Anonymous wrote:This is my first time employing a nanny so sorry for the stupid question. We have a nanny currently that we pay 100% on the books. Recently she asked me if we could pay her the same rate off the books which she said would save me money too since we won't be paying our portion of FICA taxes. She told me I could consider the money we give her as a "gift"? This is too gray area for me so I don't know. Any advice? To me this sounds like tax fraud and I could get into a lot of trouble if someone found out.
It is tax fraud and you will be held accountable if found out. Protect your future and don't do this. This could come back several years from now and ruin your life.