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Reply to "Tax question: our former full-time nanny is now our once-a-week housecleaner.... taxes?"
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[quote=Anonymous]What if you give her a 1099 (which would seem very reasonable under the circumstances) and raise her hourly rate to cover the difference in employment tax. This would mean she wasn't out any money. You can assume it's a wash if she declares the income. If she decides to not declare it, the illegality and loss of SS is on her. You would save the cost of the payroll service.[/quote]
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