Top Nanny Payroll Questions
Today we are sharing a post from HomeWork Solutions/4NannyTaxes a member of NannyFusion.
The three top questions are:
1. I had a serious misunderstanding with my family and left my nanny job without notice. I received a text from my employer, a lawyer, asking for my mailing address so she could “1099” me. Isn’t she supposed to give me a W-2? What does this mean?
2. I agreed to work for a family for cash – under the table. We agreed on a rate knowing that no taxes would be deducted or reported. My boss has been collecting money from a special tax free account, and just learned she has to pay taxes and report my income. What does this mean to me?
3. I hired a foreign nanny who is here legally on a visa but she doesn’t have a Social Security Card. What do we do about the taxes?
To discover the answers to these questions go and visit to read the rest of the article
I recently keep seeing all this stuff about nannies and taxes, and I have to say, huh? I have been a nanny for 15 years and every single family, save one, that I have worked for has paid me under the table. The only exception was when the mom I worked for was an IRS employee and said she would get found out and fired. Most people I work for enjoy the fact that they don’t have to pay social security and stuff, and I enjoy getting to keep my money. I wonder if this is a regional issue, I have worked mostly in Denver and Las Vegas. I keep hearing nannies talk about employers who offer to pay under the table…and the nannies seem to think this is a bad thing? Why don’t you nannies want to be paid under the table? Then you get to actually keep your money.
There are several reasons why nannies want to be paid legally.
Here are just a few:
Nannies want to be recognized and respected as professionals. Nannies need to have a paper trail of their work history so that they can establish credit, pay into social security and take advantage of the the benefits that come from paying taxes. If you work as a nanny and don’t pay your taxes and then you try to buy a home, or even a car, you have no way to prove how much money you make. If you lose your job you can’t draw unemployment. In what other field can you go into a job and say “I want to make this amount of money, I want benefits like paid vacation, and sick days and “oh by the way “I don’t want to pay taxes.
Paying taxes is one more way of investing in a secure future.