Give Nanny 1099? Is this legal?

[Anonymous]

It's 100% illegal.. Look up information, print it out, show them so they don't try to 'convince' you that you NEED to (get royally screwed.)

The fact that they're trying to pull this sneak attack shows their true colors and I'd file a W-2 on their ass and run FAR away from those cheap fools. Trying to benefit off a part-time nanny. Sick.

Please update us on all you do and the outcome.!!

[Anonymous]

Anonymous wrote:It's 100% illegal.. Look up information, print it out, show them so they don't try to 'convince' you that you NEED to (get royally screwed.)

The fact that they're trying to pull this sneak attack shows their true colors and I'd file a W-2 on their ass and run FAR away from those cheap fools. Trying to benefit off a part-time nanny. Sick.

Please update us on all you do and the outcome.!!

Just as illegal, as, I don't know, not reporting income at all? The only other way this could have gone if nothing was withheld from her paycheck all year? So, the parents pulling a sneak attack with 1099 to stick nannies with all the taxes is sick, but the nanny essentially doing the same thing (sticking the parents with all the taxes) is just fine?

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's 100% illegal.. Look up information, print it out, show them so they don't try to 'convince' you that you NEED to (get royally screwed.)

The fact that they're trying to pull this sneak attack shows their true colors and I'd file a W-2 on their ass and run FAR away from those cheap fools. Trying to benefit off a part-time nanny. Sick.

Please update us on all you do and the outcome.!!

Just as illegal, as, I don't know, not reporting income at all? The only other way this could have gone if nothing was withheld from her paycheck all year? So, the parents pulling a sneak attack with 1099 to stick nannies with all the taxes is sick, but the nanny essentially doing the same thing (sticking the parents with all the taxes) is just fine?

Agree that no withholding is a red flag. Assume nanny did not get an itemized paystub with her check.

If nothing was being withheld, nanny should have at least been submitting her personal income tax to the state and IRS. Household employers are not requires to withhold PIT.

[Anonymous]

I hope you were getting checks, not cash, OP.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's 100% illegal.. Look up information, print it out, show them so they don't try to 'convince' you that you NEED to (get royally screwed.)

The fact that they're trying to pull this sneak attack shows their true colors and I'd file a W-2 on their ass and run FAR away from those cheap fools. Trying to benefit off a part-time nanny. Sick.

Please update us on all you do and the outcome.!!

Just as illegal, as, I don't know, not reporting income at all? The only other way this could have gone if nothing was withheld from her paycheck all year? So, the parents pulling a sneak attack with 1099 to stick nannies with all the taxes is sick, but the nanny essentially doing the same thing (sticking the parents with all the taxes) is just fine?

Well the employers are solely responsible for withholding those taxes (social and medicare)and sending them into the IRS quarterly. If they didn't do it the nanny isn't really sticking it to them, is their fault for not researching their roles as employers and handling their duties.

[Anonymous]

You don't have to send them quarterly for domestic employees. You can pay them all on your personal income tax in April.

[Anonymous]

Anonymous wrote:You don't have to send them quarterly for domestic employees. You can pay them all on your personal income tax in April.

Hmm are you sure because 4nannytaxes.com seems to differ from what you are saying. The employer IS responsible for withholding the amount from the paychecks. If they don't do this throughout the year, it seems a little ridiculous that they would go back to the employee and say "oops" we need that money back at the end of the year. The IRS won't go after the nanny, but the family if these taxes are not paid.Getting a little off track of this thread, but families please know your responsibilities!

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don't have to send them quarterly for domestic employees. You can pay them all on your personal income tax in April.

Hmm are you sure because 4nannytaxes.com seems to differ from what you are saying. The employer IS responsible for withholding the amount from the paychecks. If they don't do this throughout the year, it seems a little ridiculous that they would go back to the employee and say "oops" we need that money back at the end of the year. The IRS won't go after the nanny, but the family if these taxes are not paid.Getting a little off track of this thread, but families please know your responsibilities!

The family has to withhold FICA, but they don't have to pay it to the IRS quarterly. It becomes part of their total tax bill which they can pay at the end of the year. Of course, if your tax bill is large enough, you will owe penalties so you effectively need to either pay it quarterly or adjust your withholding so it comes out of your paycheck.

[webbkathy]

Not only is it wrong to issue a 1099 to a nanny, but the IRS has a temporary amnesty program (through June 30) to allow families who have done it wrong in the past to come forward, pay a minor fine (not back taxes) and do it correctly (W-2) going forward.

http://www.info.4nannytaxes.com/blog-0/bid/95153/Nanny-Tax-Amnesty-Prelude-to-IRS-Enforcement

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You don't have to send them quarterly for domestic employees. You can pay them all on your personal income tax in April.

Hmm are you sure because 4nannytaxes.com seems to differ from what you are saying. The employer IS responsible for withholding the amount from the paychecks. If they don't do this throughout the year, it seems a little ridiculous that they would go back to the employee and say "oops" we need that money back at the end of the year. The IRS won't go after the nanny, but the family if these taxes are not paid.Getting a little off track of this thread, but families please know your responsibilities!

The family has to withhold FICA, but they don't have to pay it to the IRS quarterly. It becomes part of their total tax bill which they can pay at the end of the year. Of course, if your tax bill is large enough, you will owe penalties so you effectively need to either pay it quarterly or adjust your withholding so it comes out of your paycheck.

This is correct. We get a large refund each year because of ciecumstance which will not allow us to adjust our withholding in advance, so it just comes out of that (we get a smaller refund). So, basically, we don't pay her that portion of FICA all year round, then we pay it in one lump sum to the IRS. We also withhold federal taxes for her and do the same thing.