I posted a while back about the nanny job that started out ok, but soon turned into an illegal-wage, overworked, bad situation. I was paid under the table by this woman ($550 every 2 weeks), I know it was stupid to not be on the books, it was my first time ever not going by the books and now I am regretting it. She sent me a text message tonight asking for my social security number for taxes. Taxes were NEVER discussed, she did not take taxes out of my checks. Do I need to give her this information? My husband and I have already done our taxes for 2011 because I knew I was not getting a W-2 from her, obviously. Will I get screwed if she puts me down as a "household employee" on her taxes? Will I end up owing taxes? If I don't give her my info could she take me to court? I am so pissed off. Thanks in advance for any advice, I'm not sure what do here.
125 comments:
First did you receive cash or checks?
If cash, I would not give her any of your information and quit. If she gave you checks then she can prove she paid you. you will owe back taxes plus fines, she will owe a lot more but you can just claim she said she was paying your share of the Medicare/ssn. That way you only pay income tax owed.
Um. You need to find out if she is paying you W-2 or 1099 income. More than likely it would be 1099. Because if she pays you a W-2 then she will also be penalized for not taking taxes out. it would actually be very stupid of her to do that. 1099 income would be your best bet. And you should not be upset about having to pay your taxes. If they were going to take them out from your check with W-2 wages or it gets taken at the end of the year with your 1099.
Do you have kids yoursef? How much are you expecting your 1099 to be? Depending on the amount I can have a better idea if you will owe or not. Also if you take 1099 income you can be a "sole-proprietor" and take allowed expenses. You will have to pay a self-employement tax though and this is a % of your salary.
I need more information from you before I would be able to advise whether you owe taxes or not. I pay my husband a 1099 of roughly $6,000 per year. We file separate returns. My husband gets a refund back because he is able to claim his child. And his self credit. The self credit is I think $3,200 it may be $3,600. But this is a credit that everyone gets on their 1040 form. So yes, you need to give her your SSN. If you don't you will really be screwed because if you in fact do owe in the end you will now have panalties, fees and interest. So I would advise you don't do that.
I have a Masters of Accountancy, btw
also you can't just get away with not paying your taxes. Your employer wants your SSN because they will be sending in their 1099 payable amount to the IRS. These forms are due at the end of this month. so they will still report that they paid you and they will deduct the amount from their taxes. By not giving them your number you are also interferring with how they are going to file and that you can't do either.
I have a similar issue. I was told when I was hired "don't worry about the taxes we'll take care of it" Now they are claiming me for 7500$ a year on a 1099 & they said I will have to take care of it myself if I owe. If i would have known this I would of never taken the job! I am being payed min wage to take care of three children. I thought they were paying the taxes! I know better next time! BUt im freaking out about what I will owe because I don't have any savings. Phoenix would you know a estimate what I would have to pay? In New York. Thank you!
OP here,
She told me it is for the childcare credit. She paid me with personal checks. It is my understanding that a nanny is considered a household employee and therefore they need to be furnished a W-2, not a 1099. I do not have children myself.
I told her that if she wanted my information I would be amending my returning and filing form 4852 that would require both of us to pay the taxes we owe, 7.65% as opposed to me paying the whole 15.3% self-employment tax, as I was not self-employed. I understand we are both in the wrong here, I am just annoyed that she is basically wanting to have her cake and eat it too by not paying taxes this whole time but still trying to get the credit.
My wages from her are about $7000.
I am not upset about paying taxes, in fact in the interview I proposed being on the books but she told me she could not afford to do that blah, blah, blah.
Taxes were never discussed after that. She has not mentioned doing a 1099, I asked last night if she was giving me a W-2 and she said no (that's when I told her I would file the form asking her to provide me with one), she said she was simply trying to get the childcare credit. Who knows if this is true or not. Is she obligated to tell me that she's doing a 1099?
Dear OP,
I am a Canadian nanny, however, I have been in a similar situation. The family I worked for paid me personal cheques, and even deducted taxes from it, stating that I was a household employee. I was okay with this.
However, when it came time for taxes they didn't claim me at all nor give me documentation. What ended up happening was, I had to contact the Government to state that I did not receive the form, and that my employer deducted taxes and pocketed it.
Due to the fact that it wasn't a huge amount, the Government stated that they were conducting an investigation but in the end did not do anything at all.
To top it off, right before quitting, I crashed the family van when I was driving on my time off! And they had always said I was on the insurance, in the end I wasn't on the insurance so they withheld my last pay cheque to cover the crash!
-Self Employment can suck sometimes!
You cannot be 1099'd. If that is what she gives you, you can report her for doing that.
Since your wages weren't a huge amount, your tax hit may not be too huge either.
I would contact HomeWork Solutions (owner Kathy Webb), or one of the other nanny tax prep companies and ask them for info. You may also need to hire a tax adviser of some sort.
Thank you, Tales. I will look into contacting them. I've read over and over again that you cannot 1099 your nanny, so I will absolutely report her if she does that. I just don't know how strict the IRS is about connecting the dots between her taxes and mine if she puts my SSN down as her childcare provider to get the credit. If her or I were ever to get audited, it would be a huge headache, so she's pretty much shooting herself in the foot as well as me. I can't figure out if she's just plain stupid or just doesn't care.
yes she can give you a 1099. 1099 is a contract employee and means Misc Income. She can also give a W2without taking out taxes.
OP if you have 2 children you will be getting a child tax credit and your credit. You may not be eligable for the entire credit because you wouldn't have made enough money.
Ok. I am going to take 7,000 as a 1099 and a W2 and see which one will be better for you. I am not going to be including any dividends or interest earned or lost. I am also not going to include a Schedule A if you are eligable. Just want to see your wages total.
It is ok for an employer to not take taxes out during the year. What ends up happening is that they will pay when they file just like you will.
Give me a second
the IRS is very strict about connecting the dots.
7000 isn't that much..pay the taxes. If you need to I think you can do payments
It's not worth it to risk it..and info think eventually it will catch up to you.
Call the IRS and ask them!! Always better to be on the up and up.
