Oops darn auto control! What I meant to say above was you are lucky to have found this- yes it is better to do things legally- but the truth is that most nanny salaries are too low in this area in the first place to justify paying taxes which is why people do it. The benefit to being legal is that you are doing things right- but if you are only offered $30,000 a year anyway why do it? It's not like a real career where when you start at that rate in 10 years you will be making $50,000 a year- in this industry unless you work for a family that can actually afford you- you won't make much more than that and very few people make that as a median range. If you are a beginner good for you!