Anonymous wrote:Most nanny prefer their gifts be in cash

I think most people would like their compensation and bonuses to be legal. Just because you prefer something doesn’t make it legal.

Most nanny prefer their gifts be in cash

Anonymous wrote:We hired a professional Nanny, we love her dearly. She has been a huge help in our household. I’ve been following this threat and decided to ask her directly how would she like the bonus to be paid and she preferred cash.
We gave her 2k(well deserved it)as this is her 1st year with us. Didn’t have any problems getting her money from bank.
(Not problem at all if you have clearance, FYI.)

Why is this not a problem if you have clearance? You broke the law. You might not get caught (probably won’t) but it could be a problem is you do. My husband has clearance and wouldn’t dream of paying our nanny under the table.

We hired a professional Nanny, we love her dearly. She has been a huge help in our household. I’ve been following this threat and decided to ask her directly how would she like the bonus to be paid and she preferred cash.
We gave her 2k(well deserved it)as this is her 1st year with us. Didn’t have any problems getting her money from bank.
(Not problem at all if you have clearance, FYI.)

Payroll
I have to account for it on my end

I pay for a trip to the salon, including the tip. The money goes directly to the salon. Or for a couple of massages, whatever she prefers at the time.

Anonymous wrote:This is the weirdest thread on DCUM, which is saying a lot. I guess the majority of UMC women are generally okay with white collar crime as long as they have a good reason for committing it.

Fascinating.

Part of it is likely that they don’t view nannies as the working professionals they are and instead view them as household help that somehow excuses them from being above the board employers.

This is the weirdest thread on DCUM, which is saying a lot. I guess the majority of UMC women are generally okay with white collar crime as long as they have a good reason for committing it.

Fascinating.

Anonymous wrote:

Anonymous wrote:Past 7 years we’ve given bonus via personal check; no tax evasion. Do you tax your housekeeping crew, cleaners, nail tech and Botox aesthetician?If you’re that strict in your own head, can’t you get money from the bank or is that a big deal for you? Unless you’re given your employee more than 5k then by all means, run it through payroll company.

Interesting “know it all” folks here.

I’m not the employer of all the people you list, save for maybe the housekeeping crew, however we pay them less than whatever the yearly threshold is to consider them a household employee. A nanny is a household employee. You have to tax their bonus technically. Many don’t. It is the law though.

Our family doesn’t tact bonus as per nanny request and we’re totally okay with that. To each it’s own.

Anonymous wrote:You can gift someone up to 8k

+1

Anonymous wrote:

Anonymous wrote:Past 7 years we’ve given bonus via personal check; no tax evasion. Do you tax your housekeeping crew, cleaners, nail tech and Botox aesthetician?If you’re that strict in your own head, can’t you get money from the bank or is that a big deal for you? Unless you’re given your employee more than 5k then by all means, run it through payroll company.

Interesting “know it all” folks here.

I’m not the employer of all the people you list, save for maybe the housekeeping crew, however we pay them less than whatever the yearly threshold is to consider them a household employee. A nanny is a household employee. You have to tax their bonus technically. Many don’t. It is the law though.

We give and gift the nanny the way she wanted, we wanted to make sure we accommodated her. It’s up to your discretion whatever you wish to do. Just don’t screw her.

It doesn’t take long to search this and find the same answer over and over. A nanny is your employee. Any bonus or gift is considered taxable except in very explicit situations. You probably won’t get caught but it is certainly illegal and you could incur a penalty. People saying if it’s less than $5-$8k then it’s fine should be explicit about what fine means—that you won’t likely be caught but that you aren’t following the law.

“Any wages, including bonuses, are considered taxable income, even if you pay in cash. This means you can and should include the amount in your own annual tax filing and you should advise your nanny to note it as income in his/her tax filing to avoid any trouble with the IRS.

Lest you think you can simply give your nanny a tax-free gift in lieu of a bonus, think again. Because your nanny is your employee, any item of cash value is deemed compensation, and is therefore taxable. If you wish to avoid taxation, you could choose to pay directly for schooling, medical expenses, health insurance, a cell phone, or other tax-free gifts instead of offering cash as a bonus, but considering your nanny may rely on that extra cash around the holidays, you may just want to add it to his/her final check each year, regardless of taxation.”

https://nannifiedlife.com/bonuses

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Anonymous wrote:We never tax the bonus, must be given in personal check or cash.

Must?

Yeah…I hope this person is joking. Cash and check to avoid having taxes taken out is literally tax evasion, is illegal, and hopefully you and the nanny don’t get caught because what a headache. If you are paying wages through a payroll system to be on the up and up why would you avoid this at Christmas?? Put another way, how would you feel if your employer paid you a bonus under the table?

It is NOT tax evasion. You give your nanny a check or cash w/o taxing her. What kind of person are you to tax the ‘bonus’ ?!!! Common sense is something that some folks don’t have.

What kind of person am I? Someone who follows the law. Jesus lady. My husband could be disbarred for giving a cash bonus.

Attorney’s wife here and give a well deserved bonus (personal check) to our wonderful Nanny. The fact that you’re taxing your employee/caregiver is absolutely ridiculous. Check with your financial advisor and your accountant that giving bonus in form of cash/check it’s totally fine.
Perhaps, go to ATM/teller and withdraw cash? That ain’t taxable!!!

Don’t trust a financial adviser on this. All accountants will tell you the money is taxable.

Anonymous wrote:Cash.
Won’t it get taxed if it goes through payroll?

It should be taxed if given as cash, too. Unless you are advocating cheating on taxes? I’m sure you wouldn’t be *that* kind of despicable leech on society.

Anonymous wrote:You can gift someone up to 8k

Not your own employees. No you can’t.