tag:blogger.com,1999:blog-773373869463725905.post609116076017166768..comments2023-10-31T06:06:59.528-04:00Comments on How to Be the Best Nanny : The Nanny Tax NightmareBest Nanny Newsletterhttp://www.blogger.com/profile/06103799261254020125noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-773373869463725905.post-25626085793789481252010-11-16T13:18:02.590-05:002010-11-16T13:18:02.590-05:00In direct response to the last part of the article...In direct response to the last part of the article: they have moved the threshold slightly since 2008. It is now $1700. So that's a move in the right direction, small as it may seem. Anonymous on May 15 5:01pm, you are right. The employer does have to pay taxes above and beyond the employee's withheld taxes. They need to pay unemployment insurance and MATCH the social security and medicare taxes the employee is paying. Anonymous on Feb 8 9:05am can refer to IRS publication 926 to prove this. For you law-abiding citizens that do pay the tax, a payroll company is definitely the way to go. Thanks to the government, it is really a specialty area. GTM is a great company. It can be found at www.gtm.com and they give free tax advice if you call them. They're 20 years old so they probably know their stuff.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-15232492836556095462009-05-15T19:01:00.000-04:002009-05-15T19:01:00.000-04:00It is so inticing to not pay taxes. Keep all the m...It is so inticing to not pay taxes. Keep all the money and spend it how you like. <br /><br />I think every single commenter agrees that NO ONE WANTS TO PAY TAXES. Not nannies, not parents, not teachers, not book keepers, not celebrities, not garbage men, not librarians, not executives, not retailers, not anyone. <br /><br />It's the great American sport -- trying to not pay taxes, or lower taxes, finding tax loopholes, find more tax credits.... <br /><br />The point is that it's the law. Yes, it stinks to pay taxes. There are some protections though, especially if you need credit. To lease or buy a car, apartment, mortgage, and find another job it's important to be paid legally.<br /><br />Until tax laws change or are made easier we just all ought to follow the law. If not, you just might get screwed.<br /><br />Most domestics do not pay taxes and most nanny employers do not submit taxes on behalf of their employees because they want to save money and time and they get away with it. <br /><br />Smart nannies and parents would be smarter though to look at the big picture and consider the risks of not paying (or being paid) legally.<br /><br />Nanny Michelle, Delaware<br />TheMichellehttps://www.blogger.com/profile/11213382229701873907noreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-49380161539585486802009-05-15T17:15:00.000-04:002009-05-15T17:15:00.000-04:00And there are a variety of reasons nannies have fo...And there are a variety of reasons nannies have for wanting to not have their earnings reported to the IRS. Another would-be nanny that I encountered had previously lost a job and was drawing unemployent benefits when we met. If I'd hired her and filled out the proper forms, she would have lost her benefits. The pay I offered would have exceeded her benefits. But she felt it was better for her to be able to be paid under the table so that she could continue getting her unemployment benefits. I don't know her personal situation, and perhaps she really needed the money. All the same, I can't claim any child care expenses for deductions on my taxes if I don't go through the trouble of meeting every state and federal requirement for filing taxes. <br /><br />I noticed comments here like "American citizens working in other professions cannot moan and groan about paying taxes and expect not to pay what is required by law because tax forms are difficult to manage! " I'd love to see these nannies hold their own peers to this standard. It makes life easier for parents who want to file taxes properly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-66431496197457943942009-05-15T17:01:00.000-04:002009-05-15T17:01:00.000-04:00"What annoys me most is parents complaining about ..."What annoys me most is parents complaining about the cost to pay taxes?!! Parents do NOT pay more to file taxes!! They WITHHOLD THAT MONEY from the employee's (nanny’s) paycheck then pay the government when required."