Wednesday

Tax Trauma

It's just a picture. 
URGENT!
I need help. I am a nanny from Rhode Island who came to work at the beginning of the May in Boston. My pay was to be $880 per week, cash. I don't have a contract. My boss is having problems with her previous nanny who is trying to file for unemployment. They have kept me out of the details except the nanny is reporting them to the IRS for paying the housekeeper and me in cash. The housekeeper is illegal, so they fired her and have a new housekeeper starting next week who is legal and working on the books.

My boss told me I have to fill out a tax form. So the date on it is 5/1. She wants me to fill it out and assume tax liability for my share since May 1. This means that I would be paying about $70 in taxes on my share, per week. Am I within my rights to say that I will sign it but she needs to reimburse me the almost $700 I will be liable for? Since she is having a problem with her current nanny, I think she wants to not have a problem with me. I really wanted to take home the full $880. Would it be a stretch to ask if she could pay me $50 in cash per week to offset the taxes? This is not my problem, it's hers. I have no problem working on the books, but would have negotiated my take home salary with a keener eye.

This is ongoing. She texted me and asked me if I signed that form yet. She also sent me an email that said, "Starting August 1, 2015, you will be paid from a household account payable at Bank of X".

9 comments:

Anonymous said...

You need to write up a contract up immediately. This means that if you are being paid on the books, both, you and your employer are responsible for paying taxes (ss, unemployment insurance, and income/federal). If you didn't have a written agreement beforehand, you might not have any power to negotiate your salary at this time, but you are entitled to paid vacation and sick days, and over-time. Weekends should also be put in your contract, generally you charge more for weekend hours. This is a good thing, you'll have more control over your position, and your employer will be accountable. You can try to renegotiate salary, the worst that they could say is no. Just don't try to get it in cash.

Anonymous said...

(btw, I'm also from RI so I know what it's like to be a nanny there).

Nanny C said...

I do believe you are within your rights to ask to be reimbursed, as they were violating the law by not withholding taxes in the first place. You are considered a legal employee. This means your employer is always responsible for withholding taxes and paying their personal share on your income. Do NOT agree to sign a document dated for May 1st, though, or you have no opportunity to fight it if your employer does not reimburse you.

Sara said...

They are responsible for their share of the taxes and you're responsible for YOUR share. If you need 880 as take home pay, raise your rate so that your after tax income (net) is 880. You may have trouble receiving that rate depending on going rate in your area.

To be completely frank, I have no sympathy for tax dodgers whether they be NFs or nannies. We all need to be paying our share ( and working with a contract )

Heidi said...

I would suggest asking for a raise in what you make per week. Like if you wanted to make 800 per week, you should have a net pay of 900 ish so that your take home pay is still 800. Just tell her you wouldn't be able to work with making 70 less per week.

Anonymous said...

Quote:This is not my problem, it's hers.

Wrong! You are both equally in the wrong here. Own your mistakes! That said, they need to pay the taxes. Your 880 needs to be calculated as if it was net though for those weeks. Then renegotiate the new gross rate in a contract.

Angi

Lacy said...

Because they were paying you illegally from the start... they should be responsible of fixing this issue. Don't sign anything, they screwed you over from the start. After they fix it, negotiate a new rate

this_nick said...

You are seriously bitching about having to go back and pay the taxes you should have paid in the first place? I cannot with you. Nope, nope, no.

Diana Briceno said...

Get over it, taxes are a part of life and you are no exception.