Do You Have A Nanny?

[Killroy1999]

Do you extend any benefits to your nanny like sick time and vacation?

Do you reimburse driving expense?

How do you pay your nanny? Under the table, W2?


We have a 20 hour a week Nanny for our 5 month old and she recently asked for sick pay, which we are having a probem with. When she is sick, we have too figure out a backup-plan to watch our son and that could really be like paying for the same work twice. Being it part time work, usually benefits are not

We are paying under the table because W2 sounds like a real pain in the ass and the would probably want more if she was paying taxes.

Daycare is sounding a lot easy and cheaper right now.

 

[bojangle]

Maybe look into this as an option.

We did day care, so I've got nothing.

 

[RightCoastBias]

Did the under the table nanny thing for 3 years, 40+ hours a week. She didn't get sick time, or vacation time. I was always afraid she'd ask, because I knew it was reasonable.

The preschool my daughter is in now had a 3+ year wait-list. Thankfully we knew someone and got in in 3 months. A long wait list is not uncommon for childcare in the bay.

 

[bruceflinch]

Maybe look into this as an option.

We did day care, so I've got nothing.

My daughter did the care.com thing in. High school and college. It was good for her. Not sure if that will be good for the OP.
Jessica was trained as a life guard and CPR as well. So besides Nanny to the rich and want to be famous in Blackhawk and Danville, she taught their kids swimming. She was well regarded and those fancy bitches would not refer her, so she wouldn’t get poached. :laughing
She did very well with it in SD during college. She graduated debt free with $15K in the bank.

Sorry for the thread jack
Good luck OP

 

[jt2]

Paying under the table is a really risky move. They can come after you for back tax payments at any time, plus fines. Don't do it.

 

[Abacinator]

If you're paying someone in cash for work, is it not up to them to report that income on a 1099 or whatever?

 

[SM610]

Tell her that if she wants sick time, the extra cost makes it necessary to report it for taxes so that you can deduct it from your taxes as an expense. Do you want cash under table, or sick pay? Cant have both...

The payer reports it on their taxes.and then gives a 1099 to the payee.

 

[My900ss]

Depends on your Nanny... what is she worth to you? If replacing her is a hassle and you can afford 20.5 hours of pay per week then the solution is simple.

Offer her 5 days of sic pay per year or 1 week. You I guess get at least 2 weeks vacation, so assume she works for you 50 weeks a year. That would break out to 0.1 days wages per week for accrued sic time. Every 10 weeks she would earn a days sic pay (4 hours).

If you like your employee and you want to get ahead of the request on your own term offer her 10 days of PTO per year.
Having a satisfied employee is often worth more to you than the cost of 40 hours of PTO she will accrue.

You shouldn't begrudge anyone the opportunity to negotiate a better deal for themselves. You can not agree and see where it goes, you can agree then replace her at your convince for a new and better priced option or meet her request and carry on.

 

[My900ss]

Tell her that if she wants sick time, the extra cost makes it necessary to report it for taxes so that you can deduct it from your taxes as an expense. Do you want cash under table, or sick pay? Cant have both...

The payer reports it on their taxes.and then gives a 1099 to the payee.

I just wonder if you are considering the amount of $$ that is being discussed? 20 hours per week is 4 hours per day. To what extent are you willing to go to battle someone over $100 or less? In addition the request is a reasonable request IMO to which the OP could say yes and could say no. Why the need to react aggressively, its not like the nanny is threatening the OP? I am curious about your tactics on such a small scale... hows that work out for you in your dealings with employees or personal contractors?

 

[SM610]

I just wonder if you are considering the amount of $$ that is being discussed? 20 hours per week is 4 hours per day. To what extent are you willing to go to battle someone over $100 or less? In addition the request is a reasonable request IMO to which the OP could say yes and could say no. Why the need to react aggressively, its not like the nanny is threatening the OP? I am curious about your tactics on such a small scale... hows that work out for you in your dealings with employees or personal contractors?

