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Reply to "Nanny wants OT pay in cash without withholdings"
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[quote=CPPatGTM]In response to your questions - 1) All salary needs to be reported and payroll taxes need to be withheld, correct? Yes, this is correct. Cash bonuses must also be included in her income and taxed. You do have the option of withholding just social security and medicare tax and not her income taxes which would allow her to take home more money at the time the bonus is given. 2) Is our nanny's compensation par with the market in NW DC? I don't know the specifics of how your compensation package compares to others in your area however, I do know that he compensation package you offer is a good one. [/quote]
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