Anonymous wrote:Any nanny who covers all due taxes herself as a 1099 obviously charges higher rates, as does any similar professional.

Or she doesn't know any better and believes what some uninformed, at best, or unscrupulous, at worst, employer tells her. I doubt very highly that employers that 1099 their nannies are paying higher rates to offset it. I would guess that they are cheap in all things, not just some.

Do you get in trouble if it's over a certain amount? Like if I get payed under 1000 it's no reason I get in trouble right

Any nanny who covers all due taxes herself as a 1099 obviously charges higher rates, as does any similar professional.

Anonymous wrote:I pay legally, but there is about zero risk to paying under the table. No one is going to lose a medical or legal license. If you are in high profile position or have security clearance, that's a risk, albeit a small one.

If you are caught, for an employer, it's just a situation of having misclassified an employee. Which, as far as Im aware, is not actually a crime. You'd owe about 15% of the nanny's salary in back taxes plus interest and penalties.

If a nanny has been paying taxes as a 1099, she has no risk in being paid under the table. However, as is likely more often the case, if the nanny is not actually paying taxes, she has liability for her entire income tax bill plus interest and penalties. Not paying taxes is actually a felony. So for the employee, although the risk of being caught is small, the potential financial and criminal penalties are actually much greater.

There would be interest and penalties for both sides, and you're right not paying taxes is a crime, for employee and employer. There is certainly a risk to your clearance, your lisence, and your reputation if you are caught skimping on taxes as a nanny employer. Please don't spread the information that it isn't a big deal. A nanny paying taxes as a 1099 is paying her taxes and yours, and any employer trying to go this route as though its fine ought to be ashamed of themselves. Pay your damn taxes.

My previous employer did. They paid a shit load in back taxes.

I pay legally, but there is about zero risk to paying under the table. No one is going to lose a medical or legal license. If you are in high profile position or have security clearance, that's a risk, albeit a small one.

If you are caught, for an employer, it's just a situation of having misclassified an employee. Which, as far as Im aware, is not actually a crime. You'd owe about 15% of the nanny's salary in back taxes plus interest and penalties.

If a nanny has been paying taxes as a 1099, she has no risk in being paid under the table. However, as is likely more often the case, if the nanny is not actually paying taxes, she has liability for her entire income tax bill plus interest and penalties. Not paying taxes is actually a felony. So for the employee, although the risk of being caught is small, the potential financial and criminal penalties are actually much greater.

Anonymous wrote:I find that after 5 years of being in childcare many families prefer to pay under the table. I'm in grad school and not paying taxes helps me get more financial aid.

You mean it helps you take financial aid from people who need it. Schools have limited aid to give out. If you're getting more than you should based on your income, you STEALING that aid from someone who needs it. I don't usually care about people working under the table, but please understand that what you're doing is terrible. I say this as someone who barely qualifies for any aid, because I got a job to put me through school, working 50 hour weeks, and a full course load. You suck.

Unemployment claims are your biggest risk - if you let the nanny go she can file, which blows the whistle on you.

I find that after 5 years of being in childcare many families prefer to pay under the table. I'm in grad school and not paying taxes helps me get more financial aid.

Wow I am so sorry that typo offended you so much. My deepest apologies. I will pray that you find it in your heart to forgive me for any and all typos I might have. Again I am so sorry.

Now look up "typo", 8:46. Thank you.

Anonymous wrote:I've always been paid legally. I've had bosses mention that you can loose your license if your a doctor or lawyer of you don't pay legally.

loose
lo?os/
adjective
1.
not firmly or tightly fixed in place; detached or able to be detached.
"a loose tooth"
synonyms: not fixed in place, not secure, unsecured, unattached; More
antonyms: secure, tight
not held or tied together; not packaged or placed in a container.
"wear your hair loose"
synonyms: untied, unpinned, unbound, hanging free, down, flowing More
(of a person or animal) free from confinement; not bound or tethered.
"the bull was loose with cattle in the field"
synonyms: free, at large, at liberty, on the loose, escaped; More
antonyms: secure
not strict or exact.
"a loose interpretation"
synonyms: vague, indefinite, inexact, imprecise, approximate; More
antonyms: literal, narrow
not close or compact in structure.
"a loose weave"
typical of diarrhea.
"many patients report loose bowel movements"
2.
(of a garment) not fitting tightly or closely.
"she slipped into a loose T-shirt and shorts"
synonyms: baggy, generously cut, slack, roomy; More


lose
lo?oz/
verb
1.
be deprived of or cease to have or retain (something).
"I've lost my appetite"
synonyms: be deprived of, suffer the loss of; More
antonyms: keep, regain
cause (someone) to fail to gain or retain (something).
"you lost me my appointment at the university"
synonyms: be deprived of an opportunity, fail to benefit, be disadvantaged, be the loser More
be deprived of (a close relative or friend) through their death or as a result of the breaking off of a relationship.
"she lost her husband in the fire"
(of a pregnant woman) miscarry (a baby) or suffer the death of (a baby) during childbirth.
be destroyed or killed, esp. through accident or as a result of military action.
"a fishing disaster in which 19 local men were lost"
decrease in (body weight); undergo a reduction of (a specified amount of weight).
"she couldn't eat and began to lose weight"
waste or fail to take advantage of (time or an opportunity).
"they lost every chance to score in the first inning"
synonyms: miss, waste, squander, fail to grasp, fail to take advantage of, let pass, neglect, forfeit; More
antonyms: seize
(of a watch or clock) become slow by (a specified amount of time).
"this clock will neither gain nor lose a second"
informal
lose control of one's temper or emotions.
"in the end I completely lost it—I was screaming at them"
2.
become unable to find (something or someone).
"I've lost the car keys"
synonyms: mislay, misplace, be unable to find, lose track of, leave (behind), fail to keep/retain, fail to keep sight of More

We only hear of high-profile government applicants, don't we? It seems there are just too many squeaky wheels doing it, so IRS refuses to crack down on these lawbreakers in any significant way. It's probably the most ignored underground economy in America.

I've always been paid legally. I've had bosses mention that you can loose your license if your a doctor or lawyer of you don't pay legally.

How likely is one to get caught paying a nanny off the books? What are the consequences?