What Happens If Your Family Compensates You For Health Insurance.......

[Anonymous]

If you are not using the money for insurance, then it is taxable income.

[Anonymous]

OP sounds like white trash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think you understand my question. Is there any type of penalty if a lump sum payout is given to me on the understanding that is used for health insurance and it is NOT used for health insurance?

Yes, it’s fraud...

Fraud how? How would it be traced?

This is income pulled out without being taxed. It’s still reported to the IRS. If the nanny gets audited, yes, it’s fraud...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To the PP Above: ^^^^

Basically OP will not disclose the fact to this new family that she already has health insurance/coverage which would be a lie in & in itself.
Then she would again lie by saying she will use any extra cash they give her for health insurance when in fact she will not.

Personally, I would not want a person w/so little integrity watching my child(ren) + even being in my home.

Your bosses would be writing it off on their taxes and you can get in trouble if they require proof that you are insured under them.

OP here and that's why I was asking in the first place. And as for integrity it don't pay the rent but if it makes you an insufferable snob rootie kazootie for you honey.

Not PP, but the desire to have a person with some integrity watch one's children is fairly widespread. Nor does it make PP an insufferable snob. Don't cheat. Be a role model for those children you are charged with caring for.

To the helpful posters, thank you for your info and insight. For the sanctimonious holier than thou posters, I've been caring for children for many many years and my financial compensation and all the details thereof rarely come up in conversation with the under five set. The comment about integrity from a PP was unnecessary and annoying. I mean I asked in the first place right? That's integrity!

You never discuss lying or cheating with the under 5 set?!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:But you don't use the money for health insurance. New hiring family is offering two different salaries; one with, one without. However, the health insurance option is more money. I'm covered by my husband's plan. Can I get in trouble if I do this? Tax wise it would probably be better for the employer as well right? Please no moralizing, just straight answers if you know.

Lawyer here. You are committing FRAUD.

Saying you are a lawyer is meaningless as it may not be your area of law. It is not illegal and common with bigger companies. My husband in the majority of companies he works for is offered either health care or a cash amount if we can prove we have outside coverage, which we do. Its particularly common for military retirees who get tricare. Don't speak on something you don't know about. He has either gotten it broken up in each pay check or a lump sum.

We understand that situation, it’s what OP was offered. But what OP wants to do is different.

OP said they would provide one salary with health insurance or a slightly different salary without. The salary with the health insurance premium is a little higher, which is why she wanted to know if she’d get caught if she just pocketed the premium. It involves lying to her employers, tax fraud and is a very, very bad idea!

[Anonymous]

OP, in general, it makes the most financial sense to take the largest base salary you can. Raises, bonuses, and overtime are all based on the base rate.

In this case, when you thought there might be extra tax-free spending money, I can see the temptation, but if that were possible, then they wouldn't have asked: they'd have just given you the money, told you it was for health care and that you had x number of sick days (because they expect you to take care of your health and go to the doctor when necessary), but then you could do what you like.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think you understand my question. Is there any type of penalty if a lump sum payout is given to me on the understanding that is used for health insurance and it is NOT used for health insurance?

Yes, it’s fraud...

Fraud how? How would it be traced?

Just because something can't be traced doesn't make it ok

[Anonymous]

Your employers would also receive tax benefits for contributions to your health insurance.

Could you take the money and put it in a HSA?