Paying over-the-table

[Anonymous]

We would like to transition our part time babysitter to more regular hours and start paying her over-the-table. Can you get me started on how to do this?

[Anonymous]

Very easy, I do it myself instead of paying a payroll company.

- IRS site request an employer ID number.
- On SSA (Social security) site set up a BSO account to report wages and taxes withheld. This is where w-2 will be submitted.
-Schedule H on your taxes, you'll pay fed withholding, social security, etc.
- Depending on your state, should have a website to report wages and pay taxes online.

[Anonymous]

I would talk to your sitter first because she may not want to be paid on the books for part-time work.

The majority do not.

It’s weird -
Online it seems almost all Nannies work on the books.
Yet the Nannies I meet at Playgroups, the park, storytimes, etc. all confide in me that their employers pay them in ca$h only.
And if by check, they still do not report it.

I rarely hear a Nanny online admit that she works for ca$h/under the table.
And I have not met one Nanny yet personally that gets taxes taken out or deducts their own.

[Anonymous]

This is a pretty good guide: https://gtm.com/household/resource-center/nanny-tax-guide/. Beyond the tax (don't forget fed and state unemployment taxes) and payroll stuff, you may need to get a workers' comp policy depending on where you live.

[Anonymous]

Anonymous wrote:We would like to transition our part time babysitter to more regular hours and start paying her over-the-table. Can you get me started on how to do this?

Paying under the table is for fools. If she gets caught by State tax office or IRS,(and eventually she will) you get in trouble as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We would like to transition our part time babysitter to more regular hours and start paying her over-the-table. Can you get me started on how to do this?

Paying under the table is for fools. If she gets caught by State tax office or IRS,(and eventually she will) you get in trouble as well.

The penalty is typically that you would have to pay any taxes back.

No jail time or punitive damages are used.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We would like to transition our part time babysitter to more regular hours and start paying her over-the-table. Can you get me started on how to do this?

Paying under the table is for fools. If she gets caught by State tax office or IRS,(and eventually she will) you get in trouble as well.

The penalty is typically that you would have to pay any taxes back.

No jail time or punitive damages are used.

+ interest

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We would like to transition our part time babysitter to more regular hours and start paying her over-the-table. Can you get me started on how to do this?

Paying under the table is for fools. If she gets caught by State tax office or IRS,(and eventually she will) you get in trouble as well.

The penalty is typically that you would have to pay any taxes back.

No jail time or punitive damages are used.

She can sue you and she should because you are cheating her.

[Anonymous]

www.nannypay.com

It's basically a template.

So it's the middle ground between doing it totally on your own or hirng a payroll company. Has been excellent for us. We pay net pay so that she keeps all of her money. We pay her taxes, that's factored into her salary. Hope this helps!

[Anonymous]

My brother had an under the table Nanny, basically she qualifies for a lot of things if she has no income which included medical and food stamp help. When my brother tired to get her to work on the books she said she would have to quit as she can't afford to.

[Anonymous]

Anonymous wrote:My brother had an under the table Nanny, basically she qualifies for a lot of things if she has no income which included medical and food stamp help. When my brother tired to get her to work on the books she said she would have to quit as she can't afford to.

Guess your brother can’t afford to pay a nanny a living wage...

[Anonymous]

Anonymous wrote:

Anonymous wrote:My brother had an under the table Nanny, basically she qualifies for a lot of things if she has no income which included medical and food stamp help. When my brother tired to get her to work on the books she said she would have to quit as she can't afford to.

Guess your brother can’t afford to pay a nanny a living wage...

The good old US taxpayers are getting cheated too.

[Anonymous]

Do the payroll services have you pay the employer's portion of the taxes each pay period, or do you pay a lump sum? I'm trying to figure out how to do them by pay period.

[Anonymous]

Anonymous wrote:Do the payroll services have you pay the employer's portion of the taxes each pay period, or do you pay a lump sum? I'm trying to figure out how to do them by pay period.

Depends...The comprehensive services - like GTM Payroll Services - will take your employer (and employee's) taxes out of your bank account (or charge your credit card) each pay period, hold on to them, and then remit everything quarterly. You can do that yourself with state and federal taxes. Use Form 1040-ES for federal. I'm not sure what the cheap services do.

[Anonymous]

What exactly do I need to do in DC to set everything up myself? I made an account on the DOES Employer Self Service Portal, which gave my my DC employer number. Do I need to add any details about my nanny here now, or not until I file? I don't understand how to use the ESSP.