Scoring Good Credit

opinion 1
I'm coming up on my fifth year of nannying and have never dealt with taxes. It was great when I was starting at 17 but I'd like to break the cycle of relying on my mom's name and credit score for everything I want to do (car/insurance/apartment renting/etc). I'm not sure what the process is for figuring it all out. I know some employers will cover the taxes completely, but I assume that's suggested by the employers and not asked of them by the nanny? Is splitting the cost reasonable? What do my employers need to do? Is there a way to determine exactly what I would pay? I work four days a week, 12 hours a day and am salaried at $625/week with rounded up overtime at $13/hour (usually ~20 a month). I'm a planner and would like to have it all predetermined (if possible) before I mention so much as a word to my boss. I've been with this family part time since October and full time since November so I'm hoping to be "legit" by the year mark, or earlier if I can figure out the numbers. I'm a too-independent person, moved to a different state and live very well on my own for a year and a half now and am looking forward to relying on my own (eventual) credit score - so any advice is greatly appreciated!


MissMannah said...

I have a question for you: how the heck did you manage to get a house or apartment on your own if you have no proof of income for the past 5 years? I'm also wondering why you even accepted a new job this past Oct/Nov not on the books, and then decided to get legit? The parents have a great thing going for them--they don't have to pay employer taxes--so they aren't going to want to get on board with your mission. I'm guessing the only thing you'll be able to do is request a 1099 at the end of the year from them and pay taxes yourself as if you are self-employed. If you want to approach your nanny-family about paying taxes (good luck!), can help you out.

wow. said...

Miss Mannah,

You don't really read very carefully, do you? OP clearly implied that she has a mother to rely on when it comes to credit. Her mother probably co-signed on an apartment for her.

OP: here is some advice from me: you are 21 and old enough to realize that you need to claim your full-time income to the IRS. Grow up.

As far as your credit score, you need to get a credit card and use it, and then pay it off. Your credit score is based on your debt to credit ratio.

Did you graduate high school? Just curious.

MissMannah said...

I did read that, but having moved out of state myself I know how difficult it was. I had proof of employment AND my parents co-signed for the apt, and the leasing offices still gave me a major run-around simply because I was from out of state.

throwing up said...

Miss Mannah,
looking at your stupid face makes me absolutely sick. please take your picture down.

MissMannah said...

So close your eyes.

Rosegirl said...

Miss Mannah, I want to support you and commend you for your maturity! I think your comments are reasonable and interesting.

Sunshine said...

Wow, folks, can we make it to 10 post before the bullying begins? Sheesh.

CO Nanny said...

Miss Mannah, please ignore all those ignorant persons who do not have the maturity to let others express their own opinions and to move on if they do not agree with it. I like to read your posts and agree with most of it. Keep it up!

Tax Nanny said...

Take a look at the FAQ here:

You can see the difference between net and gross wages. If you are currently getting $625 a week under the table, I doubt your employers will agree to sort out all the taxes so that you will net the same amount, as it will end up costing them at least another $300-$400 a week.

You have a lot of negotiating to do! Good luck!

Susannah said...

You should be reciving 8 hours of overtime pay each week. Overtime is calculated at your hourly rate plus half.

Even if you are salaried your employers are still required to pay your overtime.

By law they are required to pay Federal taxes I believe it varies from State to state if they are required to pay your State taxes.

Go to They have great information for you and your employers.

Good for you for realizing you need to be on the books.

talesfromthe(nanny)hood said...

Actually, if your employers pay the taxes for you, it becomes an extremely complicated adventure. As it is, you'll be trying to convince them to add 10% or so to their weekly childcare tab. HomeWork Solutions has articles about all aspects of the "nanny tax" - google them and do some reading.

No, splitting the cost is not reasonable, unless you are discussing FICA and SS. Those taxes are paid (approximately) half by the employee and half by the employer. The employee has Federal, State, and Local taxes deducted from their paycheck only.

You can google "nanny tax calculators" and input some basic info to discover how much will be taken out in addition to the FICA/SS. That will let you see how much you will need to adjust your budget.

