Reply to Nanny Quit to have a baby and now trying to claim Unemployment Benefits??

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Reply to "Nanny Quit to have a baby and now trying to claim Unemployment Benefits??"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]No unemployment eligibility if you are not paid on the books, but consequences equally bad for nanny in that case anyway (unreported income/unpaid taxes) so presumably she wouldn't have filed a claim if this wasn't on the books.[/quote]
No, I don't think the consequences are equally bad for a poor nanny for earns a tiny fraction of most employers here.[/quote]]

Actually, in many cases, they can be quite a bit worse. The employer will owe about 15% of the nanny's salary in back taxes. The nanny will owe all of her income tax. If she is paid well below market or works very few hours, that could come out to an effective rate of less than 15%, but, if she's earning average rates or better, or has a spouse also earning money, it's much more likely to be worse. Even if the amounts are equal, the nanny, earning less, is going to have a much harder time paying this back than the family. If this is going on for years, with penalties and interest, a nanny could easily owe 50% or more of a year's worth of salary in taxes and penalties. (Penalties and interest can quickly double and triple the tax bill....cheating on your taxes for either party is not a smart thing to do)[/quote]

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