Reply to people don't realize they have to pay payroll taxes on individual housecleaners

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Low income people often DO know that they have leverage over employers if they are paid under the table.  I'm the PP from the previous thread whose friend got taken the cleaners when her fired housekeeper filed for unemployment. It was clear the housecleaner knew exactly how to exact revenge for the firing. It wouldn't be out of the relm of possibility in this area for a disgruntled, under the table employee to resort to blackmail if a relationship went sour.

After watching what my friend went through, I would never ever ever pay someone under the table.  Not worth it!!!!![/quote]

I second that last part.  I would also never let someone work in my house until after I have established (a) if they are an LLC/company and (b) if they are bonded and insured.  You set yourself for a lot of risk and liability.

I will also add that I have a neighbor that wants to let her long-term (10+ years) bi-weekly housekeeper to because the quality has gone waaaaay down despite several attempts to communicate improvement.  She alluded to the fact that she is worried to let her go because of the fines she would face for not paying taxes and unemployment.  It would not be a pretty situation for sure.  The housekeeper may very well know she has job security because of this and has no incentive to do a good job.

The fines for the employers are huge.  The fines for the employee that hasn't paid taxes are much smaller and are often waived at the end of day.  People, why would you put yourself in this situation to save a few $$$???  Hire a service or hire legally - it's really not that hard. Just read the IRS publication for household employers!!! 
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