<br /><br />Apparently the poster who wrote this does not understand enough about payroll taxes to realize that his/her statement is incorrect. The parents actually DO have to pay additional taxes on the nannie's salary that do NOT come out of the nanny's pay. The state in which I reside has laws which specifically indicate that employers must pay unemployment tax, and the funds for this cannot be deducted from the worker's pay. There are a number of states that have this regulation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-21072773240916645632009-05-15T16:53:00.000-04:002009-05-15T16:53:00.000-04:00There are some awfully self-righteous comments mad...There are some awfully self-righteous comments made by people who identify themselves as nannies. None of them seem to want to admit the other side of the coin: nannies who want to be paid under the table because they (the nannies) don't want to pay taxes on their earnings. I've encountered more than a few nannies like this since I've become to interview possible childcare providers. It's not necessarily a matter of being here illegally. One such prospective nanny that I interviewed (but am not using) is a US citizen who just doesn't want taxes taken out of her check. We live in a high tax state, and I realize that, but everyone - including nannies - has to pay taxes. So anonymous thinks parents need to stop blowing things out of proportion? Maybe nannies need to stop trying to hide their earnings under the table. As anonymous said, it's not that hard to pay taxes. Not hard at all. And yes, I pay a fair salary. I just don't want to do it under the table.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-65906282600441664232009-02-09T17:14:00.000-05:002009-02-09T17:14:00.000-05:00Very easy to download the proper forms from IRS.go...Very easy to download the proper forms from IRS.gov. Do not let these parents make a cheat out of you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-70278477096086679902009-02-09T10:14:00.000-05:002009-02-09T10:14:00.000-05:00Parents need to stop blowing things out of proprti...Parents need to stop blowing things out of proprtion. It isn't that hard to pay taxes. If it is difficult for a parent s/he simply hires an accountant. Not hard.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-3959836203474851582009-02-08T18:00:00.000-05:002009-02-08T18:00:00.000-05:00Everyone wants to pay less taxes and that is the A...Everyone wants to pay less taxes and that is the American way! Free capitalism without socialist laws. Everyone tries to cheat the government out of taxes and for domestic workers it's easy to do.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-45303394329730384922009-02-08T15:28:00.000-05:002009-02-08T15:28:00.000-05:00I really don't get the difficulty. Doesn't it take...I really don't get the difficulty. Doesn't it take the parents time to fill out their personal taxes from their jobs anyway? It's just part of the routine of being an adult. IRS has all the forms online. It's not that hard. I spend a Saturday each year and file my taxes. No big deal.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-67384728284434728102009-02-08T14:55:00.000-05:002009-02-08T14:55:00.000-05:00I am a nanny and am smart enough to do my taxes. N...I am a nanny and am smart enough to do my taxes. Not that tricky. Garbage collectors, waitresses, seamstresses, maids, pilots, cashiers, receptionists, CEO’s, and each and every worker is required to pay taxes. Just because you are a parent or domestic employee doesn’t make you special and somehow allowed to break the law.<BR/>Natasha, Career Nanny, Portland, OregonAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-3764832614118374352009-02-08T12:01:00.000-05:002009-02-08T12:01:00.000-05:00The reason we cannot treat nannies as self-employe...The reason we cannot treat nannies as self-employed is that a nanny does not fit the IRS definition of an independent contractor. Nannies are defined as an employee because the employer controls the nanny's responsibilities making the nanny an employee, and requiring him or her to pay taxes.<BR/>Miriam, Nanny, Dallas, TXAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-55800039036810665952009-02-08T10:18:00.000-05:002009-02-08T10:18:00.000-05:00Most Americans can only wish they had this problem...Most Americans can only wish they had this problem. Most nanny employers are in a financial salary bracket that can afford to hire a CPA to do their taxes for them. This shouldn't even be an issue for them. If they aren’t wealthy enough to afford an accountant to the tax paperwork for them than the other commenters are right, then they should buy the software to do it for them. <BR/><BR/>In three minutes I just googled the following sites and there are more I am sure:<BR/><BR/>www.nannytaxprep.com<BR/>www.nannypay.com<BR/>www.breedlove-online.com<BR/>www.gtm.com<BR/>www.householdemploymenttaxes.com<BR/>www.4nannytaxes.comAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-18896993076911698952009-02-08T09:05:00.000-05:002009-02-08T09:05:00.000-05:00I have been reading and hearing about all of this ...I have been reading and hearing about all of this NannyGate drama for weeks and I finally feel the need to post something. <BR/><BR/>NannyGate is a huge problem for this country and if simplifying the process would encourage more nannies to get paid on the books legally then we should definitely do it. <BR/><BR/>But, in reality if people can "beat the system" and figure out how to not pay taxes and not get caught, than they will do it. <BR/><BR/>What annoys me most is parents complaining about the cost to pay taxes?!! Parents do NOT pay more to file taxes!! They WITHHOLD THAT MONEY from the employee's (nanny’s) paycheck then pay the government when required.