Hi everyone! I'm in a bit of a dilemma. I have been working for a family for 7 months. I've had my ups and downs with them, but I'm happy for the most part. I'm getting a semi generous salary. I feel horrible for not paying taxes and I want to do the right thing by paying them. I talked to an accountant who advised me how much to put away each week. I can't afford to put away what was advised without going into debt. I'm afraid that if I ask the parents for a raise to cover the taxes, they'll say no, and I'll lose my job. They can certainly afford it, but they're the type of family who won't spare the money unless they absolutely have to. I don't have a contract btw. Any feedback is greatly appreciated. Thanks!! :-)
32 comments:
Unless the parents are saying they want to pay you on the books, I wouldn't bring it up. The parents probably do not want an on the books nanny. Most nannies are paid under the table, because families can't afford their share of the taxes. There are several "tax nazis" on this site who I'm sure you will hear from, but really, there is no need to feel horrible about it. When you work for a family instead of a company, they are often just not equipped to handle taxes for an employee. If you get audited, you will not be in trouble, the family you work for might. So as long as they want to take that risk, don't worry about it.
OP,
you can't afford to pay your taxes without going into debt? well too freaking bad.
I am so sick of the ignorance regarding taxes. if you worked in a daycare, you would get the taxes taken directly out of your paycheck. Why in god's name do young people have such a sense of entitlement these days? It sickens me.
Your parents failed.
Don't worry: that is horrible advice. Shut up unless you have something intelligent to say. And comparing people who pay taxes to Nazis is simply foolish. Do you know what Nazis did?
You're an idiot.
OP here. Fail, are you a moron? Did you not see the part where I said I WANT to pay taxes? I work in the city for a family with 5 kids. I should be making more than I am now. I'm in the process of applying for better paying jobs on the books. I have no sense of entitlement. I've busted my butt as a nanny for the 2 years I've been out of school. I live on my own, I pay every single bill myself, I don't rely on mommy and daddy like most people my age do. My parents didn't fail. Jerk.
I think paying taxes, when you are a private employee to a family, is your personal choice. You are taking some risks (not being entitled to workman's comp, unemployment, paying into your medicare) but honestly, at the rate our country is going, I'm not handing any money over to the government that I don't need to. I get so annoyed going to the grocery store and seeing the person in front of me using her food stamps to pay for groceries because she popped out six kids. But because I don't have any dependents, it's almost impossible for me to get any assistance, even though I live just above poverty level. So, decide for yourself. It's wonderful that you would pay your taxes if you could afford them, but you can't. And since the Obamafund isn't handing out cash to people in need (REALITY CHECK: There won't be medicare by the time I'm old enough to collect!!!)... I'm in no rush to support other broke people before I support myself.
Well, taxes is something you work out before the job starts, and many families want to pay taxes. If the family has it's own business or both parents work full-time in a high profile profession the chance of an audit is higher and many families prefer a legal employee that pays state federal, disability and unemployment, an you get to put into SS. Many families ethically want to pay taxes, especially public employees, lawyers, doctors and small business owners. Many agencies will send you on interviews only with families that want to pay taxes. There are payroll services that are simple for parents to use and give you your taxed paycheck direct deposit into your bank account. There are also computer programs you employer can use to deduct taxes and direct deposit to your checking. These services send your tax stuff two to three months before taxes are due and are very easy to give to whoever dose your taxes. So, now it's you job to talk to the parents you work for now ask them how they would feel about paying taxes, tell them why you would like to start paying taxes. If they are receptive you could propose a pay increase to occur at the time you've been there 6 months, the pay increases would start at the same time they start taxing you hours. This might get you into trouble if they have been paying you by check since you started, but I'm not sure. Nannies if your working under the table and getting paid by check you could get in big trouble with the IRS, ALWAYS GET PAID IN CASH IF YOUR WORKING FULL TIME UNDER THE TABLE!
Tell parents this is for both your protection as cash is the only thing that's untraceable. Also remember those families that mistakenly try to get that childcare credit by saying you are self employed as their nanny their regular checks to you can be traced! If the family is not receptive let it go ask for cash from here on out and next time have all this settled before you start. Being a professional, tax paying, nanny with a job description outlined along with hours, pay, sick days, holidays and vacation time, and a raise after agreed time period is easier if you set it up before the job begins. If your working part time you may not have sick days, or holidays, but you can still pay taxes, it just may be easier to establish all this before the job begins, if you try to do now it will be lots tricker and the parents may resent it.
