Anonymous wrote:For them - tax fraud is huge if they don't account for their income. They also have to pay a higher tax rate to be 'self-employed'. Off the books also tends to have 'looser' contract terms. Will you even give them an employment contract? How will they enforce employment terms like sick leave, OT, and health care? What happens if you decide to just quit using them 2-months into a 1-year agreement?

For you - tax fraud and future employment security claims if someone finds out https://en.wikipedia.org/wiki/Nannygate

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My neighbor's 19yo DD works as a nanny while she is home from college this summer. It is more like a mother's helper to a SAHM of 4 young kids. She is paid @ $100 a day "cash" to keep them company, take them to the pool and park and put the babies down for naps. She works 7 hours, 4 days a week M - Th.

I don't know for sure, but I would bet that she is not going to pay taxes on it. Her mom told me like it was a good thing that she has a "fun" job and is making so much more than she made previous summers.

My DD works retail at a local shop and makes $11 an hour. She does 6 hour shifts, 5 days a week, and is bring home HALF. I know it's wrong, but I would allow her to do somethinglike this nanny thing (off the books) she could find it.

They might not be hitting the minimum threshold for domestic worker (somethng like 30k a year in md) so technically don’t have to but also your daughter is getting ss and unemployment stocked away which may come in handy later. I really worry about retirement for the lifetime off the books nannies. There are too many employers willing to screw them over.

$30k?!? The limit is actually $2,300 and it’s federal.

Anonymous wrote:

Anonymous wrote:I have always wondered how the IRS doesn't catch this kind of tax fraud- how stupid are they? I mean 20/hr is 40k a year. You're not paying in physical cash, you're still writing checks, wiring money or venmo. There's a huge paper trail.

They catch it when you flaunt it and someone rats on you (posting lots of vacation pics with nanny while the neighbor 3 houses over knows you aren't paying her above board) or you become a big deal in the news - through crime (Derek Chauvin was busted for tax fraud only after he murdered someone on social media) or political/business infamy (the Nannygate/Trump effect).

Basically people who keep their head down are fine. The IRS isn't checking everyone's bank accounts.

Anonymous wrote:

Anonymous wrote:I have always wondered how the IRS doesn't catch this kind of tax fraud- how stupid are they? I mean 20/hr is 40k a year. You're not paying in physical cash, you're still writing checks, wiring money or venmo. There's a huge paper trail.

They catch it when you flaunt it and someone rats on you (posting lots of vacation pics with nanny while the neighbor 3 houses over knows you aren't paying her above board) or you become a big deal in the news - through crime (Derek Chauvin was busted for tax fraud only after he murdered someone on social media) or political/business infamy (the Nannygate/Trump effect).

Basically people who keep their head down are fine. The IRS isn't checking everyone's bank accounts.

Anonymous wrote:

Anonymous wrote:Well, if you and nanny part acrimoniously, she can file for unemployment and rat you out to qualify. She’ll owe a little. You’ll owe a shit ton of money in back taxes, penalties, a portion of the nanny’s taxes, AND you’ll likely be audited for past years plus be more likely to be audited in the future.

Don’t give in to nannies who want you to commit tax fraud. There are law abiding nannies out there.

This, no I’ve thought it would happen then Covid hit. Nannies who were paid under the table couldn’t file for unemployment.

Anonymous wrote:

Anonymous wrote:My neighbor's 19yo DD works as a nanny while she is home from college this summer. It is more like a mother's helper to a SAHM of 4 young kids. She is paid @ $100 a day "cash" to keep them company, take them to the pool and park and put the babies down for naps. She works 7 hours, 4 days a week M - Th.

I don't know for sure, but I would bet that she is not going to pay taxes on it. Her mom told me like it was a good thing that she has a "fun" job and is making so much more than she made previous summers.

My DD works retail at a local shop and makes $11 an hour. She does 6 hour shifts, 5 days a week, and is bring home HALF. I know it's wrong, but I would allow her to do somethinglike this nanny thing (off the books) she could find it.

They might not be hitting the minimum threshold for domestic worker (somethng like 30k a year in md) so technically don’t have to but also your daughter is getting ss and unemployment stocked away which may come in handy later. I really worry about retirement for the lifetime off the books nannies. There are too many employers willing to screw them over.

Anonymous wrote:My neighbor's 19yo DD works as a nanny while she is home from college this summer. It is more like a mother's helper to a SAHM of 4 young kids. She is paid @ $100 a day "cash" to keep them company, take them to the pool and park and put the babies down for naps. She works 7 hours, 4 days a week M - Th.

I don't know for sure, but I would bet that she is not going to pay taxes on it. Her mom told me like it was a good thing that she has a "fun" job and is making so much more than she made previous summers.

My DD works retail at a local shop and makes $11 an hour. She does 6 hour shifts, 5 days a week, and is bring home HALF. I know it's wrong, but I would allow her to do somethinglike this nanny thing (off the books) she could find it.

Anonymous wrote:Well, if you and nanny part acrimoniously, she can file for unemployment and rat you out to qualify. She’ll owe a little. You’ll owe a shit ton of money in back taxes, penalties, a portion of the nanny’s taxes, AND you’ll likely be audited for past years plus be more likely to be audited in the future.

Don’t give in to nannies who want you to commit tax fraud. There are law abiding nannies out there.

Anonymous wrote:People who pay off the book should be prosecuted and serve prison time as well as those who want to be paid off the books. But they are probably undocumented and can be expelled.