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Employer Issues
Reply to "Does anyone ever actually get caught paying a nanny under the table?"
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[quote=Anonymous][quote=Anonymous]Actually, PP, both sides will be punished in the case you describe. Both are responsible and both will have to deal with back taxes. Divest yourself of the notion that nanny has more power in this situation. Both of you break the law. Both of you pay the price. All the more reason to insist on being paid legally.[/quote] NP but that's not really how it works. Nanny would be liable for her own personal income taxes, but like others have said her tax bill is likely low, and there's nothing to stop her from reporting the income just because you aren't. If an employer fails to withhold FICA, they become responsible for both halves. Sorry, but the employer really does have much more to lose in this situation, and a savvy knowledgeable nanny can really screw you if you give her a reason. [/quote]
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