how do you handle babysitters wages?

[Anonymous]

Anonymous wrote:Babysitters over the age of 18 who work out of the parents' home, using the parents' equipment, food, and supplies, during hours set by the parents and subject to the parents' direction as to things like naptimes, bedtimes, what to feed the kids, etc. are employees as a matter of common law, even if they only work on an occasional basis and earn less than $1800 per year from a particular employer. Occasional babysitters who work under those circumstances but call themselves independent contractors don't understand the relevant law. The exception is babysitters who are actually employees of a service or agency that gets paid by the family and then redirects part of that pay to the sitter.

The parents' obligation to withhold taxes and pay employer payroll taxes on top of that doesn't kick in unless the $1800 annual threshold is met, but that doesn't change the fact that the nanny is an employee. Also, occasional babysitters are required to track and pay federal and state income tax on all their babysitting earnings, whether they meet the $1800 threshold or not. The only tax that an occasional babysitter can lawfully avoid by getting paid less than $1800 per family is FICA.

So, 17:34, your criticism of the parents' desire to pay you on the books is misplaced here, because your tax obligations are the same either way. What you are really saying is that tax-evading babysitters keep more of their income than babysitters who don't evade their tax obligations. That's true as long as you don't get caught, but you may want to avoid calling others "rigid, complicated, and cheap" for not wanting to assist you in tax evasion.

Yeah, I'm sure the IRS is looking out for occasional sitters who aren't reporting income. Such criminals they are

[Anonymous]

Oh come off it. Most families pay their sitters cash. If you are going to have taxes taken out, most sitters won't bother with you. Just a fact. Just like in most other areas of the country it is near impossible to find a family paying their nanny above board. The chances of being caught are slim so most don't give a flying f*ck. You can act all high and mighty about tax evasion if you want to, but we all know you'd do it if the risks didn't outweigh the hassle. You also should face facts that it WILL make it more difficult to find a sitter, especially if your rate doesn't account for the hassle.

[Anonymous]

The fact that OP is wondering about the tax withholding threshold suggests she'll be using this sitter on a steady basis, not just for the occasional Friday or Saturday night. Some might call this type of position a part time nanny job; the semantics don't really matter. It is very standard to withhold and pay taxes for a sitter in that context, and the experienced, professional sitters expect as much. Many even prefer it, because it means they will do better in federal benefits at retirement or in the event of disability.

As for the prior posters who justify their failure to pay taxes on the ground that enforcement is limited and they are unlikely to get caught, you're probably correct. That doesn't make it right, though, and a lot of us have too much at stake to incur even a small risk of getting caught. Some of us also just value personal integrity and don't want to be in a position where we might have to lie in a background check or on a self-certification form relating to a job or professional licensure.

I also have not seen much difference in the rates charged by sitters who get paid on the books and those who don't. $13-20 depending on the sitter's experience and the number of kids seems to be the norm in both cases.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's determined annually not quarterly and I believe the cap is something like $1700 per year.

The cap is quarterly.

I know it is for nannies, but is that true for babysitters as well? Everything I have seen for occasional babysitters says it's an annual cap.

I don't believe the IRS makes the distinction between babysitter and nanny. However I was mistaken. The cap for 2013 is $1800 and is an annual cap. http://www.irs.gov/publications/p926/ar02.html#en_US_2013_publink100086752

That being said, I have always been paid cash by the families I sit for on an occasional basis. If a family that I sit for occasionally wanted to pay taxes on the wages they paid me, I'd expect a higher hourly rate to compensate for the money I'd lose to taxes.

I would trust only the IRS link or legal counsel, not a translated version from a business owner who may have the common conflict of interest.

[Anonymous]

Can't you just call it a "gift" to the babysitter and avoid taxes that way? The limit is $13,000 per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's determined annually not quarterly and I believe the cap is something like $1700 per year.

The cap is quarterly.

I know it is for nannies, but is that true for babysitters as well? Everything I have seen for occasional babysitters says it's an annual cap.

I don't believe the IRS makes the distinction between babysitter and nanny. However I was mistaken. The cap for 2013 is $1800 and is an annual cap. http://www.irs.gov/publications/p926/ar02.html#en_US_2013_publink100086752

That being said, I have always been paid cash by the families I sit for on an occasional basis. If a family that I sit for occasionally wanted to pay taxes on the wages they paid me, I'd expect a higher hourly rate to compensate for the money I'd lose to taxes.

I would trust only the IRS link or legal counsel, not a translated version from a business owner who may have the common conflict of interest.

okay 1) Im a nanny and 2) That is an IRS link to their household employer tax guide 3) Do you even read before you start spouting your crazy??

[Anonymous]

Anonymous wrote:Can't you just call it a "gift" to the babysitter and avoid taxes that way? The limit is $13,000 per year.

If you read up on what can be considered a "gift", you would know that it cannot be given in exchange for any work that has been done. You might as well just pay in cash and forget about doing any taxes on it (as in income taxes), as calling it a "gift" would be tax evasion as well.