Weren't tax forms due by jan 31st? That she should have given it by?
ah OP I am so sorry she did this to you! I had a job at a church and they 1099'd me and I hate that because I am responsible for double wehn I provided them with the work. I should really have asked for it to be done differently as it was a weekly thing (I could understand a once or twice thing) and now I owe the money. Stinks when things happen! Good luck!
yes tax forms were due Jan 31st. Private employers are sometimes a little behind. As long as gets them by April 15th filing date there is no reason to be concerned
your employer is seems was trying to be able to deduct childcare from her taxes, a child credit is something different and everyone who has eligable child dependants will get it
Phoenix, it is ILLEGAL for a household employee to get a 1099 form. The **employer** who does that is shooting himself or herself in the foot.
Thanks for your help, Phoenix. I did just speak with a rep from HomeWork Solutions, as Tales suggested, and she also told me if I get 1099'd I can report it. I would initially probably have to pay the taxes but in the end it is likely she would end up having to pay her share.
http://www.4nannytaxes.com/blog/2008/02/do-not-1099-your-nanny-word-to-wise.cfm
My (former) employer said she was not planning on giving me a W-2 nor a 1099, she just wanted to claim me as childcare provider for the childcare tax credit.
http://www.irs.gov/newsroom/article/0,,id=106189,00.html
^^Number 10 clearly states that the household employer should have been withholding taxes, I have seen this written everywhere when looking into the childcare credit. Like I said, either she's dumb or doesn't care.
Looks like I will amend my return, report the wages, and she can have fun paying her share of taxes as well.
Unfortunately I can't help you out here. I don't think you have to give her your social security number. That wouldn't make sense. I would ignore her if I were you.
My employers (first time being a nanny) told me that they were paying my state and federal taxes for me instead of withholding. I thought I got really lucky on this deal. My W2 came, and they paid NOTHING. I ended up owing $1,700. Don't let this happen to you. I made about 20,000 so if you only made 7,000 you probably won't end up owing that much. Probably a grand.
OP it is a common misconception that Nannies have to be 1099'd. This is not so. You need to have a w-2 form completed and your employers were supposed to deduct the taxes from your paycheck. Since they didn't, then they will have to pay out of pocket as well. Ha to them.
Next time if you do work off the books, I would only ask for cash payments. Since you received checks, then there is a paper trail and it will be hard to say you never worked for her.
I wouldn't give her my #SSN though. Maybe she needs it for something else. I would just ignore her for now and take a wait and see approach.
Nice title for this post MPP.
I looked at the IRS website and even if I did not give her my SSN, she can still claim "due diligence" by saying that she reached out to me for my information and she can still try to get the credit. She has all of my info except for my SSN, so I'm sure the IRS would have no trouble tracking me down.
I am clear on the 1099 issue now, I understand that if she gives me one she will be reported.
I just sent her another e-mail telling her that if she claims the credit and refuses to give me a W-2, then I will amend my return, report the wages, and file a form that would require both her and I to pay the taxes owed. I'd rather be safe than risk a future audit. They make six figures and have 5 dependents, so their risk for an audit is higher than mine, and if they got audited I know sure she would have no problem throwing me under the bus with her. So, we will see what she says. I am sure I will get a nasty e-mail, but she doesn't really have a leg to stand on.
a Statutory employee means the you have medicare and ss tax but not fed and state tax withheld
your employer does not need to withhold federal income tax from you. Unless you specifically request it. But they must pay social security and Medicaid taxes. She may get penalized if she didn't take these out when she paid though. Though she can back-out of your check amount and re-state your gross income before taxes. So she can get around that .
I was trying to come up with a way that you could claim a 1099 instead, but I couldn't think of one. That would have been much easier.
your employer will need to send a copy of the W2 to the IRS and file a Schedule H
Ok. Now I'm going to be doing your figures in a minute. i was spending some time trying to find you some loopholes that wouldn't get you in trouble. Post results soon :)
Phoenix -- Thanks again for your tips. I am just about to head to work in a bit so if I don't reply until tomorrow I'm not ignoring your advice! Basically she is simply responsible for social security, medicare, and possibly unemployment tax (aka the "payroll taxes" I've been reading about, correct?). I know I read somewhere that she is not necessarily responsible for federal income tax.
I flat out asked for a W-2 last night (after she asked for my SSN for the credit) in which she told me she was not sending me one. The part of me that tries to see the good in people is hoping that she was going through her taxes on Turbo Tax or something, saw the childcare credit and thought "Oh, well that applies to me!" and did not realize the possible ramifications. Am I right when I say that if she files for the credit without having paid the taxes that she is setting herself up for a potential big fat audit failure?
I know that one of two things will come of this:
1) She will e-mail me back wondering why I did not claim the wages on my own taxes and pay the 15.3% myself (no way in hell I would do that while she gets off scot free). To which I will send her this information from the IRS:
Social Security, Medicare, and other fees: If you pay your nanny at least $1,500 in wages in a year, you must also pay Social Security and Medicare taxes for her. (If you don't do this, you may be subject to legal penalties and you won't be eligible for any childcare tax benefits on your federal income tax return.) You deduct half the Social Security tax from your nanny's pay and pay the other half yourself.
or
2) She realizes that having to go back and pay those taxes will cost more than the little bit of tax credit she might get from the childcare credit and she will just drop it and not attempt to get the credit. But I'm sure she will somehow make me feel like I am screwing her over and being unreasonable. She'll get over it.
Anonymous -- if your employer gives you a 1099 you should seek out the help of a tax professional and report it.
http://www.4nannytaxes.com/blog/2008/02/do-not-1099-your-nanny-word-to-wise.cfm
So I was bad and worked off the books last year I was really desperate for work. Anyway. I worked for a few different families and made a little over $6000.How do I report that?
Wow. I am amazed by the stupidity here.
You need to claim what you make. Always.
To OP: it was foolish of you to lie on your taxes. You need to claim all income. Don't blame this on your employer. It is your fault.
To Charis: you need to contact the IRS and tell them you made an error, then file again.
I really am amazed at the dumbasses here.
Ummmm nope, my employer is also completely guilty. I never denied any wrongdoing on my part. I know I was wrong, but both the employer and employee are guilty here and if I'm going down, she's going with me.
OP: do exactly what you are doing and demand a w2 because if she applies for the child tax credit, the IRS will automatically amend your return without you having to and you will be penalized for not reporting the income. Yes it was wrong but at the same time she was wrong too. I would no longer work for her of course and I would use this as a learning experience. My mother had a parent do that to her as well.
