Sunday

Ballot of the Books

OPINION
I was wondering how many of you actually pay taxes on your nanny income. Not judging, I was just wondering. I'd like to start paying on the books, but was wondering who really does!

42 comments:

leftcoastmama said...

We pay our nanny on the books. Soo there is one for you.

alex said...

when I was a nanny I payed on the books. Thing to make sure of is that you are considered an employee and not independent contractor. If you are a contractor you are responsible for both parts of taxes and as an employee you both pay some.

Bethany said...

I am paid on the books.

WashingtonNanny said...

I've been a nanny for 7 years/ 2 different families - ALWAYS on books.

Belle Vierge said...

My first job I was an au pair in France, so it was on the books in France (necessary for a visa, but some girls work under the table). My current job (split between New York and Toronto) is not on the books, but it wasn't intentional. This job kinda just happened; I never expected to be an au pair again. Since I wasn't (originally) going overseas, I didn't know how it worked with taxes. It was only after finding this website a few months into my job that I realized how taxes should work as a nanny, and at that point, it was too late. If I take another childcare job, it will only be on the books. I've learned a lot through this job and this website. Some things you just have to learn through making mistakes!

nashville nanny said...

I am paid on the books. I wasn't at a couple of my previous jobs, but now know the benefits of being legit.

Nanny Franny said...

I do not work on the books and never have.

It is less complicated for me and the family I work for.

I would say most families in my area prefer to pay under the table since they will have no liability if I get injured in their home. Plus, many do not want to pay the high unemployment tax.

I know there are many disadvantages of being paid off the books and I am prepared to deal w/them.

nycmom said...

Most nannies and families on ISYN pay on the books. The demographic on here is much different than the average nanny/employer.

IRL, most nanny surveys I have seen indicate about 75-85% of nannies are paid off the books. IME, this number is much closer to reflecting the general population. I have found anyone who is a celebrity, lawyer or political figure (or aspires to be) pays on the books.

Lyn said...

I'm an on the books Nanny. :)

Manhattan Nanny said...

I am on the books, but NYCmom is right. The employers who pay on the books are mostly lawyers, politicians and celebs. who can't risk being caught. It can be difficult to find a job on the books. I have interviewed with some very wealthy families who were not willing to pay on the books, including one Wall St. hot shot who's name New Yorkers would know. It's a sad commentary on the morality of our current culture.

sometimes said...

I've gone both ways. My last nanny job was on the books. MB did her own payroll. She received money from the regional center to pay childcare for her disabled child and they required payroll services to be in place.

Tales from the (Nanny)Hood said...

I am on the books, and won't work under the table.

However, I have heard from the owner of a nanny tax payroll company that 85% or more of families that employ household workers do so without paying them legally.

I wish the people coordinating domestic worker unions would put a LOT of effort into forcing legal pay. IMO, when a family pays a nanny or other domestic worker illegally, they then feel free to treat her unprofessionally.

Ms. Vivienne LePeaux said...

My previous nanny job was full-time and I was paid on the books.

I'm now working a part-time summer nanny job and get paid under the table.

princessnanny said...

I'm on the books but wish I was an independant contractor!!! I have been in the past, not as a nanny but something else, and you can write off so many things - mileage and gas to and from work, health insurance.. That adds up to a LOT and worked out in my favor previously. I was assuming I would be when I took this job (just started 2 weeks ago - was teaching prior to this)

Lauren said...

Every nanny I know IRL is paid on the books. Every job which comes through any reputable agency here in the Boston area will be looking to pay legally - at least 90% of the jobs do so, according to my sources at several well-known agencies around here.

MissDee said...

I have a sample work agreement and Breedlove info in my portfolio. Color drains from parents' faces when you have the WA and tax info, sounding well put together and professional.

Zarine said...

At my first position, I wasn't paid on the books, but am in my current position and glad too.

Chelsea said...

I am on the books--for the first time as a nanny, though. All of my previous jobs were under the table, but mostly just because I didn't know how to handle things any differently.

