It depends on how much she makes and what state you are in. If it doesn't hit the limit of monthly income then she doesn't have to file. Yes this is true and look it up. I have.

Anonymous wrote:Well it would depend on how comfortable you would be paying her under the table.

Is this something you would do for a stellar Nanny? Someone highly responsible, dependable, flexible & loyal.

Or do you think by looking around some more, you may find another suitable Nanny who WILL agree to work on the books?

It all depends on your personal view regarding Nanny wages.

What is stellar and professional about a nanny who would break the law?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are not her slavemaster so please don't try to control her. She told you how she wants to be paid so please do it.

If it were only about the nanny's wishes, like check versus direct deposit, that would be fine. But this nanny is asking OP to break the law. And while the nanny would have to pay back taxes and fines if she were caught, OP would face much bigger fines, possibly jail time. Tax evasion is a felony, not filing your return is just a misdemeanor.

OP faces no penalty because it is up to nanny to file taxes if she wishes. If what you say was true no company would ever hire a contractor for fear they might not pay their own taxes and the company gets held liable! Think it through my dear.

Nannies are domestic employees, not contractors.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are not her slavemaster so please don't try to control her. She told you how she wants to be paid so please do it.

If it were only about the nanny's wishes, like check versus direct deposit, that would be fine. But this nanny is asking OP to break the law. And while the nanny would have to pay back taxes and fines if she were caught, OP would face much bigger fines, possibly jail time. Tax evasion is a felony, not filing your return is just a misdemeanor.

OP faces no penalty because it is up to nanny to file taxes if she wishes. If what you say was true no company would ever hire a contractor for fear they might not pay their own taxes and the company gets held liable! Think it through my dear.

It's up to the nanny to file taxes so the nanny will have her own reckoning with the IRS. That won't be the OP's problem. The OP's problem will be that she hasn't filed the EMPLOYER taxes. The OP is liable for the employer's share of taxes, and nanny for her own.

OP here. Thanks for the response above. Yes, I am happy to pay my part of the employer taxes (social security and medicare and unemployment taxes). But the Nanny wants to be paid cash. My question is if I agree to pay her cash, meaning I need to go to the bank to draw cash to pay her, and I also pay my employer taxes, will I get her into trouble if she didn't pay for her share of employee taxes (social security and medicare and unemployment taxes) as well as income taxes.

When you pay your employer taxes, you de facto disclose to the IRS that a $XXX amount was paid to person X. From that information, they deduce the amount of taxes that the nanny will owe, and will expect it from her. When they don't receive it, the nanny will get a nice letter from the IRS that says, according to our records, you received $X in compensation. You owe $Y in taxes and we look forward to receiving it soon. Whether the compensation to the nanny is paid in cash is irrelevant to the reporting bit.

Well it would depend on how comfortable you would be paying her under the table.

Is this something you would do for a stellar Nanny? Someone highly responsible, dependable, flexible & loyal.

Or do you think by looking around some more, you may find another suitable Nanny who WILL agree to work on the books?

It all depends on your personal view regarding Nanny wages.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are not her slavemaster so please don't try to control her. She told you how she wants to be paid so please do it.

If it were only about the nanny's wishes, like check versus direct deposit, that would be fine. But this nanny is asking OP to break the law. And while the nanny would have to pay back taxes and fines if she were caught, OP would face much bigger fines, possibly jail time. Tax evasion is a felony, not filing your return is just a misdemeanor.

OP faces no penalty because it is up to nanny to file taxes if she wishes. If what you say was true no company would ever hire a contractor for fear they might not pay their own taxes and the company gets held liable! Think it through my dear.

It's up to the nanny to file taxes so the nanny will have her own reckoning with the IRS. That won't be the OP's problem. The OP's problem will be that she hasn't filed the EMPLOYER taxes. The OP is liable for the employer's share of taxes, and nanny for her own.

OP here. Thanks for the response above. Yes, I am happy to pay my part of the employer taxes (social security and medicare and unemployment taxes). But the Nanny wants to be paid cash. My question is if I agree to pay her cash, meaning I need to go to the bank to draw cash to pay her, and I also pay my employer taxes, will I get her into trouble if she didn't pay for her share of employee taxes (social security and medicare and unemployment taxes) as well as income taxes.

Yes. If either one of you files, the IRS will receive a full accounting of her wages and will expect taxes to be paid. I suppose it is possible that they would somehow overlook it, but you can't pay the FICA taxes without generating a W2 (or presenting the equivalent info in your taxes), and the IRS will expect its $$$.

The bigger picture answer is that you like her, but no one is perfect. If you keep looking, you aren't losing THE GREATEST NANNY EVER. I promise. You'll find someone willing to be paid legally who is just as good.

Anonymous wrote:I'll probably never need a security clearance but I pay my nanny on the books because it's the right thing to do. I pay taxes. Everyone should pay taxes, it's the ethical and legally correct thing to do.