I would strongly suggest that you ask your employers about this with info in hand about THEIR benefits to going legal, like the childcare tax credit.

Employers don't HAVE to withhold anything but FICA/SS. Most do also withhold all Fed/State/local taxes too, just because it's not a huge effort for them to have that done by the payroll company.

Also, just FYI, you work 48 hours a week. That means you are working 8 hours of OT right now. Your hourly rate is $12.02 and your OT rate is $18.03, which leads to your weekly check of $625. Being paid $13 for OT is not exactly doing you any favors, and, to be terribly persnickety, your employers are breaking the law, unless you are a LI in a location where LI nannies do not get OT rates.

oh well said...

Miss Mannah you are one of my favorite commenters. And I love your picture!

Alice banned from the palace said...

employers are required to withold

The employee’s half of FICA (7.65% of gross wages). In 2012, employee FICA taxes are reduced to 5.65%.

Federal Income Tax (withholding rate based on employee elections on Form W-4)

State Income Tax (withholding rate based on employee elections on state Form W-4)

Other state taxes (some states levy additional taxes to pay for things like Disability Insurance)

talesfromthe(nanny)hood said...

Alicebannedfromthepalace, you are incorrect on several points. For more information, follow the links:

"employers are required to withhold:"

"The employee’s half of FICA (7.65% of gross wages). In 2012, employee FICA taxes are reduced to 5.65%."

****This is true. The ONLY required withholding is FICA/SS.

"Federal Income Tax (withholding rate based on employee elections on Form W-4)"

****FALSE! From 2nd link above: "Deducting federal income taxes and most state income taxes is optional. When income taxes are not withheld by the employer (family), then the employee (nanny, housekeeper, maid) is required to make periodic payments of any amounts due."

"State Income Tax (withholding rate based on employee elections on state Form W-4)"

****FALSE! See above

"Other state taxes (some states levy additional taxes to pay for things like Disability Insurance)"

****Questionable. Employers pay unemployment taxes and such, but that does not come directly out of an employees check.

Alice said...

Tales I got all my info from Breedlove I've never run into a problem going by that standard so I think I'll stick to it.

MissMannah said...

Thanks for the kind words, ladies.

Alice, I think breedlove says this on their website because they are a payroll company for household employers. They take care of the withholding for the employer, so naturally they are going to say they are withholding all taxes. Tales is right, the employer is not under any legal obligation to withhold federal or state taxes. It is up to the employee to make the choice to have those taxes withheld or to pay them herself out of her check.

Bethany said...

There's a easy understand table right on the IRS website for nannies and parents for them to figure out exactly what taxes are to be paid/withheld

Tales from the (Nanny)Hood said...

Alice, I am glad you've never had an issue. However, your info is incorrect. It is perfectly acceptable for an employer to withhold ONLY the employee's share of FICA/SS. Most employers also withhold Fed/State/Local taxes, but they are legally protected if they choose NOT to withhold Fed/State/Local.

Look it up.

Alice said...

I think you've made you're point Tales. Would you like me to bow down at your alter and worship a bit?

I only work for employers who withold all period.

Thank you for the IRS link, Bethany useful info without being obnoxious.

Tales from the (Nanny)Hood said...

Nah, instead of worshiping, just don't claim something is a rule when it's not.


Alice said...

Excuse me or making a mistake

I thought it was accurate as I read it on Breedlove.

You could have posted the correct info with out the nasty attitude, but you decided to be a bitch about it for whatever reason.

1234 said...

She made an honest mistake, she even said her info came from a pretty reputable site.

There was no need for you to rip her to shreds the way she did. If you go back she wasn't the first nanny to be confused about what is required of posters.

Are all posters supposed to believe everything you type just because YOU type it?

Tales, I have to say I'm actually a little surprised I didn't have you pegged as one of the snots on this site.

utnanny said...

Hey OP, so I know you have gotten a lot links to follow. This is the best one I have found, it's free and it gives you the option to figure your pay whether it is hourly or salaried. I use it to keep track and make sure my boss's calculations are accurate. You enter your info and it shows you how much needs to be withheld for fed, state etc.