Could you ask for a 6-month review to address the tax issue and create a contract? You can ask them if they've ever considered paying on the books, and let them know you're very interested in this. If you present them with information about how it works, as well as some possible services they could use to set up a payroll, they may be more receptive.
OP, you want to pay taxes. But you didn't. And you are not.
You're the moron.
I usually don't get involved with the comments but please try and be respectful of the OP and not call her names.
I don't want Readers to feel as if they cannot submit their problems for fear of being flamed... especially when it seems they are trying to do the right thing.
Thanks.
OP, since you accepted the job "off the books" it would be very unfair for you to all of a sudden want to be paid "on the books." It's like throwing a curveball at the family.
You can try to mention how you want to work on the books now, and thus need a raise, but I strongly suspect the family won't want to do it. Be prepared to be canned or have your offer rejected.
I understand paying taxes when working for corporations and such, but between two private parties..the dynamic is different. Yes, I know it is the law, but that doesn't mean it is right. There are many laws out there right now that are not right. In certain states, gay marriage is still not recognized. In my state, it is illegal to drive barefoot. (CA)
I am sure there is not one human being who follows each and every law to the bone. Unless they live in a glass house.
OP here again. I appreciate those of you who didn't tear me down and answered with class. I realize I made a mistake when I started working for this family. I should have asked for cash or tried to work out something with taxes. I'm trying to do the right thing now. My priorities have changed in the last 6 months. I want to buy a house with my soon to be fiance. How am I able to prove my income if I don't pay taxes? Banks want pay stubs and if I can't prove I work, they will only take my bf's income.
I think it's nice that you feel a public responsibility to pay taxes, but if it's not in the starts for you right now, why don't you set aside a lesser sum each week and donate it to a charity of your choosing? taxes disproportionally go to funding war and other destructiveness causing global problems. if you want to do good with your money, give it to charities that really need it!
I'm glad you want to pay taxes, OP.
Unfortunately, unless you work for a very flexible family they probably won't want to pay you on the books. If they were interested in paying taxes they would have done so from the start.
I totally sympathize with you wanting to do the right thing but needing to keep a job.
As others have said bring it up at your net review, really build up how it benefits them , explain why you want the change now (buying house etc) as well provide them with the payroll info as well.
I'm hoping things go in your favor with your this family or in a new job.
"fail!" must be short for "reading comprehension fail". Ignore their nasty comments.
Good for you for wanting to pay taxes, but unfortunately you may have to find a different family as it seems this family wants to keep things under the table.
In the future, ALWAYS HAVE A CONTRACT with your families!
And if you are audited in the future, you could be in deep doo-doo along with this family. Both the family and the nanny face penalties with tax evasion.
One of the reasons I started paying taxes was I had trouble proving I could afford the rent at an apartment I wanted, and buying a car. I was worried about getting audited after not paying for a few years. It was a comfort to know I could apply for unemployment when I was suddenly let go when MB's company went under. It's been way easier than I thought and getting a paycheck every two weeks direct deposit is way better than bugging forgetful parents that I need regular paydays to budget my pay. It might be easier than you think. Just ask the parents how they would feel about it, good luck.
Get a new job. If you can't afford to pay taxes on what you're currently making, you're obviously being underpaid.
If you're babysitting for a family you don't have to feel guilty for paying taxes. The person on here who is calling you names is immature and most likely hates the fact that they have to pay and you don't. Oh well you're lucky. I sit as well and don't pay taxes, ITS GREAT! The family probably figures they're getting a deal in itself by not having to pay taxes and paying you are your rate. Your not cheap, you're not a horrible person. There are many people getting handouts, welfare, SSI while not paying taxes, getting free food at the local food bank, etc. Those are the type of people who milk the system for what its worth. The goverment loves taxing and they're sitting pretty comfortable. So don't feel guilty.
Good point Aries...except I think people who get SSI are getting it because they have a disability, i.e., blindness, etc...I do not think they are milking the system.
I agree with you Sparkle.
My sister is in a wheelchair and receives SSI for her disability. No way is she milking the system. She cannot work and is barely covering her bills and rent with what she gets.
OP here.
