So you're arguing that an IC doesn't in fact lose 2 times as much money to SS/Med taxes? Or are you attempting to say that double the loss makes no difference since they charge more to "make up for" the extra tax hit? Either way, you are missing the basic math facts, which would tend to make you the uninformed person here. No matter HOW MUCH you make, if you have to pay double taxes, you are losing out. |
You can get reliable details from official websites, like IRS.gov |
I am going! |
Agree with Nannydeb. I mean sure, the nanny can double her rate so she can be an IC and have the higher rate make up for the extra taxes...but I imagine it is difficult for those nannies to find jobs if they are setting their wages at $40 an hour for $20 |
You don't need to imagine anything, as many of them are doing very well for themselves. |
You're a looney tune. "Many" of them?? How many stupid nannies are running around calling themselves ICs charging inflated rates, besides you? What exactly is the benefit to classifying yourself this way? The government essentially charges you a self employment penalty. |
Ask your CPA to educate you a bit. You'll be a new person. |
NannyDeb is correct. |
IRS Publication 926. Very clear that nannies are household employees, not independent contractors. |
You still haven't explained the benefits. Speaking in vague terms doesn't help get your point across. Just makes you sound like a looney tune. |
This is very much a grey area of the law. A lot of Newborn Care Specialists do file as Independent Contractors, but it's not a black and white issue. If a family is worried or want to make sure they are 100% correct, then they should pay the NCS as an employee.
As for the training. I've taken more than one course that was "certified" by the NCSA and they were both junk. One was a Newborn Care course and the other was a sleep training course. Now that I know better and have learned more, I would reccomend the training through the Alexandria School. She has a 6 week online course starting in the next week or so and it's only $300, which is cheap compared to a lot of the NCSA courses. |
Can you be specific as to which course you took that was "approved" that you though were junk? I really want to take a NCS training course and would like to make an informed decision. I am not sold on the Alexandria School course either. It is $580 for the Basic and Advanced course. I also did one of their seminars and the speaker was talking about baby wearing and did not even know what some of the most popular baby carriers were!! Not really the kind of education I am looking for. Has anyone taken a course from The Newborn Care Training Academy? They are newer so I am wanting feedback on their program if anyone has it. |
I looked at the Alexandria School and it's actually almost $600 for the entire course :-/ |
This is correct about IC nannies. There aren't many of them, but they'll let you know if they're established as such. |