Taxes issue (advice needed)

[Anonymous]

Let me start off by stating that I know I got the sh*t end of the stick when I took this job. I knew it when I signed the contract. I'm in my early 20s and an online college student. I became an "online" student in October when I accepted this job in order to accomodate the hours. Prior to that I was just a regular student at the same liberal arts school. I took the job because I really needed one and I needed one fast. Please try not to bash me, I know it was stupid. And I was experienced enough as a nanny to know that from the beginning. My bad.

I agreed to work 50/hrs a week at a rate of 6/hr and in exchange had room and board in the large garage apartment behind the house. My charges are twins and I started working with them when they were 2 days old. I started covering the night shifts 9pm-7am when they were born and then in January transitioned to days 8am-6pm. We agreed to do all of this under the table (and that actually is documented in the contract). I have been unhappy (as you can imagine) with the work load and lack of pay for sometime now.

I was out of town last week and out of the blue my boss asks for my social security number (which she already had via the contract) so she could file taxes. I talked to her on the phone and told her that this was a huge problem for me. We agreed to discuss on my first day back to work and that was today. She came home at lunch time and told me that she already filed taxes for 2013 and wrote me down as a child care employee. However, her accountant told her that the amount wasn't high enough to require her to file a 1099 (which just isn't true) and that it wouldn't impact me in anyway, which also isn't true. I'm really upset because I would have been willing to do things on the books from the get go.....as long as she raised the pay a little.

She also pulled the figure of 1,000/month for this apartment out of her you know what and is factoring that into my income. I'm receiving 300/cash a week and she is taxing me a ridiculous amount (for my area) for this apartment. Also, I'm not even being paid minimum wage even though I've worked 10 hours overtime each week since the start of emplyoment! The legalities of it all have my head spinning and I thought maybe someone here could help me sort this through. No where in the contract does it mention that the apartment is worth 1,000/mo or that it's worth any dollar amount for that matter!

Needless to say I'm leaving this job as soon as I can. I actually already had a plan in motion - I just will have to expedite it. But in the meantime, do I have any recourse? She has to file a 1099, doesn't she? Does she have to pay at least minimum wage on those overtime hours? I don't think it's fair for her to only play by the rules where it's convenient for her.

Please excuse any spelling errors. I'm upset.

[Anonymous]

PS - She has not paid anything to my social security or unemployment, to my knowledge.

[Anonymous]

Your only real option is to call the labor department in your state or the IRS and try to set an investigation in motion. You can't force someone else to do anything, no matter how right you are.

Yes, your contract means that you are also at fault for tax fraud, but you will also be seen as the less capable, wronged party, so I wouldn't worry about getting in legal trouble.

My guess is that either they will determine that you both entered into an illegal contract, and so owe taxes but you get no d tea money, or they will come down hard on your employer for abuse.

[Anonymous]

d tea? Supposed to be "extra" money.

[Anonymous]

You are at fault, but she's more so. Her accountant should have told her that nannies are not 1099 independent contractors, but W-2 employees, so she should have been withholding taxes and paying the employer share all along. You should call the state labor department and the IRS, and be prepared to pay the taxes you owe and possibly some fines or interest.

[Anonymous]

If you agreed to work under the table, OP, you are both at fault. Call the IRS and straighten out your tax situation. In the future, don't agree to work illegally.

[Anonymous]

Sounds like your employer figured out a way to save a few bucks and not be stuck with a IRS situation if their job requires background investigations. They were dumb enough to write a contract to conduct an illegal activity.

I would try to work out with your employer a way to share the expenses of taxes since it will likely place a high burden on you and little to nothing for them.

[Anonymous]

Anonymous wrote:Sounds like your employer figured out a way to save a few bucks and not be stuck with a IRS situation if their job requires background investigations. They were dumb enough to write a contract to conduct an illegal activity.

I would try to work out with your employer a way to share the expenses of taxes since it will likely place a high burden on you and little to nothing for them.

This is the dumbest post today.

[Anonymous]

Don't tell her you're about to report her. Get another job first.

[Anonymous]

It's time to pack your bags and get out of there. This is a deal breaker, things will only get more difficult. Now you can go to an agency tell them your story (they have heard it before) and make your next job legal. Deal with the taxes and take this a a valuable life lesson!

[Anonymous]

she has to pay you all hours worked. Overtime is only a state by state case depends on where you are. You are required to be paid minimum wage also. If you are a live in they cannot deduct money from your check though for the apartment.