nanny payroll/tax questions

[shanniesue2]

I don't know if I should post this here or in the working mamas forum... but I'll start here.

I am just now starting my adventure into nannying... I have plenty of experience working in childcare... but not on a private basis.

I have received 3 requests today for a nanny situation, and when setting up a payment situation, how do I handle tax/social security issues? I figured that the family would write me a check based on our pay schedule agreement, and I would give them a receipt. And then I would set part of that aside to cover taxes and social security. But really, I don't know that much about payroll and this seems too easy. Is there something I'm missing? How does this part of the nanny job work? Should I talk with a CPA or a tax attorney?

I'm hoping that these kinds of issues don't cause unnecessary delays in my finding a position, but I also don't want to end up getting myself or a family in trouble for tax fraud or some other inadvertant crime just because I don't know about this stuff.

[jasonswife06]

I have been a nanny for 8 years & worked for 5 different families. Some nannies will say do it on the books or your not a real nanny
others take pay under the table.

I have done both, I do what ever the family wishes. It is up to you and what you feel most comfortable with. I honestly don't care anymore (I used to only want my taxes taken out, etc.) if a family pays me on or off the books, as long as they pay me well and are a great family to work for, I have learned not to sweat it. If it is something you want to do tell them so they can take out the taxes from your check. THey will also have to pay a tax for having you as their employee (which I think is why some people go under the table). HTH.

[cak1207]

I've been a nanny for six years. And like the pp I have done both. Most of my employers took the taxes out of my paycheck. So when I had the interview I always told them my net pay. And then I had one employer who paid under the table. So it's really up to you and your employer. Do you want to worry about paying taxes quarterly or do you want them to do it. I've never done it myself but I helped my previous employer pay my taxes and it wasn't that hard. HTH!

[Hesperia]

Also been a nanny for a few families, and been paid both.

I now make my employer remove my tax. It is such less of a headache, and it is VERY simple for them to do. You are their employee, so in my mind, they should be doing their job and filling those numbers away for you. But, that is just me.

I ended up owing money back to the govenment because I did under-the-table work and didn't file those taxes correctly. It's been a very annoying and painful process. Never again.

[PassionateWriter]

http://www.smartmoney.com/tax/homefa...fm?story=nanny

http://www.nannytaxprep.com/index_faq.html