Anonymous wrote:

nannydebsays wrote:Yes, 09:46, but since 85 - 90% of parents refuse to pay on the books or are willing to hire a nanny who refuses to be paid on the books, the greater supply theory doesn't really fit here.

Unless, of course, the Federal Government finally puts some teeth in the household employer laws WRT the IRS. Parents (or nannies) facing jail time for paying illegally would probably up the number of jobs only "legal" workers could take.

Where are you getting your figures?

Anonymous wrote:

nannydebsays wrote:Yes, 09:46, but since 85 - 90% of parents refuse to pay on the books or are willing to hire a nanny who refuses to be paid on the books, the greater supply theory doesn't really fit here.

Unless, of course, the Federal Government finally puts some teeth in the household employer laws WRT the IRS. Parents (or nannies) facing jail time for paying illegally would probably up the number of jobs only "legal" workers could take.

Where are you getting your figures?

nannydebsays wrote:

Anonymous wrote:

nannydebsays wrote:Yes, 09:46, but since 85 - 90% of parents refuse to pay on the books or are willing to hire a nanny who refuses to be paid on the books, the greater supply theory doesn't really fit here.

Unless, of course, the Federal Government finally puts some teeth in the household employer laws WRT the IRS. Parents (or nannies) facing jail time for paying illegally would probably up the number of jobs only "legal" workers could take.

Where are you getting your figures?

I'm quoting nanny tax business owners. I'm sure more people pay legally if they are at risk of losing their jobs/professional standing if they hire illegally, but DC is not the norm.

Anonymous wrote:

nannydebsays wrote:

Anonymous wrote:

nannydebsays wrote:Yes, 09:46, but since 85 - 90% of parents refuse to pay on the books or are willing to hire a nanny who refuses to be paid on the books, the greater supply theory doesn't really fit here.

Unless, of course, the Federal Government finally puts some teeth in the household employer laws WRT the IRS. Parents (or nannies) facing jail time for paying illegally would probably up the number of jobs only "legal" workers could take.

Where are you getting your figures?

I'm quoting nanny tax business owners. I'm sure more people pay legally if they are at risk of losing their jobs/professional standing if they hire illegally, but DC is not the norm.

Maybe just a bit self-serving of them?
No one really has any idea how many, or what percentage of, parents are evading taxes.

Anonymous wrote:I don't think the nannies understand economics or data. The general rise in wages for individuals moving from illegal to legal status is driven by their ability to apply for different types of jobs.

There will be a greater supply of nannies eligible to apply for jobs requiring a legal nanny. The rates for jobs that want or must pay above the table will go down. There may be a smaller supply go illegal nannies who have no other work options, this supply may go down so the jobs that offer really crazy below minimum wage rates would go up.

There would be a negative impact on the higher paying jobs and a positive impact on the bottom paying jobs. This is better on average for nannies and employers as employers paying legally would have more affordable childcare options and more nannies would be able to apply for legal jobs.

nannydebsays wrote:No, no one knows anything more than an estimate of how few parents pay "nanny taxes". But I would bet an anonymous survey would reveal that less than 30% of parents do pay legally.

And just to be clear, it's not all employers fault - nannies out there who avoid taxes are a huge issue as well.

Anecdotally, in a recent local survey, 50% of respondents said they were paid off the books, most because the parents chose that option, some because the nannies themselves made that choice.

Also anecdotally, last time I job searched, more than 80% of the parents I contacted either had no idea why I would want to be paid on the books, or downright refused to do so.

Anonymous wrote:

nannydebsays wrote:No, no one knows anything more than an estimate of how few parents pay "nanny taxes". But I would bet an anonymous survey would reveal that less than 30% of parents do pay legally.

And just to be clear, it's not all employers fault - nannies out there who avoid taxes are a huge issue as well.

Anecdotally, in a recent local survey, 50% of respondents said they were paid off the books, most because the parents chose that option, some because the nannies themselves made that choice.

Also anecdotally, last time I job searched, more than 80% of the parents I contacted either had no idea why I would want to be paid on the books, or downright refused to do so.

You're forgetting that's assumed that the employer, not the employee, who has the higher hand, when it comes to paying taxes.

Anonymous wrote:Incidentally, this will be a HUGE issue in immigration reform when those newly-legal citizens want to collect social security. In many cases they will have paid no taxes on their income (even people here illegally can have employment taxes paid on them), because either their employer did not do so, or they themselves did not want the employer to do so.

Anonymous wrote:Every time we hear of a tax issue, it's employer of the domestic employee, who gets fined.

Anonymous wrote:How do nannies and/or families who hire them feel about the immigration reform act. We have always hired a legal nanny, and suddenly the nanny market will have many more legal nannies permitted to work in the country. Nannies, do you worry about increased competition? Families who currently pay under the table to illegal nannies, how would you feel if your longtime nanny is here legally?