Anonymous
Post 05/02/2013 02:53     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Bad idea. A nanny is not a contractor and you can get in trouble for treating her like one.


Oh, really expert. Spit out the "trouble".... Smoke and mirrors is all you paranoias got. An employee can be treated like a contractor and it's completely legal and it's completely on book. It really relieves the stress of direct higher. People need to start thinking out of the box once in a while. Good luck OP.


It is NOT legal to pay a nanny as an independent contractor! While it is legal to pay some people that way, a nanny is never classified as one unless she is setting up all the rules of how to care for the child, when she wants to come in and leave, and so on. I have never heard of a nanny that can work in this manner, therefore she is considered a domestic worker and paid as such. If you are going to be 10 minutes late, can your nanny decide that she is just going to leave at her normal time anyways? Or decide to leave an hour earlier that day, before you are back home?

Being legal doesn't just mean having her pay some kind of taxes. It means paying the RIGHT taxes in the right way. The employer would have to still show that they are paying money to the nanny, and then labeling her as an independent contractor to not pay employer taxes. All the IRS has to do is see that she is actually a domestic worker and the parents will be in heaps of trouble. The nanny not so much, as she will have been paying not only what she should have been but more taxes than she should have been. The parents could be caught for fraud and tax evasion. I don't see how that is "completely legal and completely on book".
Anonymous
Post 05/02/2013 02:43     Subject: Market Rate for Cash

Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Ok, so you want to have the OP get out of paying taxes (even though it seems she is willing to pay them), and have the nanny pay way more than she should be if acting like she is a contractor. The nanny would not go for this, especially if she is trying to get out of paying taxes.
Anonymous
Post 05/01/2013 19:05     Subject: Re:Market Rate for Cash

Cash- I'd top out at $10/hr.

No serious professional would ask this, so she shouldn't be treated as one.

You say you understand the legal implications- let us know ow that pans out for you when you let her o or she quits and files for unemployment/SS /etc. one day she'll want a loan, won't be able to get it without throwing you under the bus and so that is what she will do. Additionally, she can claim you did not follow OT laws and file for all back OT with the dept. of labor wage & hour board- and they will tend to side with her. That's all on top of it being illegal and fraudulent. Better hope you or your husband never need a security clearance.
Anonymous
Post 05/01/2013 16:17     Subject: Market Rate for Cash

M here - If you do decide to pay cash, perhaps don't pay her the same gross salary as your prior nanny, but also not the same net salary. Often people want to be paid off the books to put more money in their pocket rather than the government's, but there should be something in it for the employer as well, so offer something in between.

We usually pay on the books but right now we are hiring a summer nanny who is in college and will pay her off the books so she can still get her tuition subsidy from the government. As it is a very short-term arrangement we are ok with taking the risk, but with a more long-term nanny we would do it on the books.
Anonymous
Post 05/01/2013 16:04     Subject: Market Rate for Cash

We pay all required federal and state taxes for our nanny. She earns a rate of $16/hour after taxes, plus $40/week in gas stipend. We give her two full weeks of paid vacation, and an additional two weeks of unpaid leave as/if she requires.
Anonymous
Post 04/30/2013 15:06     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Bad idea. A nanny is not a contractor and you can get in trouble for treating her like one.


Oh, really expert. Spit out the "trouble".... Smoke and mirrors is all you paranoias got. An employee can be treated like a contractor and it's completely legal and it's completely on book. It really relieves the stress of direct higher. People need to start thinking out of the box once in a while. Good luck OP.


PP is correct. You are wrong. Anyone can look up the state and federal law on hiring household workers. You and your spouse will be liable for back taxes and substantial penalties if you are caught. If you or your spouse are a government or political position, you could lose your jobs. All it takes is one call to the state employment office or IRS, an audit, security clearance background check, a babysitter or house cleaner that wants government benefits, or someone who doesn't like you. If ignorance is less stressful for you now, more power to you. These laws have been around for over twenty years so it is nothing new.


Ditto with the PPs who said it's not legal, and you can get in trouble with the IRS. And by "trouble," I mean being on the hook for back taxes, penalties, and interest, which can be substantial. If you work for the government or have a security clearance, you can lose your job. Of course, some people pay under the table or treat their nannies like independent contractors, but that doesn't make it legal and it doesn't make it a good idea.
Anonymous
Post 04/30/2013 06:45     Subject: Re:Market Rate for Cash

Op sorry no one really gave u much to work with except one person who then got trashed. We all know it happens so why people can't just fess up... My neighbor pays 15 for two kids cash. Arlington near metro so pretty urban.
Anonymous
Post 04/25/2013 15:30     Subject: Market Rate for Cash

It is TAX FRAUD, pure and simple.
Anonymous
Post 04/25/2013 15:27     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Bad idea. A nanny is not a contractor and you can get in trouble for treating her like one.


Oh, really expert. Spit out the "trouble".... Smoke and mirrors is all you paranoias got. An employee can be treated like a contractor and it's completely legal and it's completely on book. It really relieves the stress of direct higher. People need to start thinking out of the box once in a while. Good luck OP.


PP is correct. You are wrong. Anyone can look up the state and federal law on hiring household workers. You and your spouse will be liable for back taxes and substantial penalties if you are caught. If you or your spouse are a government or political position, you could lose your jobs. All it takes is one call to the state employment office or IRS, an audit, security clearance background check, a babysitter or house cleaner that wants government benefits, or someone who doesn't like you. If ignorance is less stressful for you now, more power to you. These laws have been around for over twenty years so it is nothing new.
Anonymous
Post 04/25/2013 15:25     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Bad idea. A nanny is not a contractor and you can get in trouble for treating her like one.

Call the nanny a newborn care specialist to make everyone here happy.
Anonymous
Post 04/25/2013 15:14     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Bad idea. A nanny is not a contractor and you can get in trouble for treating her like one.


Oh, really expert. Spit out the "trouble".... Smoke and mirrors is all you paranoias got. An employee can be treated like a contractor and it's completely legal and it's completely on book. It really relieves the stress of direct higher. People need to start thinking out of the box once in a while. Good luck OP.
Anonymous
Post 04/25/2013 15:04     Subject: Market Rate for Cash

Anonymous wrote:OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.


Bad idea. A nanny is not a contractor and you can get in trouble for treating her like one.
Anonymous
Post 04/25/2013 10:51     Subject: Market Rate for Cash

OP, treat the babysitter like a contractor where it's her job to pay the taxes and leave you out of it. Just pay her the full rate. We're mom's who need child care, not corporations. This country is getting more ridiculous by the day.
Anonymous
Post 04/25/2013 09:39     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Pay her $391.30, which is 70% of $559 (the on the book rate for two kids at $13/hr)

Dumb advice.


Thanks for the thoughtful two word post. Sounds like your a dumb ass and probably a greedy nanny who's lousy.

You're welcome. Your post appeared to advocate not paying taxes. If that was not your intent, my apologies.
Anonymous
Post 04/25/2013 09:11     Subject: Market Rate for Cash

Anonymous wrote:
Anonymous wrote:Pay her $391.30, which is 70% of $559 (the on the book rate for two kids at $13/hr)

Dumb advice.


Thanks for the thoughtful two word post. Sounds like your a dumb ass and probably a greedy nanny who's lousy.