OP, I just want to say that I'm really impressed that you're taking the necessary steps to rectify this situation and you're going to pay your back-taxes. Kudos to you. Yeah you made a mistake, but you're fixing it. Most people would just shrug it off and not care.
To Miss High and Mighty (aka: "dumb")...there is a difference between ignorance and stupidity. Stupid people know what is wrong or dumb and they do it anyway. Ignorant people don't know what they're doing wrong and so when they do it, they want to change and make it better. In other words, they learn from their mistakes so they are no longer ignorant. I don't see any dumbasses here, but I do see one big bitch. (YOU)
Sorry. I didn't realize at first that I couldn't report the taxes on my own just as additional wages. I know that now , and I want to make it right so I asked. I do plan on talking to an actual tax person.
Hi,
Ok so if your W2 is for 7,000 you will be required to pay $333.00 tax to the IRS. I don't know what the state will be. I also don't know what your other income is. It will be applied against this amount and you could owe more or less. But as it stands for this amount you will owe $333
Your employer will be required to give you a W2. You can't get out of it
OP, I'd strongly advise you to keep all tax-related correspondence to emails - mostly so that you have a written copy. Perhaps tell your employer that you want to focus on the kids at work and not tax stuff, so email is better for you.
To further confirm, you cannot legally receive a 1099 (nor should you want to - while easier, at $7000, it would "cost" you an extra $549 in taxes that your employers should be paying) and you should only receive a W2, although you can amend/refile your taxes without it. (There are forms - yay.)
You are responsible for your state and federal income taxes, which you can pay directly to the IRS - household employers are not required to without those. However, household employers ARE required to withhold medicare/social security (FICA) taxes, which are supposed to be 7.65% from each of employer and employee. Since she did not withhold them from you, she will need to pay the full obligation. I've known people who have worked overtime hours without additional pay to "payback" this sort of error, but you are not obligated to do so. I suppose that they could try to sue you in small claims over their "accounting" error...but since you have emails that it wasn't an accounting error, but rather an attempt at tax fraud and they were paying you below minimum wage, I'm willing to bet that they would let that $550 go.
Good luck. Seriously though - cover yourself by paying income taxes on the $7k, insist on a W2, and try to keep all related correspondence to email.
takenadvantageof
you have a dfferent situation. 1099 income will allow you to be able to take expenses for "your business" you will be required to submit a schedule c.
If you use your own car you may deduct your miles. If you buy anything that is directly related to your "business" you can take that as well. You could in fact report a loss in your business and get a refund.
I would need more info, but you would be required to pay a self employment tax too.
my advice is, even if your employer doesn't give you a w2 have your tax guy make one for you using your employers ssn and report it yourself. don't wait for them
Wow...after reading all this mumbo jumbo it makes me very relieved I work under the table. All this deduction, forms and the like are giving me a big headache. I just keep my work simple, I watch the children for such and such hours per week, they pay me in cash and we both go happily on our way. I would hate to fill out forms, keep track of deductions and stress over who pays what taxes. This is for the birds.
Mrs. Nanny Gina -- I was working "under the table", it wasn't until my former employer decided to try and get herself a childcare tax credit that this all cropped up. You can never be too careful and you really don't know who you can trust. Beware.
Thank you everyone for the advice, especially Phoenix for doing all those calculations and explaining things to me, I appreciate it. And thank you Miss Mannah for the kudos, I feel like an idiot with all of this, but I'll make it right.
No word from former employer yet, I am a little concerned she will attempt to get the credit without responding to me, so I guess I will go ahead and amend, re-file, pay the taxes, and let the IRS know I need a W-2 from her. Thanks again everyone.
Miss Mannah, I don't give a shit if you think I'm a bitch. OP took this job with the intention of not paying taxes on what she earned. it's just wrong, and I stand by my opinion. If them employer was wrong, and suggested working under the table, she should have walked.Getting into semantics with me is foolish. Dumb, ignorant, stupid, dishonet, unprofessional. It all applies. OP filed taxes knowingly withholding earned income. And you are sticking up for her?
to Nanny Gina: you disgust me. You are the reason that childcare workers are disrespected.
"WHat happens if your employer wanted you to handle the taxes yourself?"
Your employer was lazy and wrong-- you cannot handle the taxes yourself. In your next job, insist that you receive a paycheck with a paystub (a note stating gross pay and itemizing all deductions from it to equal the net pay amount). Go online to read the 2012 household employers guides for your state and the IRS (the paper copies can also be requested for free) to see what the forms must be filed at the start of your employment and what/when taxes must be paid and reported. That way YOU will know when the employers are not doing what they should. At the start of your employment, you should have been asked to provide your SSN and documents verifying that you are legal to work in the US (like passport/driver's license), as well as fill out a form that will generate the W-2 and determine the amount of exemptions for tax deductions from your paycheck.
dumb and dumber said...
I have MissMannahs back. If she thinks you are a bitch...then you are one
To clear things up
When you employer gives you a W2 they are not required to take out federal or state tax. When you first start working for them they are required to have you fill out a W4. THis discloses the number of exemptions and how much you would like deducted. A nanny should be W2 income. If an employer pays their nanny a 1099 they are NOT allowed to complete a schdule H that allows them to take the childcare deduction, unless the child is in a daycare. Your employer will more than likely qualify for itemized deductions and this is apart of that. 1099 income is tricky
The difference is, a 1099 means you are a contractor and that you get to decide what work you do. W2 income means you are an employee. ALL nannies should be W2 income because you don't get to decide what you are willing to do for your job.
Your employer is required to have you complete a W4 within the first 48 hours of employment
The thing about taxes is, they can be fudged, manipulated, and are open for interpretation.
what is really stupid of your employer is that she is responsible to pay your portion and her portion of social security and medicare taxes. She may be backbilled for this because she didn't take them out and pay them as she paid you. Also your employer will not be eligable to take her childcare credit because she didn't pay into social security. She is double fucking herself over. Also she paid you more than $1,000 so she was supposed to pay unemployment insurance to the states.
So look on the bright side of this...she really got fucked. She would be better off not reporting it because she is going to get nailed and not even be able to claim that credit when its all said and done
OMG - So timely - I just submitted my next column about nannies and paying taxes! Phoenix - you really know your stuff Lady, and I interviewed a Tax Accountant as part of my research!!