I'm in the process of working with a wonderful agency. I should be getting a new job fairly soon. How can I make sure I leave on good terms and am able to get a reference? I've only left one job, and I was very professional and pleasant. I gave my 2 weeks notice and worked everyday with a smile on my face, even when the parents treated me like s***. The family still refused to be a reference bc they were upset I left.
OP, get a letter of recommendation NOW, before you turn in your two weeks' notice. It is a little underhanded but necessary because I doubt these people will give you a good reference also. They seem a little selfish, if you ask me. Just make up a reason for needing a reference letter: ie, volunteer work for a church nursery or wanting to start a new school training program. That way, they can outline your strengths in childcare and you can quit with a smile on your face and never have to talk to them again! (Hopefully, in a perfect world.)
I'm offended by the SSI comment. My child is disabled and I am a single parent and we get a small amount of SSI. It is ignorance to make a statement like that, about milking the system, when you know nothing about the issue.
As far as paying taxes, I pay my taxes. I am having a very hard time understanding why people think it is ok to work full time and not report your income to the IRS.
I am very glad I pay my taxes, and am proud of it. I work very hard and want to teach my child the right, honest way to do things. Taxes go to a lot of things, including public school and a million other things that you take advantage of, or some day you will. I think the people on here who are saying it's the cool thing to do are misguided and wrong.
Aries...you are so stupid.
Period.
Of course SSI recipients cannot pay taxes, they cannot pay taxes because they cannot work due to a legitimate disability.
SSI is not a handout for just anyone. One must be disabled.
Welfare and SSI do not even go in the same category idiot.
I'm a little blown away at the name calling. Huh. Anyway, I understand the point Aries is trying to make. My uncle is "disabled" and receives SSI checks every month, but I know he does a lot of work under the table. I know everyone is not like that, and that MOST people genuinely need it, but there are bad eggs out there. That being said, I don't think it's okay to skip out on paying taxes. A lot of people blow off their taxes, but it doesn't make it alright.
OP, good for you for trying to do the right thing.
Taxes are not in the least bit optional. Where do these unfounded opinions come from? I'd love to see an IRS audit where someone cheerfully tells the agent that they made a charitable contribution to Books, Not Bombs, in lieu of taxes. Also, if you accept money or a raise in order to pay your taxes, that money is also considered taxable income. I have seen that idea brought up on this site many times and don't understand the logic of expecting your employer to pay your income taxes. Try going into any other employer, such as retail, and asking that they pay your taxes on top of the hourly wage offered! Federal taxes are called income taxes for a reason, not to mention all the other taxes too. As a few posters learned, you won't be able to list your income for loans, SSD, workers'comp, etc.
Our government isn't exactly sitting pretty as one of the above posters stated, have you ever heard of that pesky thing called the deficit? Turn on CNN for a few minutes on Sunday morning and you might learn something.
I don't think OP is asking her employers to pay her taxes. She is asking to be paid on the books the exact same way you would be paid working retail or any other job.
Yes that is her employers responsibility. They can't 1099 her.
Melissa,
I am a little blown away that you just posted such personal problematic information about a family member on the internet, coupled with a picture of yourself. Wow. You must not like your uncle.
And well said, Uncle Sam. Finally someone with a brain on this blog.
LOL. welcome to america. tax the shit out of you so you can't even live. LOL
Melissa:
Your uncle probably works under the table since his SSI check is not enough to live off of.
In my state CA, the amount is $855/month. To rent a studio in a safe neighborhood would run you at least $750/month and if you collect SSI here, you cannot get food assistance so basically you can live in a studio apt., but if you want lights and hot water, you must eat dirt.
I guess the rules must be different in different states because here in OK, you are allowed to get SSI and food stamps at the same time. You also are allowed to work a part-time job without having to report the wages, as long as it is under a certain amount, I think like $150 a week.
Wow Miss Mannah...OK is a pretty fair state.
In CA, one cannot receive food stamps and SSI which I never understood since someone disabled and on a fixed income would be a prime candidate for food assistance, right?
Also, one must report every penny to the Social Security Administration if they want to keep their benefits.
Oh and btw you can't ask your employer to adjust your income to accomidate your taxes. Why? because then you would be taxed more. The more you make the more you pay in taxes. If I were you I would be grateful for getting paid under the table. I hate taxation without representation.
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