Anonymous wrote:^^ I have to strongly disagree with the above response.
If her Nannie is working off the books (illegally) then she cannot demand to be paid minimum wage.
Many families pay less than minimum wage when paying under the table.

I personally don’t know any Nannie’s who are working under the table that are being paid minimum wage or higher.

Most are making less than minimum wage.

Yes…because they are being taken advantage of. I cannot believe the replies here. OP - your sister is trash and so is her “nanny.” They’re both dishonest and breaking the law and I hope they both get caught. And I also think “sister” is code for YOU. Who would want a nanny scamming the government? An “employer” who is also a scammer. Great match. Neither should be around children, much less teaching a child anything. Morally bankrupt people.

^^ I have to strongly disagree with the above response.
If her Nannie is working off the books (illegally) then she cannot demand to be paid minimum wage.
Many families pay less than minimum wage when paying under the table.

I personally don’t know any Nannie’s who are working under the table that are being paid minimum wage or higher.

Most are making less than minimum wage.

Sorry if your sister can’t pay minimum wages tenant afford a nanny

This is just me speculating here but I personally think neither side will report the other.

What would be the incentive??
If the IRS finds out, the nanny will get in hot water for not reporting her wages to Section 8/HUD and the employer will get in trouble for not deducting the appropriate taxes.

I sincerely hope that the posters here are trolling. The obligation to pay minimum wage is entirely distinct from the obligation to pay taxes and these obligations are

The nanny could report the underpayment of wages (for amounts below minimum wage) to the state DOL and the employer could face fines and penalties in addition to needing to

Both employer and employee have taxation obligations that they are not meeting- the employer is required to pay social security and medicare to the feds and report wages to the state (some states do not require nanny employers to withhold state taxes from household employees but they do require that the wages be reported).

The employee is required to report and file wages earned to both the feds and the state and pay appropriate taxes.

The employee is also obligated to report wages to make sure it is complying with section 8 requirements.

The nanny could easily report the employer for not paying minimum wage. This may or may not also get back to the IRS.

^^ I agree that if an employee is working off the books then they have no right to expect or even demand that they be paid minimum wage.
Minimum wage applies only to jobs that are legal.

One cannot have it both ways.

She probably wants to get paid under the table to subsidize her Section 8 housing. So no, if she wants cash, no obligation to pay minimum wage.

But still, your sister should get her ducks in a row and pay on the books. Yes it’s more money but it’s legal and that peace of mind is worth something!

Anonymous wrote:I don’t think morally ( not sure legally) you can demand minimum wage when you’re not paying any taxes. Let’s say the state minimum wage is $15 an hour. If the Nanny is making $12 an hour and not paying tax it’s the same as making $15 an hour and paying taxes.
In general taxes, social security etc takes about a 3rd away……..

+1

True

I don’t think morally ( not sure legally) you can demand minimum wage when you’re not paying any taxes. Let’s say the state minimum wage is $15 an hour. If the Nanny is making $12 an hour and not paying tax it’s the same as making $15 an hour and paying taxes.
In general taxes, social security etc takes about a 3rd away……..

Wait so how much does your sister pay?

Anonymous wrote:My Sister employs a Nanny who lives in Section 8 housing.

Both the Nanny as well as my Sister hate filling out all the forms/faxes that are required 2x/annually so they prefer to simplify things by only dealing with cash.
Recently the Nanny has been asking my Sister for a raise…..she wants to be paid her state’s minimum wage.

I told my Sister since she is working under the table then the minimum wage requirement does not apply.

What say you?

Your sister is a fool and I hope both get caught.

Yes the nanny here can make a complaint that she is not being paid the minimum wage but the problem with this is that she will also be discovered to be also working under the table - - not paying taxes so if she doesn’t want to get in trouble - - it is best to speak directly with her employer and let her employer know that they also are at risk of getting into trouble.
Considering how much gets taken out for taxes in general the net (take home) pay probably evens out.

I used to work as a Section 8 housing representative. We only checked income once a year. Do you know what would make things easy? Paying the employee the correct way using a payroll service where everything is documented and you can just easily print out copies of what the nanny earned from whatever system the payroll service uses. Its a total cop out to say its too much paperwork! Not to mention that the nanny is getting unfairly subsidized rent because it looks like she makes nothing instead of Section 8 taking out 30% of her income as they should. And now, paying less than minimum wage? Ridiculous! I hope the nanny sues her for underpayment of wages! Your sister better hope this nanny doesn't want unemployment benefits down the line because she will surely be caught. Just grow up and do the right thing.

Even though working off the books is illegal and wrong, it is NEVER an excuse to skip out on paying a working wage.
The minimum wage should always be paid for anyone who works, whether they are watching your precious offspring or mopping your floors.
It is unconscionable to pay a person less than this just because you are paying them cash monies.

I know that I will get flamed by saying this but it is the fundamental truth.

My Sister employs a Nanny who lives in Section 8 housing.

Both the Nanny as well as my Sister hate filling out all the forms/faxes that are required 2x/annually so they prefer to simplify things by only dealing with cash.
Recently the Nanny has been asking my Sister for a raise…..she wants to be paid her state’s minimum wage.

I told my Sister since she is working under the table then the minimum wage requirement does not apply.

What say you?