Yea, my employer is getting screwed even harder than I am in this situation. And she did it to herself! As I expected, she is making me feel like I am being unreasonable and pulling the IRS into this for no reason. Ummm, no, when you try to get the childcare credit using my SSN, YOU are bringing the government into this, it is no longer under the table. So, oh well!
Phenoix, thanks from all of us who wonder about all this tax stuff. Even though I've paid full taxes for my last two nanny jobs it's still tricky and hard to understand all the ways it can get messy. I've blatsed you for some of your comments in the past, but this info and topic is so important to us nannies. I am asking you to send a guest column about why it's best to pay taxes and the ways you can go about it. After some similar bad experiences when I didn't pay them, I'm a believer it's in my own best interests to pay taxes, & in the end it's the law. Like my 5th grade teacher said whenever we asked, "do I have to?" The only things you have to do are work, pay taxes, and die.
Oh thank you! Yes, I had to sit through many tax classes when I was getting my graduate degree in accounting. I'm actually going to go back to school to become a pharmacist. I was thiking about sitting for my CPA but I don't really enjoy accounting all that much. It was my second choice. So back to school I will go. I've been working for a pharmacy for 8 plus years in finance and as a pharmacy technician. I LOVE the pharmacy. I just ate that up. I was a really good tech too. The pharmacists trusted me to even give consultations to patients. I know my drugs. My true passion. SO if you have questions about meds I can also help there too. But of course that would always need to be followed up with a doctor and pharmacists can tell you what a drug does and what it interacts with, someone should never just start taking medication without a doctor approval as we can't diagnose
I would be happy to submit an article to this site. I would need just a couple days. I will make one section for nannies and the other for employers who hire nannies. I will leave out the state tax guidlines though
Sadly our country are money grubbing assholes that take all of our money all the time! It makes me sick. Yes, we all must pay taxes and the thing about it is, if you take our more from your paycheck you get paid a little less, but at the end of the year you won't owe as much or you many even get a refund. So it's always a toss up, pay now or pay later...either way you pay
and for the record. If anyone can get away with receiving money and not reporting it. Go for it!!! our gov't is a pile of shit and they cheat you out of EVERYTHING. If you can cheat them back... more power to you. Most CPA's are known to be the biggest bullshitters around. They save you money, not give it away. Billionairs don't normally pay taxes at all because they have ways to get around it and go through every loophole known to man kind. If you can find someone willing to pay you under the table, don't be rightous and report it. You will screw yourself. The gov't doesn't have a right to demand money from anyone when they themselves are garbage
I agree with you Phoenix. Paying taxes is for suckers.
I am really embarrassed by the childcare providers on here who condone not paying taxes. It makes us all look like unprofessional, lazy people who are unamerican.
Phoenix, if you don't like it here, get the hell out. You don't know how good you have it.
You probably voted for Obama. I don't care how many years you went to school for or how much you know about taxes and drugs (I'm sure you're an expert on drugs, as you look totally baked in your pic.)
Actually, I take that back. You're probably one of those that don't vote at all. Loser.
I did not vote for Obama. That motherfucker is the worst thing that happened to the US. And no i don't like it here. The gov't is a group of greedy bastards who don't give two shits about the working man. If anyone thinks that paying taxes is a good thing then by all means pay mine as well. This country rapes its citizens and then gives handouts to illegals. Out of all the nasty things that have ever been said to me. I think saying that I like Obama was the worst.
I do vote actually. I voted for McCain. And I haven't been of voting age for very long. Don't speculate because it makes you look like an idiot. I do know lots about drugs. Both pharmaceutical and street. That is call being a well rounded intelligent person. I study EVERYTHING. And it is important to know what illegal drugs will do to the body if you are going to consult patients about the medical risks involved. Also I don't smoke weed so there is no way "I can look baked." I have a medical marijuana license because my husband smokes so i wanted to cover my ass legally. And having large eyes will make people look drunk in there photos. I've always had that look even as a little kid. You need to stop being so jealous of people who are more successful than you and put them down when it is clearly not warranted. If you don't like my advice then don't read what i have to say. Be careful, you really don't know the full depth of who you are insulting. Things can go very wrong for you very quickly
So now Phoenix has stooped to threatening people. Why is she not banned from this site?
"Seriously" you are the biggest dumbass I've ever seen. I laughed my ass off when I saw the "you probably voted for Obama" comment. Phoenix said something along the lines of advising people to NOT paying taxes...does that really sound like something an Obama-supporting bleeding-heart liberal would say? Pull your head out of your butt and pay attention to what is going on around you before commenting!
BTW, Phoenix...9 times out of 10 I agree with you but in this case I just really can't. I support paying taxes 100% and in fact I want taxes raised by a hell of a lot. Most European countries pay a lot higher rates than we do (the successful ones like Norway and Sweden anyway) and I think we could learn a thing or two from them. While Obama has made some mistakes in office, I do not think he is the "worst thing that has happened to us." I think looking back, he will be seen as a successful president and I fully intend on voting for him again this year. Looking at all the Republicans running this year makes me shudder and if any of them actually win the presidency, I will seriously consider moving to England. (particularly Newt)
*endrant*
PS: I look forward to your guest column.
Why Miss Mannah, you don't want a Lunar village??? (snicker snicker)
LMFAO YES I FOUND IT!!! lol awesome@ check out Phoenix! hahahaha
Phoenix, I appreciate your clarification on the nanny taxes. However, I think Rebecca said SHE just submitted a column in the subject so you don't need to.
Seriously: how do you know Phoenix doesn't have a Master of Accountancy? I think insulting each other doesn't contribute to the discussion of the OP's question. Politics doesn't either.
I am a nanny who works under the table as many in the profession do. I don't for a minute believe that all of you nannies pay taxes. I know because the majority of us do not and shouldn't have to.
Uncle Sam should not be involved in an agreement between two adults. If I choose to cut your lawn every week, and you choose to pay me such and such $$ for doing so, then we should be able to make a private agreement between us. Same goes for if I scrub your toilet, watch your kid(s) and/or go to the store for you, etc. All this domestic stuff is between two parties ONLY and Uncle Sam needs to stay out of it. Taxes are for corporate jobs..not domestic.
Lindsay is right. Taxes are for suckers. And Phoenix you are very pretty so screw the haters on here.
