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XP for you working moms

hewinkedhewinked
in Working Moms
Anyone have a sitter come to their home?  How do you pay them?  Me and DH were thinking about this, as I'm planning on going back to work.  Then I did a little research and found out that you have to pay a nanny tax and various other taxes to have someone legally "employed" in your home.  I didn't know it was that involved, guess I didn't really give it much thought.  Any experience with this?
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Re: XP for you working moms

  • Mrs.McLovinMrs.McLovin member
    I don't have any answers to your questions, but I wanted to say hi! Your baby is so cute!
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  • hewinkedhewinked
    mclovin, hiiiiiiii!
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  • Mrs.McLovinMrs.McLovin member

    Hey! Here is McNugget at 12 months:

    20090817004.jpg picture by MrsMcLovin

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  • hewinkedhewinked
    Ahhh, love his hair!  And this pic is so cute!  Happy Birthday to him!
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  • AlisaSAlisaS member
    This is true. You need to pay taxes, do an tax form for the nanny every year and pay worker's comp.
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  • DallasHornDallasHorn member

    Well, you could pay under the table, but the draw back for you is that you can not then do dependent care flexable spending (this is where money is taken out pre-tax and then then get reimbursed that money by sending in your nanny's pay stubs).  This reduces your overall taxable income...so you pay less taxes :-)

     

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  • rnbride18rnbride18
    we have a sitter but I work night shift (I'm a nurse) so she only does maybe 20-25 hours per month and we just pay her like a normal sitter, no tax stuff
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  • Sam78Sam78

    rnbride, you probably owe taxes on your nanny/sitter since I'm assuming that you pay her more than $1700 in a year.  Here is the IRS info about household employees: https://www.irs.gov/publications/p926/ar02.html.  I personally wouldn't pay anyone under the table not only because its wrong but because it would be a huge mess if you got caught (and people get caught all the time).  Its not a big deal or difficult to do the right thing. 

    I also find this website to be helpful in calculating paychecks: www.4nannytaxes.com.  You sign up for free, enter the gross amount and it tells you what the net amount is.

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  • MarieandCharlieMarieandCharlie

    We also used 4Nannies.com to help figure out payments and perform background checks.

    At the recommendation of another friend with a nanny, we've signed up for Paycycle.com to help us with the tax payments, etc.  Don't forget to get a strong contract that gives both you and the nanny an out.  Some sample ones are available out there on 4nannies.com and also babycenter.com.

    Good luck!  It's tough getting used to all this paperwork and someone coming into your home everyday, but we have found that it's well worth it for our pumpkin :)

    Lilypie Third Birthday tickers Lilypie Second Birthday tickers
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