What's so bad about paying under the table?

[Anonymous]

If the nanny asked for it? It seems to me that it's done far more commonly than discussed on this board. Who pays under the table and who gets paid under the table?

[Anonymous]

I'm payed under the table. In all honesty, if I had to pay taxes at the rate I'm payed now, I would not be able to live off of it. The cost of living is so high, and my boss also doesn't want to go through the hassle of paying me above the table. Agencies in my area don't require nannies to be paid legally, unfortunately, so we really don't have much of a voice here. I actually don't know any nannies in my city that are paid legally. It's a shame because it could cause problems in the future, like no unemployment, no retirement, or being responsible for back taxes. The way I think of it, is I have to deal with it for one more year befor

[Anonymous]

21:46 sorry cut me off. I have to deal with it for one more year before me and my husband move to a bigger city for his job, and then it will be much easier for me to find a legal paying nanny family.

[Anonymous]

it's illegal. That should really be all you need to think 'hmm. maybe I shouldn't do this.'

[Anonymous]

Nanny saying she couldn't live if she paid taxes.. How do you live now? You don't have proof of income. Good luck getting a loan, buying or renting a home, buying a car.. Unless you pay upfront you are very unlikely to be able to do most things along those lines without a consigner. I know bc I used to not pay taxes on bartending and as soon as I realized the mess I was making for myself I started paying.

[Anonymous]

Illegal schmlegal. If a nanny ASKS to be paid under the table, what is the harm if no one will know?

[Anonymous]

Anonymous wrote:Nanny saying she couldn't live if she paid taxes.. How do you live now? You don't have proof of income. Good luck getting a loan, buying or renting a home, buying a car.. Unless you pay upfront you are very unlikely to be able to do most things along those lines without a consigner. I know bc I used to not pay taxes on bartending and as soon as I realized the mess I was making for myself I started paying.

not the nanny, but she said that they are moving next year for her husband's job. so I guess he works and has a legal job and she is officially a SAHW, but they do have a family income. she increases that income with off the book salary as a nanny. the truth is that we all would have more money if we did not pay income tax and all other taxes. the nanny should pay like everybody else. if she does not make much, so will pay very little or even nothing.

[Anonymous]

Anonymous wrote:Illegal schmlegal. If a nanny ASKS to be paid under the table, what is the harm if no one will know?

Ask Zoe Baird. If your nanny does not have a valuid DL, is this also all right?

[Anonymous]

You're probably being underpaid anyway. If you were being taxed, parents would need to pay more, too. They lose.

Other than the fact you can get in trouble, it's not a huge deal. No tax refund check and no money towards your future...unless you set up accounts elsewhere.

[Anonymous]

Other than being a good citizen, and doing the right thing, there are several practical reasons to be paid legally, especially if the employment is full time. Nannies paid "under the table" often don't have the documents they need for loans, etc., cannot collect unemployment insurance and are not eligible for coverage on their employer's workers' compensation insurance.

[Anonymous]

we pay under the table because nanny requested it. Win-win.

[webbkathy]

Why a nanny wants to be paid legally: http://www.4nannytaxes.com/index.cfm/resources/10-tips-series/pay-nanny-legally/

Employer risks: http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/penalties-for-non-compliance/

I of course have a commercial interest in the subject, in the mode of full disclosure

[Anonymous]

The people who say a nanny can't collect unemployment if paid under the table are woefully uninformed. I was paid under the table and win an unemployment claim. The employers have to pay back taxes.

[Anonymous]

No, you didn't, 13:52, but nice try.

[Anonymous]

Anonymous wrote:The people who say a nanny can't collect unemployment if paid under the table are woefully uninformed. I was paid under the table and win an unemployment claim. The employers have to pay back taxes.

You would have had to pay back taxes as well unless your employers had to pay your share of taxes and penalties. Nannies can submit unemployment claims even if they are paid in cash, but back taxes will have to be paid and penalties usually incur.

It's so much easier to be put on payroll. The benefits far outweigh the drawbacks. The legal aspect goes without saying.