Phoenix is right. If you pay the Nanny taxes, you will only be funding other illegal activity. For example, the Dream Act now will give Financial Aid for Illegal Immigrants to go to college. How sad, when a lot of American families cannot afford to send their own children to college. Also, Illegal Immigrants can cross the border, get preggos, then collect Medicaid, Food Stamps, Welfare, Section 8 Housing, WIC, etc. while many tax-paying parents must pay premiums on their own health insurance and must pay their own rent.
So all this bragging about paying taxes is so dumb. Why pay for others to enter our country illegally and collect?? If you get an opportunity to keep every cent you earn vs. giving it to some person who is not even legally supposed to live in this country, then take it.
Phoenix is flat out lying when she says she is trusted enough by the Pharmacists she works for to give consults to patients. I have been a PIC for 66 years, have my Pharm D and a masters in Business. It's a delony for a tech to give any patient a consult! 10 years in prison if she is telling the truth (and she 100%is isn't!!), the pharmacist over her would lose their license to practice, the patients would be able to sue the company for millions and the company would be opening its self up for numerous lawsuits! Shame on you for lying phoenix! Shame! If someone who reads your false comments about what you are allowed to do at work and reported this to your boss, not only would you be fired with due cause but you would have opened the door for the government you hate so much to come in to your life in ways you've never imagined! If I EVER found out one my techs was lying and endangering my living as well by doing so, not only would I fire her, but you wait until you need references to find a new tech job! You better believe I'd be calling your past references too to let them know! I didn't go to school for 8 years to obtain a doctorate and a 120 grand income for some lying little tech to take it all away. You are so lucky I don't know which pharmacy you work at. But don't you dare think I can't find out. Smart having your picture right beside your admission of a felony.
Excuse my typographical errors, im using my phone.
Yes, because breaking the law and being a tax cheat because "Everybody does it!" and "I hate the government!" and "I don't want them using MY taxes for xyz!" is a terrific idea, and definitely those excuses will make the IRS decide not to fine you for being a tax evader.
If you don't like the way the government is run, then stop sitting down, bitching about the lousy crooks and cheating on your taxes and stand up for your beliefs. Make your voice heard. Vote. Look up the names of your congressperson and your senators and write/call/email them when you don't like their voting record.
Whining is not effective. Don't you all teach your charges/kids that basic fact? If you want changes, get motivated to make change happen!
I talk about The Fair tax on here a lot when the subject of taxes comes up. It would charge a consumption tax as a complete replacement of all federal taxes that now come out of your paycheck. That means ANYONE making a purchase of ANYTHING would pay taxes. Illegal aliens, naturalized citizens, native born citizens, foreign visitors.
If you feel angry that people who are not legally in this country get benefits, start speaking up about the fair tax, because it would tax the people you feel shouldn't be here!
So if you hate the system, take action. And as much as I <3 ISYN, posting here is NOT taking political action.
To Anom:
Do you really think waitresses report all the cash tips they make? or teachers who tutor on the side report that extra cash? hahahahaha
Anywho, People who don't report lose out on benefits and people who do end up losing out on a ton of extra money. It's a give and take, everyone loses something. I'm not naive enough to believe that people don't do everything possible to find a way not to pay taxes on one thing or another. Its like people who drive up to NH from MA so they don't have to pay a sales tax.
I just know when I start my career and being rolling in the cash :) I'm gonna hire myself a great CPA...just like Warren Buffet
I just got a W2 from my employers who paid 6.5 % or something like that. I kept money aside for the other % for estimate. My question is on a W2 for nanny's box 16 is filled out for state wages- shouldn't box 17 state income tax have anything in there as well?? Turbotax asked me about that.
Net hourly wage is $___. This includes $___ in “take-home” pay (to be paid in regular checks), plus the Nanny’s share (5.65%, or $____) of Social Security/Medicare tax, which the Employer will withhold .
This was what was in our contract-this means they didn't pay fed or state then right?
I laughed so hard @ Phoenix saying that the pharmacists "trust" her enough to let her consult with patients. I call BS - it doesn't matter how much they "trust" her, it's called pharmacy law. She's really a piece of work - felonies, threatening people, making nasty remarks regarding young women's looks, etc. I would laugh @ every post she makes if she wasn't so pathetically sad.
Tax question,
If I am understanding you correctly, you received a W2 that states the only taxes withheld from your check (and paid to the IRS by your employer) is the Social Security/Medicare - and that they paid in their portion as well. Federal and State Income taxes are the EMPLOYEE'S responsibility, so unless you had them withheld from your check, you will need to make payment from your funds to the IRS. Some families/nannies do negotiate a net rate, where the family "grosses up" but that is inadvisable for everyone and not fully legal. Most legal agreements I know of mean that the nanny will receive a W2, the family will pay employer taxes, the family can claim the childcare, and the nanny will be responsible for her taxes - and eligible for things like unemployment, if she ever needs it.
Sites like 4nannytaxes.com have free calculators to help you figure out how much you should be setting aside per check.
There are also usually a lot of free clinics for personal tax help that you might find beneficial. This would allow you to bring your paperwork in and have a professional (in your state) look at what you have an advise you. I've seen them offered at local libraries in a couple of cities I've lived in, so would suggest starting there.
Pharmacist,no I'm actually not lying. I used to work in a clinical call center. And retail, I've had many pharmacists allow me to answer questions when were busy. Sometimes I did others not so much cuz I could lose my tech license. And the RPh would be in trouble as well. One RPh let me answer a questions regarding the difference betweem omeprazole and aciphex. It happens, its not supposed to but it does. Working in the clinical call center was where I learned most of my shit. So no I'm not flat out lying. In fact I don't lie. I tell people the truth whether they want to hear it. I guess I just shocked evryone that I was actually intelligent
Looks like Phoenix is a little scared to have her pic and profile show up on comments now that she's been called out on a felony.
You know, I have to say that this "under the table" practice is more common than you think.
Every single job I have had, families would prefer pay me with cash or personal check. I've asked before if they would rather pay me on the books, but no one wanted to. Some would say it was better for me. I always felt marginalized for not paying it.
The issue though was that back the, I was out of status, so it would worry me whether anyone could figure out I was Illegal, so I would try to stay under the radar.
I think lots of families like hiring illegals because they ca use and abuse without repercussion.
If the employer pays the nanny's share of the FICA taxes, that piece becomes taxable income for the nanny and should be reflected on the W-2.
