So confused re: Nanny Pay! Please help!

[Anonymous]

We are new to the nanny field and a bit overwhelmed by the process!

We are looking to hire an after-school nanny for approximately 2.5 - 3 hours a day, M-F. Do we need to pay taxes on this part-time work? Or can we just pay the nanny directly at a straight hourly rate?

Any great tips on how to find a nanny?

Sorry to be so clueless and TIA!

[Anonymous]

What hourly rate range do you have in mind?
What would be the quarterly gross?
Perhaps do some searches here.

[Anonymous]

Most people just pay cash, for after school nannies you won't find many people willing to let you withhold taxes. If you want all possible applicants offer to do it which ever way nanny prefers, if you want the most with only one choice go with just paying cash, no taxes.

The best nannies seem to be on care.com, but sitter city is also an option but it only has 10% or so of what is on care.com

GL

[Anonymous]

Anonymous wrote:Most people just pay cash, for after school nannies you won't find many people willing to let you withhold taxes. If you want all possible applicants offer to do it which ever way nanny prefers, if you want the most with only one choice go with just paying cash, no taxes.

The best nannies seem to be on care.com, but sitter city is also an option but it only has 10% or so of what is on care.com

GL

Maybe "the best nannies are on care.com", because that's where the best families are?

You're such a troll!

[Anonymous]

The simple answer is if you pay her $1900 or more in the year, you owe the taxes. If you don't deduct her taxes you owe those too.

If she work 12.5 hours a week at $15 an hour, and she works more than 10 weeks, bingo you hit the number.

Say she starts in September and works 16 weeks this year. You would pay her $3000. Your share of FICA is $230, so is hers. If you don't deduct hers (you don't have to) you would just pay both or $460 with your 1040 return. You also have some unemployment insurance, but that is probably less than $100.

[Anonymous]

Anonymous wrote:
The simple answer is if you pay her $1900 or more in the year, you owe the taxes. If you don't deduct her taxes you owe those too.

If she work 12.5 hours a week at $15 an hour, and she works more than 10 weeks, bingo you hit the number.

Say she starts in September and works 16 weeks this year. You would pay her $3000. Your share of FICA is $230, so is hers. If you don't deduct hers (you don't have to) you would just pay both or $460 with your 1040 return. You also have some unemployment insurance, but that is probably less than $100.

This.

[Anonymous]

I would ask the nanny what she prefers and comply with her wishes.

For such a small amount of pay, it wouldn't make any sense or cents to withhold deductions. I mean, if she claimed unemployment later on, she would be richer living off of food stamps.

[Anonymous]

Anonymous wrote:I would ask the nanny what she prefers and comply with her wishes.

For such a small amount of pay, it wouldn't make any sense or cents to withhold deductions. I mean, if she claimed unemployment later on, she would be richer living off of food stamps.

Unless she works more than one job, which lots of afterschool nannies do.

[Anonymous]

Anonymous wrote:
The simple answer is if you pay her $1900 or more in the year, you owe the taxes. If you don't deduct her taxes you owe those too.

If she work 12.5 hours a week at $15 an hour, and she works more than 10 weeks, bingo you hit the number.

Say she starts in September and works 16 weeks this year. You would pay her $3000. Your share of FICA is $230, so is hers. If you don't deduct hers (you don't have to) you would just pay both or $460 with your 1040 return. You also have some unemployment insurance, but that is probably less than $100.

Thank you so much! We have done daycare up to this point and I was feeling truly overwhelmed. I really appreciate this helpful advice!