Nanny Survey 2008: Reporting Earnings to IRS
Archived Q&A and Reviews
20. Do you report your nanny's earnings to the IRS?
- "-we report approx 50% b/c i have dependent daycare flex account so we want to use that -our nanny wanted to be on the books, when we started with her she was in the process of obtaining citizenship and she reports her own income -our nanny share partner does not report -we have not yet figured out which filing service to use but we will use one"
"40% reported. nanny didn't want to report full earnings, but she wanted to report part of it. i do it myself."
"Again, it was her request not to report it, so we complied."
"Again, we are working to change this."
"Again, we want to report it but our nanny is unwilling due to her family's financial situation."
"At her request, we pay cash every two weeks. If we were to change this, we would look at covering her share of taxes, too."
"Nanny wanted to be paid on the books as she doesn't want to break the law, nor do we. We report only half of her income though as it otherwise would cost us too much and would cost her too much. We do all the taxes ourselves."
"no, see abive"
"Nope. All cash, under the table, utterly illegal, doubtless morally reprehensible, and I have zero guilt about it."
"Our nanny asked us NOT to report any of her earnings to the IRS. We tried to convince her to ""go legit"" but she insisted on having a cash situation."
"Our nanny wants to show her yearly salary to build her credit, so she reports it as well as us."
"Our preference was to hire someone who would be paid on the books but given the short turn-around time we had to hire someone, we lowered that priority and unfortunately gave it up."
"She requested that she receive half of her pay reported (which the other family agreed to take on) and half of her pay unreported (which our family pays). The other family uses a filing service, but I don't know which one. Most of the nannies we interviewed did not want to be paid on the books. Those who did, also charged more, so there was a huge incentive for us to NOT hire them."
"The nanny is self employed and thus it treated as an independent contractor, reporting is her responsibility."
"The other family does, they are full time."
"This is as per nanny's demand, and it ends up much cheaper for us. We did report at the beginning including all the additional paperwork for SS etc. and it was quite a nightmare."
"We have started paying cash and report nothing to anyone. $24,000 annually isn't going to generate a lot of money for the government but will be a burden for our nanny, a single mother."
"we haven't up until this point, but now nanny wants us to do her taxes including withholding income taxe from her pay. It is very confusing and hard to understand."
"We offered her asking rate after taxes. If done again, I think we would have simply promised her asking rate before taxes and reported all earnings. We were trying to be nice and assumed that she would not want taxes taken out but never really clarified this. Reporting a portion of her earnings has been cumbersome and feels just about as wrong as not reporting at all."
"We plan to fill out a 1099 to give to our nanny, if this is what the question is about."
"We would, but our nanny requested that we don't."
$900/mth That's what she requested.
also her preference
as above (we use Breedlove to handle this stuff)
Found someone our neighbors used who is legally able to work in the US. Will follow what they do when we have to file next year.
If hours were more and more regular we would.
My nanny is illegal -- with out a ss# I wouldn't know how to report.
Nanny didn't want income reported.
Not required to report earnings for Au Pair coming through Govt. approved programs
Not worth the tax credit.
Our nanny declares her earnings as self-employed.
Report 40 hours
same as above
Same as above.
Same as above. We were happy to have someone who wanted to report the earnings.
Same comments as question about EDD (13 responses).
The agency reports earnings
We cannot report her earnings as she is undocumented.
We don't report earnings because the Nanny has asked this of us.
We don't report her year end bonus. We consider that a gift.
We have in the past - we leave it to the nanny to decide if they want to be paid by a payroll service or directly with cash.
We leave it to her to report or not.
we report 2/3s of her earnings. we don't report all because one of the families we share with could not afford the extra money. we only recently started doing any reporting.
We report up to the amount we can deduct - $8K
would like to report earnings so we can get use pre-tax dollars. Nanny is not willing to partake.