So you are saying the 5.25% or whatever it was- was only relevant to ss and Medicare and nothing else?
Next thing Phoenix will do is go anonymous or change username after being known as a felony and a pathological liar. She started out good and then started showing how unstable and bipolar she is. Get help Phoenix!
Haha! I loveeee that she got called out on her crap and has no defense other than to remove her picture. It seems like everyday I log on here and see more of her insane comments. But admitting to a felony and threatening someone all on the same thread? Priiceless!!!
Why is it that us Nannies have to be responsible for paying certain taxes ourselves, but if we worked up the street at Burger King, etc...our employers would be 100% responsible for taking our taxes out? Isn't being a Nanny a legit job?
I don't need the headaches and stress from worrying about taking out my own share of taxes, etc. I just get paid in cash and go on with life. It's too complicated to bring in tax issues for babysitting children. Like someone said, it is best for corporate jobs and not household positions.
Um. I actually didn't remove my picture stupids. I was on a different computer. And like i said, I could have lost my license so I didn't help with new med consults. Mostly just pill ids and alternatives in the same drug class. And it was always when the pharmacist asked me to. I would never just start doing that. That would be HUGE trouble. There was one retail location that i refused to work at. I was basically a tech that would get called into stores to cover when others were gone or they were busy or when they needed me train people. We have one store that I nearly almost got fired at because I was screaming at the pharmacy staff. They would have their C2 cabinet open all day. They would never re-lock it. And they had bottle of oxycodone 10/325 sitting on the counter when they were filling other meds that were not percocet right along side of it. Talk about liability, then I found out that not only were they keeping the safe open they weren't keeping their C2 log up to date. This was actually the same store where the pharmacist told me to consult on a new drug and I refused to do so. Bad news all over that one! i never went back. I wasn't going to be in that liable of a position. They are doing better now though since I reported them to the DM.
Course the point is moot now since I stopped interacting with patients/members. i work strictly in the finance dept of the top pharmacy company in the country. And I am so going to go back to school to be a pharmacist. I love it and I love helping people.
Karina,
to answer that question. You can ask your employer to take out your federal and state taxes from your check. You will specifically need to request they do that since they are not required to. Your employer is only required to pay yours and their share of the Medicaid and social security tax.
If you want them to take out your fed and state taxes you will need to fill out a W4 form indicating the amount of exemptions you have and % of tax. Your employer would then need to send that to the IRS. But you will be paying your fed & state tax regardless if your employer deducts it from your pay or you pay at the end of the year. Either way you are responsible for that tax
I'm not a Newt supporter, butI think the Lunar Village is a great idea! It will have no roads, schools, hospitals, military, fire or police depts. No social security or Medicare. All those who don't want to pay taxes to support these things can go live there.
what I find really stupid is that the US is the second country with the highest rate of taxes we have to pay. Japan is first. This is so stupd because one of the main reasons we weren't to war with Britian was because of the amount of taxes, and tax without representation. And yet here we are paying taxes that don't do anyone any good.
My mother lives in a VERY expenseive neighborhood and her property tax is roughly 10k a year. My step-son goes to school in her neighborhood and his school has the gaul to make me pay them to enroll him! Its a fucking public school! I have to not only pay to get him into school but I am charged if he wants to participate in PE and all the parents are required to buy the teachers supplies throughout the year. E'squeeze me? The property tax that people pay is supposed to cover all this!!! Where does this money go? Oh, that's right... in my state it goes to support the illegals. Who don't even get in trouble! I've called INS and Sheriff Joe countless times trying to get my step-sons mom deported. She is using a false SSN to get food stamps and cash assistance. So that is why I don't support paying taxes.
Sorry, mini rant
Karina, household employers are not required to withhold personal income tax (PIT) so they may decide not to even if you ask them.
I stopped withholding income taxes from my part-time household employee paychecks because California instituted a $350 threshhold last year for quarterly PIT tax payments. If I withhold more than $350 per quarter, I am then required to submit monthly PIT payments or pay a penalty, with interest accruing daily. I will not pay my bookkeeper more money to do monthly payments just because the state wants its money sooner. The state should make it EASIER for household employers to comply, not more onerous and costly! We are one of the few household employers in our neighborhood that follow the law and pay our employees on the books. The rest are too cheap and can't be bothered but we do it to protect ourselves and our employees. It also allows our employees to file for unemployment and become eligible for Social Security benefits in the future. Our homeowners and workmen's comp insurance also covers our employees in case of an accident. Homeowners insurance will NOT cover a housekeeper or nanny's accident if they are not legal employees! Pay legally now or pay much more later!
I don't know how I would be the same person as Jedd and Manhattan when I have to log in with a google ID, which I set up because someone was using my log name and posing as me. I know I'm so wonderful but that was really strange. And I think Jedd and Manhattan would be personally offended that they were compared to me as I don't think either one of them has ever really agreed with me.
Women are such strange beings. I find it very fascinating to observe the dynamics and culture. its no wonder I prefer the company of men
Phoenix, I think thou doth protest too much regarding your Pharmacy "stories". Also, the only person I've ever seen that consistently agrees with Phoenix, to the point of nausea, is MissMannah. Maybe THEY'RE one and the same. Probably not, but it makes me feel so much better to think that they're both Phoenix and that there's not another person that supports half the crap Phoenix says she does like her friend MissMannah.
I wonder why everyone all the sudden wants there to be some sort of conspiracy theory?
I happen to agree with Phoenix on a lot of issues, and I'm not her.
Perhaps I missed it in this really long thread but does any nanny on here have a personal experience with getting caught not paying taxing? Or know someone that it happened to? I am really curious as to what the repercussions actually were by the IRS (vs what could POSSIBLY happen if you got caught).
So, just to move off of the "Is this poster also that poster?" discussion, and back to why we pay taxes, even of we don't like what the government does with the money discussion...
Those of you who don't pay taxes. I assume you also don't use any public roads or public transport, since those are paid for with tax money, and you don't contribute. I also assume you and your dependents avoid using public schools and colleges, since you pay no taxes to support those institutions of learning?
And I KNOW none of you accept any sort of public assistance at any time, since that sort of thing is funded by taxpayer dollars. No WIC, no unemployment or food stamps, or housing assistance or federal home buyer bail outs for any of you, right?