Now that I know my rights, and know how important it is for me to be on the books (being 21 with NO credit sucks!), I know never to work off the books again.

Beezus said...

Not currently on the books with my latest job, but I already have a pretty established credit history and my own health insurance so it wasn't terribly important to me, however in my next nanny job, payment on the books is definitely something I am going to pursue.

NannyJenn said...

I'm paid on the books and always have been.

MissMannah said...

I am paid on the books and would never again accept a job that wasn't. My last job was as an independent contractor but I only worked for them for a couple of months so I didn't have to pay too much.

1234 said...

Always been paid on the books.

Good for you OP!

It won't be easy,to find families willing to do so. but good for you.

Ice Queen said...

My 28 hour a week job I am paid on the books. For other gigs I do, short-term, date night or one day a week jobs, I am generally paid under the table, since legally you have to employ someone for a certain amount of hours or a certain amount of money per year (I think? Not a quote, just something I remember.), it doesn't matter.

I'd do either, but under the table I'd better be getting a lot more money haha.

UmassSlytherin said...

oh god another tax evasion thread. Im staying out of this one.

OhhPlease said...

I am a nanny and I am paid on the books.

NannyShell said...

I've had the same experience as Lauren. Every job that I've interviewed for in the past several years has been through reputable agencies and families that only want to pay legally and on the books.


And 1234- I've never had difficulty finding a family willing to pay on the books. It's really not that difficult to do. There are several services that are very reasonably priced that do all the "work" for you.

I understand being younger and working under the table for cash. But as people get older, I don't understand why they wouldn't want to establish a credit history, pay into unemployment, etc. I've had several friends lose their jobs and be able to collect unemployment, which has been a lifesaver to them.

nannyb said...

Nanny Shell,
I think it depends on where you live.

In my area it's very uncommon for nannies to be paid on the books.

The agencies in the area don't even encourage legal pay.

For a nanny that wants legal pay for all the reasons you listed she has to look long and hard.

It;s unfortunate but true.

Katie said...

I pay.

With my current job the family brought it up forst, which I loved. I'd never experienced that.

With the job I'm going to start in September I'll be on the books as well.

Good for you, from someone who has been ther it becomes a problem not having a record of employment the older you get.

bostonnanny said...

I'm under and have always worked pt jobs every year outside of nannying in order to file taxes yearly, i have great credit and a signaticant amount of savings that would cover me if I ever lost a job or had an emergency but I want to buy a condo in the next few years and I need to prove income. I know I will only be a nanny for a max of 5 more years before I enter into my life long profession, so I'm struggling with the idea of just saving more while being under the table or going on the books. The reality is unemployment is a hassle and doesn't provide you with much money and SS will prob not exist when I'm ready to retire. If I save everything I would pay in taxes plus some, I will be better off. As long as I start my retirement fund at 30 and make sure I save 15% -20% of my income I will have a comfortable retirement fund without SS. In the mean time I save all my money for a down payment, pay off all debt and start a nest egg so by the time I'm in my career I will be finiancially sound. By working pt I am still paying taxes that go towards public funding and able to get a credit card to build credit.
It's not that I hate paying taxes it's more that I have financial goals I want to meet and can't unless Im being paid $24 per hour gross and unfortunately I can't find any families willing to pay that on the books. I am better able to find a position paying $20 under the table which is the amount I need to survive and save.
I have recently joined an agency so I'm hoping that will help me find a job that pays on the books and allows me to save the same amount I do now. However, if it doesn't then I will continue the way I'm doing things now until.

luckoftheirish said...

Can I give ya some helpful advice? If you put at least 20% down, when buying your home, you will be offered better financing options. Generally, when less than 20% is put down, the finance company will force you to purchase private mortgage insurance(pmi). They do this because that's a high risk loan & in the event it defaults, they will still get paid. The problem with that is it costs an additional $125+/per month until you've paid a significant amount into the mortgage. Basically its a waste of your money, lol. You're obviously goal oriented, so I thought you might want to make this a goal! I'm not sure if you already knew this or not. I just love hearing peoples financial goals & helping with advice, if I have any. I hope you don't mind!

