20 per hour before taxes.

She is trying to scam the government and legal taxpayers.

[Anonymous]

Anonymous wrote:We just hired a new nanny who started 2 weeks ago. When we hired her we agreed on $20/hour but it seems like we had a miscommunication about exactly what that meant. To us, we thought it meant we would pay $20 per hour and deduct taxes from that. However, my nanny thought she would net $20/hour after the taxes are deducted and is asking us to increase her pay to that.

Clearly a rookie mistake on our part for not clarifying, but is it actually standard to pay taxes on top of the agreed upon hourly rate (she says that is what is typical among her friends).

Adding the taxes on top is definitely more than we are comfortable spending right now, especially since we want to grow with this nanny and keep her for several years if possible.

Not a rookie mistake. In the US everyone, and I mean every business quotes gross pay before taxes. This is NOT a mistake on your part. She is trying to scam you.
Hold your ground.

If she applies to 20 other places all 20 places will quote gross pay as that is what we do in the US when folks are paid legally.

[Anonymous]

This is NOT a rookie mistake on your part.

She is playing you. Stand your ground.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sounds like she was expecting to be paid under the table.

+1.

+1

[Anonymous]

Your nanny isn’t very smart.

[Anonymous]

Anonymous wrote:The only nannies expecting a quoted rate to be net are nannies who have always been paid in cash or with a 1099. Clarify that you are paying legally, with a W2, and point to your contract which should have the quoted rate.

There are zero circumstances where a 1099 is legal for a nanny.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No one ever quotes net. The nanny you chose doesn’t sound experienced or very bright (how could you possibly know what her deductions would be?).

Consider this your first red flag.

-signed, a nanny

Agree.

+2, career nanny