Taxes, do I have to pay nanny taxes? RSS feed

Anonymous
Anonymous wrote:If I indicate in the contract that nanny has to pay her own taxes is that sufficient in avoiding problems later or do I have to pay nanny taxes? What is the law on that in DC?


No. You would not only be breaking the law, but you would be screwing the nanny into paying YOUR share of the employer taxes. How, in good conscience, could you do that to someone who is 1) making $15/hour and 2) taking care of your children?
webbkathy

Member Offline
OP a nanny is your employee and if you pay her $500 or more in a calendar quarter you must report her wages and pay DC unemployment tax.

There is a discussion here: http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/nanny-employee-or-contractor/

Kathy Webb
HomeWork Solutions/4nannytaxes.com

Kathy Webb
HomeWork Solutions Inc.

http://www.HomeWorkSolutions.com
800.626.4829

Simplifying Nanny Tax Compliance Since 1993
Anonymous
Anonymous wrote:
Anonymous wrote:A nanny is definitely NOT an independent contractor. Calling her that doesn't make it so, sorry.

http://blog.nettimesolutions.com/employers-misclassifying-independent-contractors/?goback=.gde_39688_member_257764227.gna_39688

Many of the newborn nannies are ICs. That's a fact.

They have many clients a year.
webbkathy

Member Offline
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:A nanny is definitely NOT an independent contractor. Calling her that doesn't make it so, sorry.

http://blog.nettimesolutions.com/employers-misclassifying-independent-contractors/?goback=.gde_39688_member_257764227.gna_39688

Many of the newborn nannies are ICs. That's a fact.

They have many clients a year.


I would add that NCS have other accoutrements of a business too. They present the family with a contract typically, set their own rates, contract for a specific duration of time, etc. Many of these specialists have business cards, maintain their own websites, and often work in informal networks with other NCS where if one is booked the hand the job over to another NCS to pursue the opportunity. They also typically collect a retainer or deposit for the family to reserve the time which is non-refundable. Some families handle this conservatively and treat the NCS as an employee, yet I believe MOST situations a good case could be made for IC status if pressed. The IRS is the ultimate arbitrator - not the family or the NCS.

This is a very different situation from a regular nanny - even a summer nanny.

Kathy Webb
HomeWork Solutions/4nannytaxes.com
Anonymous
IRS website explaining the difference between an IC and an employee.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed)-or-Employee%3F

You will be on the hook for both halves of FICA if it is not deducted from her check.
Anonymous
Anonymous wrote:
Anonymous wrote:I was thinking that I could consider nanny as an independent contractor and therefore she would pay her own taxes.


The law is very clear about nannies being household employees NOT independent contractors. It sounds like you're looking to avoid paying your fair share of employer taxes. Many nannies (who do things the legal way) see this as a red flag.


This isn't necessarily true - if the nanny is not working FT, the argument is much more in favor of independent contractor than FT employee. I am an employment lawyer.
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I was thinking that I could consider nanny as an independent contractor and therefore she would pay her own taxes.


The law is very clear about nannies being household employees NOT independent contractors. It sounds like you're looking to avoid paying your fair share of employer taxes. Many nannies (who do things the legal way) see this as a red flag.


This isn't necessarily true - if the nanny is not working FT, the argument is much more in favor of independent contractor than FT employee. I am an employment lawyer.


That simply isn't true.
nannydebsays

Member Offline
The test isn't time worked each week, the test is, does the employer MANAGE the person, does the employer provide all the tools needed to do the job, can the employee make her own schedule and set her own hours?
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I was thinking that I could consider nanny as an independent contractor and therefore she would pay her own taxes.


The law is very clear about nannies being household employees NOT independent contractors. It sounds like you're looking to avoid paying your fair share of employer taxes. Many nannies (who do things the legal way) see this as a red flag.


This isn't necessarily true - if the nanny is not working FT, the argument is much more in favor of independent contractor than FT employee. I am an employment lawyer.



Apparently a pretty bad one.
Anonymous
My sitter is an independent contractor, but she controls the schedule. If she doesn't want to work, she just doesn't come in. Plus, she tells me what hours she wants or doesn't want. The schedule is never regular or set...it just depends on her. Of course, this has made for some very awkward sitting dilemmas for me....
Anonymous
OP what's ur contact info...I'm a nanny and do not mind being paid under the table.
Anonymous
Anonymous wrote:My sitter is an independent contractor, but she controls the schedule. If she doesn't want to work, she just doesn't come in. Plus, she tells me what hours she wants or doesn't want. The schedule is never regular or set...it just depends on her. Of course, this has made for some very awkward sitting dilemmas for me....



Um, no. She isn't an IC. No matter how much you want it to be true.

She controls nothing. You just have no concept of how to hire a competent worker.
Anonymous
Anonymous wrote:
Anonymous wrote:My sitter is an independent contractor, but she controls the schedule. If she doesn't want to work, she just doesn't come in. Plus, she tells me what hours she wants or doesn't want. The schedule is never regular or set...it just depends on her. Of course, this has made for some very awkward sitting dilemmas for me....



Um, no. She isn't an IC. No matter how much you want it to be true.

She controls nothing. You just have no concept of how to hire a competent worker.

Lots of IC nannies are very competent workers.
Anonymous
Anonymous wrote:My sitter is an independent contractor, but she controls the schedule. If she doesn't want to work, she just doesn't come in. Plus, she tells me what hours she wants or doesn't want. The schedule is never regular or set...it just depends on her. Of course, this has made for some very awkward sitting dilemmas for me....

Some IC sitters and nannies may also control how they perform their work. If you don't like it, it's not for you.
Anonymous
Anonymous wrote:No. Not really. No one here will support that, even though certain nannies are legally ICs.


Actually most nannies ask for cash pay. Here and in NYC.
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