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Reply to "Confused about Nanny Taxes"
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[quote=Anonymous]Here's my take on this. Any nanny who'd consider a share for less than 25/hr, is probably not smart enough to bring forth a law suit, and the parents all know that. (My basic rates are 25. for just one child, and I don't believe I'm a genius.) I suspect that most share families are doing at least the "visiting" family off the books. Of course we all know there is zero documentation of any financial data from the domestic worker economy. Volunteer self-reporting by either the employers or the employees, is not credible without systematic supporting documentation to confirm accuracy. Our most reliable data could be the "household tax" outfits themselves, who provide the paycheck and tax services. But even if they would openly share their "average" figures, or whatever, their customers are only a tiny slice of the total domestic market. Analysts seem to believe that in general, most of this particular economy is still underground, unfortunately. Unless you're chasing a high profile government appointment or such, chances are slim that you'll be caught and charged. Feel free to share your tales about your friend who did get caught and charged. I should add that even the domestic worker payroll services might not have 100% accuracy, as employers may report an artificially low hourly rate, at or near minimum wage just to get on the books, but then give the nanny very generous routine "benefits", either in cash or other forms of payment to supplement her official low hourly rate. It's always the total benefits package that matters most, not the individual little parts. [/quote]
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