For those who pay their nanny through a payroll system
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Anonymous
| Do you pay a bonus through payroll or just give cash? |
Anonymous
| no just give cash... |
Anonymous
| Cash. The legal way is through your usual payroll method, taking out taxes on the bonus. I am comfortable with the level of illegality in a cash bonus. |
Anonymous
| Cash |
Anonymous
| I give cash, report it to the payroll company and have them gross it up in the next check (ie, charge me all the taxes). I figure, I pay so much to be legal, not worth it to stop! |
Anonymous
| We only used payroll for the first year bonus. Later on we learned from friends that its typically a cash bonus because the nanny could lose up to a third of the amount to taxes. The bonus is the only cash payment we do. Everything else gets put through payroll. |
Anonymous
Yes, this is exactly our approach also. |
Anonymous
| Anal MB here - through payroll. Why do it 98% legally when it is so easy to do it 100%? |
Anonymous
Sure it's easy. But then the bonus gets taxed and it's annoying that I'm generous but the nanny ends up with 2/3 of that instead of the full amount. |
Anonymous
| The withholding may be high but there is no difference in the taxation rate so it will even out when she files. |