Strawberry, I don't know what happened to my first (and worst!) employers when they screwed up with the IRS, but I can tell you that the various IRS and State tax agents I spoke with after I got an "Employer Identification Number" notice in the mail that had been sent after my dimwitted employers asked to have ME given the number THEY needed) were VERY interested in my information about my tax cheat ex-employers.
I can also tell you, from no less a source than a nanny tax company, that the IRS has figured out that there is a HELL of a lot of tax money going missing due to employer and employee non-compliance when it comes to household workers, and they are sniffing the ground trying to root out offenders.
And frankly, if the National Domestic Workers Alliance and its fellow unionization groups get their way, there will be NO WAY to hide and not pay taxes. The NDWA is all about labor protection laws and that means taxes for everyone.
Uh...Jedd? Do I know you in real life? Your comment about picking me and my husband out kind of freaked me out. I've never posted a pic here of myself and I know I've never posted a pic of my husband or even said his name.
Tales, thanks for pointing all that out! I couldn't have said it better myself!!
Phoenix, I don't understand what you mean about the US paying high taxes and Japan being the only one who pays higher. Many other countries pay a higher income tax than we do. Most of Europe is around 50%.
I've just visited your website, so I have alleviated my fears that I know you.
As I have worked for 9 different daycares over the years, several of them corporate, that doesn't surprise me. Though I don't see how you could pick me and my husband out of a lineup as a result. How about we skip the being vague nonsense and you just tell me what you're talking about?
To the nanny unclear on her withholdings -
Above information is correct, the 5.65% (which is 2% lower than usual, as a stimulus attempt) is only your medicare/social security withholdings. Federal income taxes vary based off of an individual's income and deductions; state income taxes vary even more based off of those factors and by state - so unfortunately, there isn't a tidy percentage people can target for you. You can download 1040 forms online. I've found the boxes are pretty clear.
Also correct is that household employers are not required to withhold state and federal income taxes. (Exception is when they employ more than a certain number of people - I believe it is eight, at least in my state.) As Momwest said above, bookkeeping can be expensive...and I suspect the paperwork can be annoying and a fair amount of extra work. Your best bet is to use an online calculator and figure out what you need to withhold from each check and put it into a separate savings account. As a small bonus, you'll get interest on it! (It's a very small bonus like one glass of wine or one bar of chocolate.)
I think that when faced with others' firm morals, many accuse them of being "high and mighty," etc. high horse, whatever. To me, this is one of the reasons children are so entitled and spoiled these days, 18 year olds who have never had a job, horrible work ethic among teens and young adults. It is because of people who say "I don't have to pay taxes, I can do whatever I want." Well of course the kids are going to feel that way too if you are modeling that behavior.
I think if you are an American citizen and you don't pay your taxes, then you are not a good role model for kids and you should not be a parent or a nanny.
what happened to right and wrong? Phoenix, if our country is going to shit, it is because of people like you and your lack of morals and character. Just my opinion.
I pay my taxes. So how does that show lack of morals.
Europe has most of their pay taxed yes. But they also get a lot more shit. It was a tax to benefit ratio and how many silly taxes we have here. Europe isn't like that at all. our country has gone ape shit
Phoenix, you display a lack of morals in every other word you say. You advocate not paying taxes. You sound a little off in everything you say. I have been reading this blog for a long time, and I know you have a lot of mental problems.
AMEN M!
I couldn't agree with you comments more!
Phoenix-- I teach in "the wealthiest state in the union" (CT) and you wouldn't believe what's been cut from our budgets in the past few years. The big problem is that no one wants their taxes raised and everyone pushes a "zero increase" budget, but what they seem to have forgotten that, due to the rising costs of salaries/ utilities/ general fees, a "zero increase" actually means that you have to CUT stuff to make up the difference. This is just a snippet of what my district has cut in the past few years to make up for these "zero increases":
1. Tissues (The kids are supposed to each bring in one box at the beginning of the year. I teach middle school- how many boxes do you think I got at the beginning of the year? Yup, zero. I purchased all the tissues my classroom has for the year)
2. Laminating (If I want something laminated so that it lasts, I either have to beg, borrow and sell my soul to do it or take it to CopyMax and pay for it myself)
3. Most classroom supplies (Crayons/ Markers/ Rulers/ Calculators, etc). Again, the kids are supposed to be supplying them, but that's not cool to do in middle school, therefore, if I want these supplies for my classroom (I do teach 2 periods of math per day, calculators and rulers are a necessity), I buy them myself.
4. Copy Paper (OK, OK, this hasn't been cut completely, but it's been reduced to the point where teachers hoard paper in their rooms so that you have it come May/ June. The only problem being that it's only February and there is so much paper squirreled away in teacher's rooms that we're down to about 10 cases left. That will last about a month if we're lucky. We hoard it because once it's gone, it's gone. No more paper is ordered. If we need more after that, again, we buy it ourselves.)
I'm not listing all these things to get at "woe is me" response- I'm just saying that, while I see your point, that (at least in CT), we are required to provide a FREE, appropriate education to all children, it is teachers who suck up the brunt of these types of cuts. I know, I know, according to most politicians we are over paid and under worked, but I spend between $1500-$2500 per year keeping my classroom outfitted to provide your children with an education. And while my district has only begun their "pay to play" program for sports and only at the high school level, I can see how these fees are becoming a necessity.
There comes a point where you can't make any more cuts to the budget. If you don't like the fact that you have to pay for your stepson to do all these things at school, talk to your Mayor/ Councilman/Senator/ Congressman/ Governor. The only way that change will be enacted is if enough people stand up and demand a change.
How many town meetings have you gone to? Have you asked about how your tax dollars are being spent? I'm only asking because you asked that question, where is the money going. If it's that big of a deal, you need to take it upon yourself to be informed because no one is going to just hand you the information.
I do agree that, as Americans, we are being taxed to death and receive little for it. I'm actually against raising taxes and against big government. I don't think we should have all of these entitlement programs that are abused and overused. For these reasons, I support the Fair Tax. You pay no income taxes at all, you only pay taxes on what you purchase, but EVERYTHING you purchase is taxable. Done this way taxes are, well, fair. Everyone pays taxes, there are no loopholes and the government gets the money they need.
Phoenix...don't worry about all the haters on here. You are at least brave enough to post your picture unlike all the other people who hide behind their anon monikers like internet cowards. You are pretty and that is why people are hating on you so much. People hate pretty people.