+1

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are not her slavemaster so please don't try to control her. She told you how she wants to be paid so please do it.

If it were only about the nanny's wishes, like check versus direct deposit, that would be fine. But this nanny is asking OP to break the law. And while the nanny would have to pay back taxes and fines if she were caught, OP would face much bigger fines, possibly jail time. Tax evasion is a felony, not filing your return is just a misdemeanor.

OP faces no penalty because it is up to nanny to file taxes if she wishes. If what you say was true no company would ever hire a contractor for fear they might not pay their own taxes and the company gets held liable! Think it through my dear.

It's up to the nanny to file taxes so the nanny will have her own reckoning with the IRS. That won't be the OP's problem. The OP's problem will be that she hasn't filed the EMPLOYER taxes. The OP is liable for the employer's share of taxes, and nanny for her own.

OP here. Thanks for the response above. Yes, I am happy to pay my part of the employer taxes (social security and medicare and unemployment taxes). But the Nanny wants to be paid cash. My question is if I agree to pay her cash, meaning I need to go to the bank to draw cash to pay her, and I also pay my employer taxes, will I get her into trouble if she didn't pay for her share of employee taxes (social security and medicare and unemployment taxes) as well as income taxes.

Anonymous wrote:I'll probably never need a security clearance but I pay my nanny on the books because it's the right thing to do. I pay taxes. Everyone should pay taxes, it's the ethical and legally correct thing to do.

I agree 100% with this and good for you employer for not only following the law but being a great example to the nanny community. No one likes paying taxes and most likely do not like anything about the IRS but it is the law of the land.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are not her slavemaster so please don't try to control her. She told you how she wants to be paid so please do it.

If it were only about the nanny's wishes, like check versus direct deposit, that would be fine. But this nanny is asking OP to break the law. And while the nanny would have to pay back taxes and fines if she were caught, OP would face much bigger fines, possibly jail time. Tax evasion is a felony, not filing your return is just a misdemeanor.

OP faces no penalty because it is up to nanny to file taxes if she wishes. If what you say was true no company would ever hire a contractor for fear they might not pay their own taxes and the company gets held liable! Think it through my dear.

It's up to the nanny to file taxes so the nanny will have her own reckoning with the IRS. That won't be the OP's problem. The OP's problem will be that she hasn't filed the EMPLOYER taxes. The OP is liable for the employer's share of taxes, and nanny for her own.

I'll probably never need a security clearance but I pay my nanny on the books because it's the right thing to do. I pay taxes. Everyone should pay taxes, it's the ethical and legally correct thing to do.

I wouldn't do it. It is breaking the law. People have been caught before and it can ruin a career before it even started. Plus, you can't write off the child care expenses on your taxes or use FSA funds.

Anonymous wrote:

Anonymous wrote:IRS doesn't much care, unless you want a White House job.

Actually, no. There are plenty of jobs which require a security clearance, and most aren't in the White House. Anytime they run a security clearance, they have a right to dig into anything, and that includes taxes. Many people don't know that they are going to need a security clearance until later.

Please tell us about all the nanny employers getting caught by IRS. You're the full of shit poster.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:IRS doesn't much care, unless you want a White House job.

Actually, no. There are plenty of jobs which require a security clearance, and most aren't in the White House. Anytime they run a security clearance, they have a right to dig into anything, and that includes taxes. Many people don't know that they are going to need a security clearance until later.

Where would they need to dig to find out they paid a nanny in cash?

I've heard of an employer who pays minimum wage on the books, and another big chunk in cash along with the pay checks.

It's as simple as looking at their bank records, seeing amounts go out on a regular basis, but no paper trail for where it went. Yes, there would be questions, and none of the possible answers (drugs, bribes, tax evasion, etc) would result in the needed security clearance. If the person has children of an age to need childcare and there's no obvious answer, I would assume that it would be easy to put two and two together.

I consider that irrelevant. It's against the law, therefore make sure you follow the law.

Apparently you're full of shit.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:IRS doesn't much care, unless you want a White House job.

Actually, no. There are plenty of jobs which require a security clearance, and most aren't in the White House. Anytime they run a security clearance, they have a right to dig into anything, and that includes taxes. Many people don't know that they are going to need a security clearance until later.

Where would they need to dig to find out they paid a nanny in cash?

I've heard of an employer who pays minimum wage on the books, and another big chunk in cash along with the pay checks.

It's as simple as looking at their bank records, seeing amounts go out on a regular basis, but no paper trail for where it went. Yes, there would be questions, and none of the possible answers (drugs, bribes, tax evasion, etc) would result in the needed security clearance. If the person has children of an age to need childcare and there's no obvious answer, I would assume that it would be easy to put two and two together.

I consider that irrelevant. It's against the law, therefore make sure you follow the law.

LOL you can't go through someones personal bank statements on a security clearance check.