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Reply to "Annual Raise"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal). We are increasing this year $2/hr (from $28 to $30). We do offer a monthly health insurance stipend which is tax free for us and our nanny.[/quote] Not illegal at all, it’s a bonus and not taxable. We usually give our nanny about 2k at the end of the year and Nordstrom gift card. [/quote] Ooh, very wrong. If this were true you could just pay minimum wage and give employees a $50k cash bonus at the end of the year. Just because some or even many people do it doesn’t make it legal. Payroll services actually often withhold taxes at a higher rate than salary to be conservative, because of the uncertain implications bonuses and discretionary payments have on the final tax bracket at year-end.[/quote]
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