Phoenix...I think those of us who post our pics are not afraid to hide behind our anonymous screen names. At least we are putting ourselves out there.
I wonder if more people posted their pics...if they would still say half the things they say.
@mytwocents, I totally agree with what your saying. Even though I still know P is all sorts of crazy, haha. So I've put my picture up as well.
In this day and age, I feel not putting your picture on the internet for everyone to see is smart, not cowardly.
I think if you have your pic up on a blog and are making personal comments, you are simply foolish.
It doesn't bother me a bit when people say "Oh, where's your picture, where's your picture?" Please. I would never want all you freaking wackos knowing who i am and where I live. That's just common sense.
I, for one, am sick to death of the stigma of mental disabilities. Why is it only when someone goes around and calls someone else a retard that they actaully get called out for it? Why is it still perfectly acceptable for any Joe on the street to pretend he or she is a psychiatrist and say so-and-so has a mental problem simply because you disagree with their opinions? Can you not see how offensive this is? Not only is it offensive to the person you are speaking to, but also extremely offensive to those of us in the mental-illness community. We are dealing with emotion or mental disabilities on a daily basis and, for the most part, are living successfully with our problems.
Sorry to take this off-topic, but too many people on this thread alone have accused Phoenix of being disabled and she has never once even hinted to having a disability so it is really starting to piss me off.
Also, about putting a picture up...I've mentioned this before. I would like to but have no idea how. If someone would walk me through the process, yall could get a glimpse at my scary mug. I have nothing to hide, least of all my ignorance of how to work this website.
This is not about Phoenix or any specific person. This is about stigmas and respect. You are a low-class human being, which is much worse than being mentally disabled.
Miss Mannah: If you do not know how to upload a photo for this blog, why not ask your husband? I bet you are just saying all of this because you know once you post your picture, you won't be able to say all of the nasty and dumb things you have been saying. Some excuse. Post a pic. It's easy peasy.
Why does posting a pic not allow someone to continue to be honest. I'm not seeing the connection there. Just because your pic is up doesn't mean that someone will be able to find you or something.
Whoa, this thread went way off track. The tax issue between my former employer and I is now a non-issue. Case is closed. Asses have been covered. Everything is good now. Let's all relax and move on with our lives and quit bashing each other. Let's head over to another thread and argue the nanny cam debate or something before this one explodes.
retarded
I am wondering... do you walk up to people in wheelchairs and tell them how horrible they are because they can't walk? Or how about kids with cancer, do you tell them they are probably going to die? Your statements to not only myself but also to MissMannah show how little character you have. I don't hide behind an internet name, you can see my face every time. I say what I mean and I hold myself accountable for everything that comes out of my mouth.
I actually do not have any diagnosed history of mental illness or psychological/emotional issues. I am a passionate person and I have a very quick temper. I however, am not cruel. I don't personally attack people. I will call them stupid at times. But that is because the things being said are stupid. Not that someone as a person is stupid in general. But other people feel that it is ok to personally attack someone's character, their personal appearance, and now aparently for even agreeing to others opinions.
Shame on all of you who resort to such low blows. Attacking someones character is different than attacking someones statement or opinion. You all need to grow up. You are lucky that the people you attack are strong and don't let things get to them. But what if you were saying these things to someone who was emotionally wrecked and had psychological problems? What if this person took things people said on the internet to heart? You all better recognize what you say because maybe one day you will get someone who is just on the edge. How are you going to feel if you were the reason they jumped off?
For shame.
Thank you Phoenix for that analogy. I was trying to get to that but you put it better than I could have. I can tell that you have not been diagnosed with a mental illness--not only because you have said so and I believe you--but because I have and I have obviously been in treatment for a great many years. It is very disturbing to me how it is acceptable in our society to make fun of those with mental illness or emotional difficulties. Most people would never dream of teasing someone in a wheelchair or calling them a cripple. And yet it is just hilarious to come together and say "You are crazy and/or retarded" just because one is differing in opinions. And yes, you're right I am a strong person and I know who I am. I don't let people get me down, certainly not people on a message board that I'll never meet. Thank the good lord for SSRIs.
LOL. SSRI's yes those are a god send. I do find it insulting that people do throw that around. One of my very best friends has been in therapy for many many years and is struggling with some pretty awful things. I've seen first hand her struggle with her disease and what happens to her when people put her down. She is on the federal register of not being allowed to buy weapons. She is going to be sick the rest of her life, but she was shown the tools on how to handle it. God, I remember times when she would literally flip out on me. She would literally be jumping up and down screaming about something, and I would just have to stay very calm and not argue with her and talk her off the ledge so to speak. So I do know what it takes to battle it. It's not right for people to behave and say the things they do. But it still happens. The world is full of interesting conversations and different opinions, we all just need to listen to them and if we don't like it, move on.
Check this out, I figured out how to register my ID. LOL, I'm not as stupid as I thought I was!
LOL @ missmannah, your cute!
I'm seriously going to barf.
Ah, don't be jealous you heifer! LMAO
Phoenix, Lyn and Two Cents you guys are hot.
Miss Mannah you are cute (!)
Happy Valentine's Day everyone....
OMG MissMannah you look just like one of my friends I went to highschool with. You are beautiful girl!
Yes it took me a minute to figure out how to register too. I actually didn't remember how I did it so I wasn't able to advise you on the directions. Glad you joined us hotties who post our pics!
Thanks! You know, everyone is always telling me I look like so-and-so. I just have one of those recognizable faces I think.
Phoenix may not know as much as she acts like. If her husband is filing as head of household and she lives with him she is filing fraudulent returns. I don't know, but if you were working as a household employee, read one of the publications and instructions for household employees because she might be liable for part of your taxes (social security tax). If you were treated as a contract person, you might be stuck with all of the tax. I would call her and ask if she paid her share of the nanny or household employee taxes and that will let her know she has a liability, too.
Ok im working as a nanny and my boss its giving me a 1099, so its there a way to make her pay half of my taxes?
If i fill out a schedule c for tax purposes and receiving public aide (food stamps and housing) and didn't report it. And eligible to recieve a refund because of my 2 small childen will i get penalized from the state?
They can not with hold your wages file a wage dispute with the labor department and you will receive your pay an also the left you financially liable by not including you on the company veihicals insurance and you probably are entitled to some form of that you would have to pursue in small claims court
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