N is for Nanny said...

Hey OP,
I think your best bet is to ask for a six month review (which is April). You can ask by stating that you are really happy to be working with their family (I didn't see any complaints, so I assume you are content overall - people seldom hold back from complaining on here) and want to make sure that they are happy with you, and also formalize your agreement. If you do not have a written agreement, this would be an excellent time to write things down as well. (If your current situation is working, you can just write down that down. Paperwork is rarely a bad thing for a nanny to have.) At this time, you can also bring up legal employment.

I only skimmed the above comments, but it looks like there is good information about how to legally employ a nanny. To be honest though, whether your employers choose to use a service, individual, or do it themselves is their business, so long as you get a W-2. I would not expect them to pay any portion of your taxes, but would expect them to pay the employer portion. You should expect to see a drop in your take-home income. I've always found the calculator at to be accurate for my situation - and it's free.

Tales from the (Nanny)Hood said...

I have a policy when it comes to being sarcastic. If I get smacked with sarcasm, I smack back. Alice asked if she should bow at my altar, and I responded in kind.

If I came off as snooty prior to that, it's because I feel it's essential to get the proper info out about taxes to nannies who ask for help. I certainly don't know everything about taxes, but I do know some basics, and if someone posts incorrect info, I will say so and offer the correct information.

According to's owner, less than 20% of US household workers are compliant with the US tax system. If someone wants to become compliant, I want to help them by making sure the info they get is correct.

Phoenix said...

I am not sure why people are so nasty that they have to take personal shots at people. Just because someone is so ugly that they want people to take their picture down because they are jealous doesn't give them the right to speak like an ass.

nycmom said...

Miss Mannah and Tales,

You both also have my support! You have been consistently reasonable, respectful, and interesting in our many discussions over the years -- whether we agreed or disagreed. I'm sure it's just he usual transient nasty posters who seem to find their way here every few months.

MissMannah said...

Thank you, the feeling is mutual.

For the record, I think Tales was bringing up facts and Alice didn't like her pointing out that she was wrong, and that's how all these nasty little posts got started here. Whatever happened to "oops my mistake"?

Alice said...

Thank you for reading my mind Mannah! You and the others would be the first to jump in. Talk about circling the wagons.

My issue with Tales is that she was very nasty in the way she pointed things out.

I'm not sure what her issue is with me as I've never posted here before.

I have no problem owning up to mistakes. I didn't snap at you when your post pointed out that I made an error. I even thanked the poster who posted the link to the IRS.

I don't play clique/hierarchy game I left that in high school. If you want to take a tone with me you best expect to be called out on it.

MissMannah said...

You're quite welcome.

I had no idea you could read tones over the internet. That takes some talent.

Also, I highly doubt Tales has any issue with you, or anybody else here. She doesn't seem to be the type of person to care that much to get upset with people.

Tales from the (Nanny)Hood said...

Thanks nycmom. I like you and MissMannah too.

Alice, at the risk of you calling me nasty and bitchy again, I want to explain to you why I post here.

I post here because after nearly 19 years as a nanny I do have some knowledge to share, and because I feel strongly about advocating for certain things when it comes to the nanny profession. Working legally is one of the things I feel strongly about.

I am posting to share information with the op in most cases. If someone is offering bad info, I will point it out and share the correct info.

I am not here to worry about denting the feelings of posters who are giving out bad info.

You seem to have taken great offense at being told you were wrong. YOU started the name calling. I never got ugly in return. Yes, I was sarcastic.

I'm sorry that you were offended. I am frankly bewildered at what I said that set you off. I don't know you, and I have no beef with you. I'm going to let the name calling you indulged in roll off my back.

Alice said...

I can read tone the same way you can read my mind.

Give me a break, Tales You wanted me to fawn all over you and thank you for the wealth of knowledge like some fan girl.

Go back and reread your posts to me it's full of attitude and being snotty.
You'll probably just say you're being sarcastic. Say what you want ut I don't believe for your second your motive is just to help fellow nannies.

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