Implications of a nanny who doesn't pay taxes - Page 2

[Tigerchild]

Keep in mind that when you as a nanny choose not to report your income and pay taxes, you may hurting yourself in the long run. I know a lot of nannies who worked for 10+ years as nannies, then left the workforce to raise kids of their own, only to discover that they had zero credits with social security--which means they have no disability or social security help later on. If you expect to be a relatively low income earner for a long time, I think it's in your best interest to keep your assistance options open long term (and not listen to people who say "it'll be gone by then, you won't use it anyway"--it may and it may not, but you'll ensure it definitely isn't for you either way if you dont' contribute).

Low pay isn't an excuse for your employers to dodge this--and it's a very poor decision on a nanny's part. It can hurt you long term for very short term inconvenience.

[Louisep]

I have decided to only hire a nanny who will pay taxes. I have been in touch with a company who would set up all the paperwork (not going to use them as they're expensive) and they gave me lots of advice. They helped me figure out how much I would have to pay and how much in taxes the nanny would be responsible for. It really isn't that bad (at least for part-time). There is a childcare tax deduction that will help us and the nanny will only pay $3.50 (US) per week.

I am pro taxes in general, that's just my political philosophy. Of course, I started this thread because I didn't know about the "nanny tax" and now I do, I can't bring myself not to pay it.