This topic has been coming up quite a bit on nanny message boards and we’re now in the tax season. Our friends at 4Nannies.com have this great information to share on how being paid under the table hurts nannies.
It’s estimated that only 5 to 10% of employers pay taxes on their nanny’s wages. This means that an overwhelming majority of nannies are being paid cash or under the table. While this arrangement can save the nanny money in the short term, in the long term it can cause a lot of problems. Here are some ways that being paid cash can hurt, rather than help, a nanny.