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Reply to "Anyone get caught paying under the table?"
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[quote=Anonymous]I pay legally, but there is about zero risk to paying under the table. No one is going to lose a medical or legal license. If you are in high profile position or have security clearance, that's a risk, albeit a small one. If you are caught, for an employer, it's just a situation of having misclassified an employee. Which, as far as Im aware, is not actually a crime. You'd owe about 15% of the nanny's salary in back taxes plus interest and penalties. If a nanny has been paying taxes as a 1099, she has no risk in being paid under the table. However, as is likely more often the case, if the nanny is not actually paying taxes, she has liability for her entire income tax bill plus interest and penalties. Not paying taxes is actually a felony. So for the employee, although the risk of being caught is small, the potential financial and criminal penalties are actually much greater.[/quote]
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