Give Nanny 1099? Is this legal?
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Anonymous
| My employer wants to give me a 1099, is this legal? I work part time in their home as a nanny and I get paid $15/hour and work 12-15 hours a week. We don't have a contract and she didn't withhold in 2012. Does this mean that I now have to pay all of the SS/medicare? I was expecting to get a W-2 not have to pay upwards of $500 in taxes just so they could get a tax credit. |
Anonymous
| No, it's not legal. They need to give you a W-2 or you can file without one. They will be on the hook for taxes, not you. However, I don't see why you expected a w-2 when your taxes weren't being withheld. |
Anonymous
| They should be reported if they don't pay up. |
Anonymous
|
There's no reporting involved. Just file your taxes with the missing W-2 and the parents will be on the hook for the money. Start looking for another job, as I'm sure you'll be out of this one. But that may not be a bad thing if you want to be paid legally and the parents don't want to.
I'm still a bit cynical about a nanny who "expected to get a W-2" when nothing was being withheld from her paycheck. (In the absense of a net pay agreement) I pay legally. But this whole collusion to pay under the table with a game of "gotcha" at the end leaves a bad taste in my mouth. It's just as poor on both sides. |
Anonymous
| Wish something would get done about this rampant fraud. |
Anonymous
|
They are responsible for all of the SS/Med if they didn't withhold your half. You are responsible for federal and state income taxes.
A 1099 is not acceptable, according to the IRS. Call the IRS and ask them how to file as a W-2 employee with a 1099. |
Anonymous
| I have the same question. Employer gave me a 1099 but is paying 7.65% of my taxable wages. This seems like the FICA half which would mean that I would pay the other 7.65% so the state and federal taxes. So he is treating the 1099 like a W-2. How would I file taxes then? Do I treat it also as a w-2? Does the 1099 show that the employer is paying half of the taxes? |
Anonymous
| Sorry PP here 13:51, he would pay 7.65% of SS/Medicare then I would pay 7.65% of the FICA plus federal and state taxes. |
Anonymous
|
22:16 here. Did your employer withhold at the time of paycheck? If no, it sounds like they are trying to pay legally, if somewhat confused, and are offering to cover half of FICA tax that a 1099 employee would be responsible for. In other words, not quite right, but they are trying not to screw you. I'd ask them to give you a w-2 instead. If you want to continue in good faith, you would then return the half of
FICA directly to them and they would pay it to the IRS on their regular tax bill. You are completely legally entitled to file a W-2 and just leave then responsible for all the FICA. But if they are trying to do right by you, that doesn't seem quite right. |
Anonymous
|
No, you need to ask for a W2. There is no place on a 1099 for FICA withholdings.
He is responsible for the 15+%. Half of that should have been withheld from your check. If it wasn't, he's liable for all of it. |
Anonymous
Anyone can confidentially report someone who is engaging in tax fraud. |
Anonymous
|
It's not fraud. The nanny just needs to file. The IRS will manage the rest.
Under reporting her wages would be fraud. |
Anonymous
Don't be so sure. Treating an employee as a contractor (i.e., not withholding employment taxes and issuing a 1099 rather than a W-2) so that the employer doesn't have to pay their share of employment taxes is illegal. |
Anonymous
| I'm not saying it's legal. It just doesn't need to be confidentially reported. Just file it as it should be filed and let the IRS deal with it. |
Anonymous
I was referring to other people, like the PP, who are disgusted with OTHER people not reporting their nanny's income legally. If you know someone is committing fraud, like paying under the table or classifying their nanny as an independent contractor, you can confidentially report them to the state or IRS. |