19 December, 2012

X the 1099

OPINION
I just accepted a nanny position with a great family in North Carolina. The position pays $700.00 weekly for the care of 1 small child. The family has requested that I "take care of" my own taxes. I'm not sure how to do that. Am I an independent contractor? Help please! - Anonymous

14 comments:

VA nanny said...

Sorry to have to break it to you, but you by law are NOT an independent contractor. Either the parents are ignorant of the law, or they're trying to get out of their share of the responsibility.

An independent contractor files a 1090, and is responsible for paying all taxes from wages earned that year. A nanny isn't considered an independent contractor, she is considered a household employee. That requires the employers to file, and pay their part of the taxes. Which means you don't pay as much.

Obviously it's up to you, but I advise you to let the parents know that legally a nanny is not considered an independent contractor, therefore you are asking that they deal with you as an employee.

Unfortunately there are many nannies who will either ask to be paid under the table, or will work as independent contractors, which makes it harder for those of us who choose to work legally.

I had the same dilemma with my current family during the hiring process. I let them know that I would like to be paid legally, which means on the books and as an employee. They thought about it and ended up hiring me.

Tiredofassholeclients said...

If taking care of your own taxes means that they will pay you unde the table and not file their own child are tax credits, then you're ok, but if they plan to claim your work as a deduction on their own taxes next year, they are taking ridiculous advantage of your ignorance an thus NOT people Inwould ever consider working for.

Part time nannies with several clients can often enjoy an Independent Contractor status and make it work for them. The law is flexible in my experience and only comes into play when there is a dispute and nanny sues their employers. Otherwise, no one seems to care.

I would insist that you get something in writing that they will pay you under the table and not claim your emolument, OR pay you over the table. But they do strike me as especially good people.

See above said...

Um... /Employment/ and they do NOT strike me as good people

NayTheNanny said...

Definitely make sure you clarify things with them asap...that could be a deal breaker for sure, depending on what they mean.

MissMannah said...

If you've already started the job, just get a 1099 for 2012 but make sure they start deducting taxes and paying monthly or quarterly. Legally, you are called a domestic employee and your employers should be treating you as such.

To everyone posting Anonymous--can't you read?! "REMEMBER: NO ANONYMOUS COMMENTS PLEASE! JUST CLICK NAME/URL, MAKE UP A MONIKER, THEN HIT PUBLISH."

MissMannah said...

*Sorry, meant to say they should start deducting taxes in January.

♥ Amy Darling ♥ said...

*RED FLAG ALERT !!*

This family is not informed regarding paying you "on the books" + they are trying to weasel their way out of doing all the paperwork regarding taxes, etc.

It is THEIR responsibility to do your taxes. Imagine if you accepted a job at McDonald's and the boss told you he would pay your gross salary, but it was up to you to determine your own net take home pay on your own. Ha!!

It sounds like this family does not want to pay your unemployment insurance, state and federal taxes, etc. yet they still want to claim you so they can get the child-care deduction.

Sorry Charlie.
Can't have your cake and eat it too.

You are an EMPLOYEE, NOT AN INDEPENDENT CONTRACTOR!!!!!

This is a common misconception. No 1099 for nanny work, only W-2.

AA said...

That means they 1099 you, pay you a check that LATER you pay the taxes.
Better save some money for the IRS!

BB said...

I had a boss do that. She had a company and she wanted to save some money or whatever so she 1099 me.
But when she was broke, she simply ended the contract or whatever.

Karma got her though: the IRS got her for 30k later.

MaryPoppin'Pills said...

LOL, thank you MissMannah... must be something in the air?

Sam said...

Red flag. No no.

MissMannah said...

You're welcome! I hate it so much when people don't follow the rules, especially when you have them written out in big capital letters! Did you repost the 2 anonymous comments as AA and BB? That was pretty funny.

XYZ said...

No you're not an indepdendent contractor. The IRS will reject ur filing. Nannies are NEVER independent contractors, ever.

aliveinga said...

Oh MissMannah, where in the original post did she mention the family was planning on claiming a childcare deduction? I'm confused, I don't remember her mentioning that at all, does anyone else? You are "assuming" they are! I work for several different families a day here, a couple of days there and none of them use the childcare deduction. Calm way down, you ladies get so hot under the collar when it comes to this tax thing. It seems to be such a hot button topic with everyone. Its taxes! Its not the plague or armageddon, good Lord get a grip! Do you know how many folks are working odd jobs here and there and not claiming every dime so they can actually eat at the end of the day? I know I'm one of them!