Did you hear about the nightmare nanny in California that was able to stay in the house against the homeowner's wishes because there was no contract specifying all the details of the arrangement between them?

If it were me, I'd have everything in writing, just in case.

http://www.nydailynews.com/news/national/nightmare-nanny-refuses-leave-california-home-claims-family-feed-dog-food-article-1.1851943

Keep payment receipts and any paperwork from your payroll service.

Your employer ID number will prove to the IRS that you are an employer, and the quarterly taxes you remit will prove you are paying nanny legally.

A work agreement outlines what nanny is expected to do for her weekly paycheck, as well as PTO, holidays, house rules, and so forth. It keeps everyone on the same page as to what the job entails.

You don't HAVE to have a contract, and it really won't do anything when proving to the IRS how much you're paying your nanny. Unless you are being audited I don't see why the IRS would want proof beyond the normal documents about what you are paying your nanny.

Anonymous wrote:http://www.dcurbanmom.com/nanny-forum/posts/list/300211.page

Same poster most likely.

No, different poster. I am the OP of that thread and not this one. I think lots of new parents are confused about becoming an employer and hiring a nanny for the 1st time. Its confusing and everyone wants to do right by all... its hard to get your head around it all.

http://www.dcurbanmom.com/nanny-forum/posts/list/300211.page

Same poster most likely.

I believe as of now it is mandatory to have a contract in all of Massachusetts as well. There are regulations about what needs to be on it, but not so much on the content. For example, you have to address time off in the contract, but there is no rule that you have to actually give any paid vacation (sick leave of some amount is mandated in a lot of places). You just have to address it.

But, of course you can game the IRS! People do it all the time. I pay strictly legally ... except for holiday bonuses and birthday gifts which I give in cash. Yes, I know the law. Audit me, and I'll pay up.

You're getting bad advice here OP. There are areas of the country where employers of domestic workers are required to have a contract, montgomery county MD for example. It doesn't have anything to do with paying on the books as that is a requirement wherever you are located.

No, it is never mandatory to have a contract. But some things you just don't cut corners on.

You are under no legal obligation to have a contract. Ever. It's not really even legally enforceable in most cases. It's really just a work agreement where you say we hire nanny to do X tasks and in exchange we'll pay Y rate. It just clarifies who's doing what, benefits etc.

If you're truly paying on the books, you'll be sending payments to the IRS just like your employer does for you. That's how they'll know how much you're paying.

You're mixing issues. If you pay your nanny legally you will be witholding taxes and paying taxes - that is how the IRS will know.

A contract is not essential but is extremely smart. Extremely.

Start doing some research - you'll find the nanny pay agencies (nannytaxes, breedlove, etc...) will have lots of great information to get you started.

If I don't have a contract with the nanny, how can I proof the IRS how much I paid my nanny. What if some people show less "on the books" but in reality pay more. Feels like I need a contract? Let me know your thoughts. Also, where can I get a sample contract?