Maybe you're right, it just sounds like the "under the table" part is a significant advantage for the nanny. The sick pay is another significant advantage for her.

What is the proper negotiation here? No negotiation? Maybe that is it... Ive never had to deal with Family employees, only business employees. The OPs family is not a " business" and maybe i was wrong to look at it that way. It does sound like the additional expense is a consideration here. If its truely a small amount of money then i agree that its not worth the hassle. But it sounds like if she was sick, a substitute would aslo get paid, or the op would have to take time off to fill in.

PS - my employees were paid well, and we provided health care despite its enormous cost to us. We wanted them to have it. They were not given paid vacation time or sick pay, nor was I.

 

[CoorsLight]

What is a typical pay rate for a nanny?

 

[ABC]

What is a typical pay rate for a nanny?

In sf it’s around 20-25

 

[295566]

20 hours a week, part time worker making $20 - $25 under the table? Nah, no PTO for that.

The only way I could see even entertaining that would be if they're so amazingly irreplaceable that finding another nanny would be impossible.

At $20 -$25 an hour, I doubt that's the case.

 

[jt2]

If you're paying someone in cash for work, is it not up to them to report that income on a 1099 or whatever?

Not entirely. Yes, they must claim it, but you as the employer are liable for proper filing, and paying withholding taxes, Social Security and Medicare. Don't forget filing an I9.

If you don't do this, the employee (or anyone else) can report you. You'll not only be on the hook for back taxes and penalties. Not to mention the wrath of the IRS.

Think about that for a moment - if a former employee (which is what a nanny is at 20 hours a week, make no mistake about it) gets the least bit pissed off, they have the power to bring down a huge shitstorm on you.

Don't. Do. It.

 

[mrzuzzo]

Not entirely. Yes, they must claim it, but you as the employer are liable for proper filing, and paying withholding taxes, Social Security and Medicare. Don't forget filing an I9.

If you don't do this, the employee (or anyone else) can report you. You'll not only be on the hook for back taxes and penalties. Not to mention the wrath of the IRS.

Think about that for a moment - if a former employee (which is what a nanny is at 20 hours a week, make no mistake about it) gets the least bit pissed off, they have the power to bring down a huge shitstorm on you.

Don't. Do. It.

I'm not sure that makes sense because reporting the employer would also make the nanny liable for taxes owed, and the employer is not liable for withholding taxes of contractors at all.

 

[JesasaurusRex]

I'll comment later as I'm busy but my wife was a nanny for a number of years both under the table and 1099

 

[Killroy1999]

Tell her that if she wants sick time, the extra cost makes it necessary to report it for taxes so that you can deduct it from your taxes as an expense. Do you want cash under table, or sick pay? Cant have both...

The payer reports it on their taxes.and then gives a 1099 to the payee.

According to Care.com, Nannies are W2 because you direct their work. 1099 would be a contractor that you don't dictate how they do their job. W2 is a pain in the ass because of payroll. Care.com will help you with payroll but its a ~$147 a year or $37 a month.

She is currently making $22 an hour and I thought a 2 day bonus a year would be better than her getting paid to leave us high and dry.

I'm not with my sons mother, so she pays the nanny and I reimburse her, so I don't think it is my responsibility to pay taxes. So, I'm not going to ask about it.

The nanny is good and she likes her job, but I'm not afraid to loose her because my son's grandma on his mothers side can always watch him. Grandma does not work.

 

[sidewazzz]

So I don't offer sick pay, had three nannies in 5 years about 70 hours a month. the 1st two went off to college out of state so I knew it was coming. All three have been great and off the books per say per our agreement. I really leave it up to them if they want to file taxes or not with the funds. I pay them with checks and we always have a time-cards. Seems to be working out very well.

 

[mlm]

Paying under the table is a really risky move. They can come after you for back tax payments at any time, plus fines. Don't do it.

Amazing how freely people are talking about tax evasion :laughing

 

[Bubba_s]

Amazing how freely people are talking about tax evasion :laughing

That's what I was thinking...