Karli said...

I would never take a job that wouldn't pay me on the books. All of my nanny families that I've worked for have gone through a payroll company or worked with a tax accountant to do it all on the books.

Nanny Sarah said...

I work for an agency where the method of payment is basically between the nanny and the family.

I would say 90 percent of the families prefer cash payment since it is much less complicated, I suppose.

I prefer to work on the books, however I need a job real bad and will accept one that doesn't pay on the books if it means having a job.

Sad, but true.

bostonnanny said...

Luckoftheirish,


I did know that, last year my now ex and I almost brought a condo together but It fell through before the purchase and sales. Looking back I'm so grateful because he ended up being a cheating douchebag who deserves to get herpes from his slut. I have a specific finiancial plan that involves graduating with my BA debt free, paying off my new car early and saving, saving, saving. So sadly I need to do what best for my finiancial future at the moment and if that means under the table then under the table it is.

UmassSlytherin said...

I think buying a condo is stupid anyways because they can always raiase the condo fee.

luckoftheirish said...

BostonNanny, you're on your way! I'm glad to hear you've escaped the cheating ex before you were legally entangled. What a jerk and you deserve and will find better. You have great goals and you'll get there! Some of the best financial advice I had ever received was to live like your broke and you'll always have money. And to not finance cars. Even tho I did once, haha. I'm in my mid thirties. You make me proud. I hope my 17 year old daughter has goals like yours. :-)

luckoftheirish said...

Umass........... I love living in a townhouse with a HOA. It works better for us than living in a single family home. We like to travrl & dont have to worry about our house looking empty, while were away. It may not sound like a big deal, but the last thing you want to do when you're traveling is worry about your house. Also, so many expenses are covered by the fees. The landscapers are here every week, we have a small yard and do no maintenence. The gutters are cleaned, the trees trimmed, etc. Regularly. We have access to a gym and a pool, rv & boat parking included in our hoa fees. Its not for everyone. But for us, this works out better for us than when we had a house, with the constant yard maintenence and had to pay out of pocket constantly for things we didn't expect. Its not for everyone, but it works for us.. :-)

Both sides said...

I wanted to note that it's true that for children under two it's wiser to have a nanny (if you can afford to pay one legally & living wage) than to do daycare. Illness is a real problem or working parents with children in daycare, and it's so much more common before their two years old, after that they seem to build up their immunities quicker. Speaking from both sides of the fence (ive been nursery & preschool teacher and a nanny) once a child is two or three (ending on the child) they are ready for, and thrive on social interaction and activities that build developmental skills that preschool and daycares should offer. That's why so many of us dread the day our babies head off to preschool and we lose our jobs or half our hours. Bummer!

Both sides said...

Oops, that was for the quest column, I'm legal by the way.

My Choice said...

I'm off the books as a nanny. I'm taking a mental break from a corporate career. I have put in PLENTY of money to the government already and plan on returning to my former career when my 11 month old twin charges go to pre-school. For now, its my money.

NannyShell said...

I'm glad you have it all worked out Boston Nanny. Sounds like you are very smart with your money and would be able to get by with savings. I hope you long term plan works out.

Just an FYI- One of my friends is currently receiving $650 a week (In MA) from unemployment, which isn't "nothing" in my opinion.

Katie said...

I worrk on the books and I am looking for a new job for when my current one ends.

Things were going well with a potential family until I mentioned being on the books.

Mom tells me that they paid their last nanny on the books , and tthat didn't go well for them because their accountant messed things up and they ended up with penalties, so now they're cash only.
She asked if that was a dealbreaker. I said yes. she then says to bad, but asks if I know any nannies that are looking. The nerve of some people.

Pants on Fire said...

At least half of these nannies who posted and said the are always paid on the books are lying.