Contract says family will provide W-2 but employer gave me W-9 to fill

[Anonymous]

I am about to start a part-time nanny job (20h/week), and my employer gave me the contract stating they will give me W-2 at the end of the year and withhold taxes as instructed on W-4 form. However, they only gave me a W-9 form. Does anybody know if it makes sense? Because I am confused.

[Anonymous]

W-9 is for independent contractors. So either they are confused (and should’ve given you a w-4 to fill out), or they are saying you are an independent contractor - not their employee. If you fill out the w-9, they’ll send you a 1099 in January 2024 and they’ll report your compensation to the irs as an independent contractor compensation and you’ll have to file with the irs as “self employed.” This is usually disfavored because you’ll have to pay the self employment tax. If you were a w-2 employee, they’d have to pay some taxes (fica, Medicare I think?) on your behalf.

Since you’re part time I think there’s some wiggle room to argue you’re an independent contractor. If you were a full time nanny the law is pretty clear you’re supposed to be a w-2 employee.

This is my lay understanding as a nanny employer, I’m not an expert.

[Anonymous]

Thank you so much!

[Anonymous]

Another not legal advisor here haha. I want to say there are regulations about nannies and employment status that you should look into as well. I think there was movement at some point to legislatively prevent families from requiring crazy hours for less than minimum wage (the actual equivalent of indentured servitude, not getting paid less than $30/hour and having to do housework related to the kids).

[Anonymous]

Don’t do it!! You’re a household employee not an independent contractor. And you will end up owing so much!

[Anonymous]

if you deduct all expenses related to your employment, then it might be the same amount in taxes

[Anonymous]

Part tome or full time doesnt matter. Any household employee getting over $2600 in fy23 needs to be an hourly w2 employee with withholdings, state reporting quarterly by employer and employer taxes and unemployment insurance. Your employer is trying to get out of doing work for withholding etc.

[Anonymous]

Please contact a tax accountant.

[Anonymous]

Don't rely on strangers on internet for tax info

[Anonymous]

Complete and submit a W-4 form instead of a W-9. The W-9 is for independent contractors. It's possible they are confused, or they are trying to make you an independent contractor because it's easier and cheaper for them.

Don't do it -- the law is pretty clear that household workers are employees, not ICs. There are significant downsides to the IC/employee who agrees to this (you pay 100% of the taxes yourself instead of some coming out of the employer's pocket; you don't get workers' comp; you may have trouble collecting unemployment, etc.).

[Anonymous]

Wow they already are breaking their contract ! Run !

[Anonymous]

Anonymous wrote:Part tome or full time doesnt matter. Any household employee getting over $2600 in fy23 needs to be an hourly w2 employee with withholdings, state reporting quarterly by employer and employer taxes and unemployment insurance. Your employer is trying to get out of doing work for withholding etc.

+1
Used to have a nanny and for sure there was no flexibility in this. Nannies are employees not contractors by definition.

[Anonymous]

Anonymous wrote:W-9 is for independent contractors. So either they are confused (and should’ve given you a w-4 to fill out), or they are saying you are an independent contractor - not their employee. If you fill out the w-9, they’ll send you a 1099 in January 2024 and they’ll report your compensation to the irs as an independent contractor compensation and you’ll have to file with the irs as “self employed.” This is usually disfavored because you’ll have to pay the self employment tax. If you were a w-2 employee, they’d have to pay some taxes (fica, Medicare I think?) on your behalf.

Since you’re part time I think there’s some wiggle room to argue you’re an independent contractor. If you were a full time nanny the law is pretty clear you’re supposed to be a w-2 employee.

This is my lay understanding as a nanny employer, I’m not an expert.

There is no wiggle room for domestic emoyrrd. She is paid on the books, tax and fica taken out by employers. And lsud OT for ALL hours over 40. No way can you mistake a W-2 for a 1099.

OP, this is a huge red flag. Get everything in writing and signed before agreeing to take this job.

[Anonymous]

I've been audited twice, and so were the employers who tried to give me a 1099. I got more money back, they got hefty fines.

[Anonymous]

Anonymous wrote:

Anonymous wrote:W-9 is for independent contractors. So either they are confused (and should’ve given you a w-4 to fill out), or they are saying you are an independent contractor - not their employee. If you fill out the w-9, they’ll send you a 1099 in January 2024 and they’ll report your compensation to the irs as an independent contractor compensation and you’ll have to file with the irs as “self employed.” This is usually disfavored because you’ll have to pay the self employment tax. If you were a w-2 employee, they’d have to pay some taxes (fica, Medicare I think?) on your behalf.

Since you’re part time I think there’s some wiggle room to argue you’re an independent contractor. If you were a full time nanny the law is pretty clear you’re supposed to be a w-2 employee.

This is my lay understanding as a nanny employer, I’m not an expert.

There is no wiggle room for domestic emoyrrd. She is paid on the books, tax and fica taken out by employers. And lsud OT for ALL hours over 40. No way can you mistake a W-2 for a 1099.

OP, this is a huge red flag. Get everything in writing and signed before agreeing to take this job.

OP stared her contract says W-2.