Paying nanny partially off books

[Anonymous]

We have interviewed about ten nannies and the few that are willing to be on the books are only willing to do so up to a limit of roughly $20,000 annually to qualify for healthcare services. Have others experienced this? It seems that 90 percent of people pay their nannies completely under the table. I want to help pay into our nannies social security but I understand the fear of losing their access to healthcare. Even if we completely pay for their healthcare, one nanny said it would be a hassle to reapply for Medicaid if we were to fire her. I understand their concerns and it’s the problem since our healthcare system is a mess. What have people done?

[Anonymous]

If your prospective Nanny candidates do not want to lose their healthcare options - then a.) Either you can fully pay for their medical insurance or b.) Pay them partially off-the-books so that they can hold on to what they already have.

It is really sad the things that people need to do these days in order to maintain good health.

[Anonymous]

These are our choices at the moment with one particular nanny candidate. This is our first time hiring a nanny which we are only doing because our daycare is closed due to COVID-19. I wanted to avoid nannies precisely because of these complicated tax issues but now we have no other choice in order to continue working ourselves. Is this a common issues other parents have dealt with?

[Anonymous]

You pay on the books for full salary otherwise you cannot take her full salary on your taxes. Also, it is illegal.

[Anonymous]

I am a nanny of ten years and have never been paid under the table . Always pay on the books !!

[Anonymous]

Yes, but 90-95 percent of families do not formalize arrangements which has created expectations from nannies that they don’t want to be reported.

[Anonymous]

Yeah no. If a nanny wants to be paid cash, move on.

[Anonymous]

I always make sure to state very clearly in my job posting that I will not pay any portion "under the table." Then it's also the first thing I clarify in any interview. This helps a lot. Of course, you also need to pay a living wage. You will not get people applying for a taxable position that doesnt pay enough to live comfortably.

[Anonymous]

Anonymous wrote:I always make sure to state very clearly in my job posting that I will not pay any portion "under the table." Then it's also the first thing I clarify in any interview. This helps a lot. Of course, you also need to pay a living wage. You will not get people applying for a taxable position that doesnt pay enough to live comfortably.

With an on-the-books position, you’re more likely to weed out people who can’t work legally (can’t do I-9) and who are willing to do a contract. State in the position listing:

-on the books
-contract
-must be citizen or legal resident allowed to work
-must have current or obtain infant/child cpr/first aid
-must be willing to have a background check run
-must be able to provide 2-3 references after first interview

[Anonymous]

It's a 2 way street. Nanny of 15 years here and both times I've had to job search in 2005 and 2012, it was nearly impossible to find families willing to pay me fully legally.

[Anonymous]

I've never paid a nanny off the books. It's not legal and it puts you at great risk. For example, if she were to file unemployment and report actual wages instead of only whatever was on the books, guess what? You are now on the hook for back taxes and major penalties.

[Anonymous]

Anonymous wrote:We have interviewed about ten nannies and the few that are willing to be on the books are only willing to do so up to a limit of roughly $20,000 annually to qualify for healthcare services. Have others experienced this? It seems that 90 percent of people pay their nannies completely under the table. I want to help pay into our nannies social security but I understand the fear of losing their access to healthcare. Even if we completely pay for their healthcare, one nanny said it would be a hassle to reapply for Medicaid if we were to fire her. I understand their concerns and it’s the problem since our healthcare system is a mess. What have people done?

Paying off books is illegal and you are foolish for agreeing to do this. I wish this was a felony and people like you and the nanny could get jail time.

[Anonymous]

Its not a big deal to reapply for medicaid.

[Anonymous]

Anonymous wrote:Its not a big deal to reapply for medicaid.

Btdt. You submit all forms online, and you likely never talk to a case worker. If they’re getting snap and/or cash assistance, then it’s a hassle due to more forms, meetings and calls with a case worker, etc.

[Anonymous]

I learned the hard way pay on the books ! Previous posters are correct , if one small thing doesn’t go right , the nanny can file unemployment and YOU the employer will be on the hook . The IRS will audit you and you can be fined heavily or even go to jail .