<BR/><BR/>For example, a nanny making $1,000 per week won't take home more than $750 - $775 per week. <BR/>But that difference stays in the parent's bank account until time to pay taxes. The difference is calculated by the employer's nanny tax software (the parents I work for use Essentia I think). My employer keeps that money until time to submit the taxes.<BR/><BR/>Then, the nanny (me) gets a substantial refund at the end of the year. In fact, the refund may be a hefty one if s/he can claim deductions. <BR/>It's the employee's (nanny's) take home salary that is affected, not the parent's.<BR/><BR/>Even so, no one wants to pay taxes. Everyone wants to pay less. <BR/><BR/>If simplifying the system for those without the appropriate software would encourage parents and nannies to pay taxes it would be great. <BR/><BR/>But, I do not think the difficulty of filiing is really why parents aren’t paying taxes. <BR/><BR/>The real reason is they want to be scuff laws.<BR/><BR/>I think the nation has a lot more pressing topics to deal with at the moment and parents and domestic employees cannot use the argument of taxes being difficult to file as an excuse to break the law.<BR/><BR/>Melanie R., Professional Nanny, Cambridge, MAAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-11745444353521953122009-02-08T08:12:00.000-05:002009-02-08T08:12:00.000-05:00Politicians should simplify the tax code and treat...Politicians should simplify the tax code and treat everyone as self employed. But at the same time just because it is difficult to understand, we still should follow the law. But changing things would simplify everything for everyone and encourage more domestic employers to actually comply. Nannies and parents that employ them aren't the only ones evading paying taxes. But that doesn't make it right. We can rally to make the laws easier and simplify the process while following the law and continue to pay legally.<BR/>Meredith Swan, Nanny, Newborn Specialist, CTAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-773373869463725905.post-24650943798217063882009-02-07T20:29:00.000-05:002009-02-07T20:29:00.000-05:00Nannies, you should buy inexpensive nanny tax soft...Nannies, you should buy inexpensive nanny tax software and give it to your employers. It is inexpensive and easy-to-use. You protect yourselves as an American citizen by paying taxes as required by law. <BR/><BR/>Don't let parents say the paperwork is too difficult. Do their employers say that to them?<BR/><BR/>American citizens working in other professions cannot moan and groan about paying taxes and expect not to pay what is required by law because tax forms are difficult to manage! <BR/><BR/>The idea that paying taxes is hard is ridiculous because with computer software it's not at all difficult anymore and paying taxes it's required by law whether it's hard to do or not. <BR/><BR/>All American citizens must make the time to fill out the IRS paperwork before working, whether hey like it or not and whether it takes time or not.<BR/><BR/>Sorry if it make some time to do, but that's just life.<BR/><BR/>If you are a parent you may not want to be an employer but when you hire someone to work in your home you become an employer. Period. You don't have to like the responsibilities that go hand-in-hand with being an employer, but that's tough.<BR/><BR/>Excel sheets aren't need these days. There are dozens of INEXPENSIVE nanny tax software available. Just google "nanny tax software" and you'll find dozens. The software does the work for the employer. Excel sheets are not needed!! <BR/><BR/>It literally takes my boss (father) two minutes each Friday morning at the kitchen table to open his laptop and type in how many hours I worked that week into the nanny tax software. Then he writes me the check with the number the software puts out.<BR/><BR/>It took me less than ten minutes to hand him my social security card and driver's license to photocopy to confirm I am eligible to work in the United States and for me to fill out the proper IRS paperwork so I can work legally. <BR/><BR/>Every citizen of every profession must do the same. <BR/><BR/>Not much to ask when there are federal, state, and country roads to maintain, public schools to educate our children, and soldiers to equip with supplies. In this economy I like knowing I pay taxes in case I am laid off and must file for unemployment. What if I get hurt and need to accept disability benefits? <BR/><BR/>I deserve the benefits afforded me as a citizen of the United State of America and I do that by paying taxes as legally required by law.Best Nanny Newsletterhttps://www.blogger.com/profile/06103799261254020125noreply@blogger.com