Monday

I.C. You Need Advice

opinion 1
A family wants to hire me as a nanny and be an independent contractor. What do i do?

13 comments:

Wendi said...

Do not let them 1099 you OP. You are a household employee and should be treated as such.

la said...

Run. Far away. Trust me. I know from experience. It sucks. Your taxes will be through the roof.

Alex said...

That stinks! That means you are responsible for both parts of your taxes because you would essentially be "self employed." Do not do it unless you are reader to pay more % if your pay in taxes and not be covered with unemployment etc.

N is for Nanny said...

You tell them that while you would love to work for them, you have been advised that a nanny can only legally be classified as a household employee and must receive a W-2. You agree that it is poorly explained by the government, but would hate for you both to get into trouble. There are tons of links on here and the web to explain all of the details. It actually is clearly explained.

Of course, if you don't want to work with them for other reasons, you simply decline.

Good luck and props for addressing the taxes before accepting the position!

Dr. Juris said...

Your taxes will be, like, 30%. Get out. Seriously.

MissMannah said...

Whenever a parent brings up the 1099, I always tell them they won't be eligible for the childcare tax credit that way. It usually gets them to reconsider.

Phoenix said...

you can't be a nanny and an independent contractor. From what I have read up on it that is not even legal. You have to get W2 income and they have to pay their portion of the taxes. 1099 income will make it so they wouldn't have to pay any and that is why they want you to do it.

dietaxes said...

Either go the whole way and do a W-2, or do everything under the table in cash. Anything in between will get you screwed.

Milehighnanny said...

You cannot be an independent contractor as a nanny. If your employer can tell you when to show up, how they want you to do your job, even guidelines about dress then you are not considered an independent contractor by law. End of story. If you can come and go as you please, and have total control of your job ( like an electrician or plumber would) then they may pay you as such.

ELam said...

You say no.

Nanny J said...

Definitely not acceptable, tell them you will be W-2'd or won't accept the position.

a mom said...

household employees such as nannies and housekeepers are not independent contractors. The IRS is VERY clear on this. An employer who thinks they are and treats them as such for tax purposes is just like an employer who pays under the table. If you were an independent contractor by the way, you would have to charge them sales tax on your services

deb4now said...

Nannies are not and legally cannot be an indepedant contractor. Independant contracters make their own hours and work at their leisure. Nannies are told when to work and what duties they have. It's illegal to 1099 a household employee tell them to get it straight and to contact a household payroll service like GTM payroll services