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Reply to "Does anyone ever actually get caught paying a nanny under the table?"
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[quote=Anonymous]My husband and I are legal when paying our nanny (a US citizen) - we pay and report taxes. However, three of our friends that have nannies pay them under the table and have no concerns about getting caught. One friend specifically said that her nanny wouldn't work for her otherwise because she wouldn't make enough money. On one hand, I feel bad that our nanny's $19/hour salary (for 2 kids) turns into like $12-13/hour after taxes, meanwhile our friends' nannies pocket $18/hour and don't report. BUT on the other hand I would not want to get caught as we are govt employees. What would be the penalty? Have you ever known anyone in real life to get caught doing this? It seems like everyone gets away with it. How can you lose $30+K per year (nanny salary) and not get audited by the IRS??[/quote]
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