Tuesday

Interesting Tax Question

I have been sitting for a family that was paying me in cash for two years. I felt too guilty not to actually pay taxes through so,I claimed t as misc work and paid taxes like a freelancer, which yes I know is not how you're supposed to do it.

Then the Mom got fired from her fancy ass job, and guess who else had to go? Me.

My questions are as follows.I never made a ton of money in this position but I sure paid a lot of taxes of it.Since I claimed these taxes, am I eligible for unemployment while I look for a new position? It would really help me a lot.

My main concern is that this will somehow get my previous employers into so kind of legal trouble. I really do love the family, would hate if this happened. But since I claimed it was an independent contractor so to speak....I just don't know but

They did give me a months severance, but being let go in a time when everyone who needed camp sitters have found them, and now people are only looking for September positions I cannot help panic about what I will be doing for money during this time of limbo. I just don't want to get anyone in trouble, but I also don't want to feel entitled to the same labor and protection benefits offered to others.

6 comments:

Anonymous said...

I'm pretty sure you can't collect unemployment. That's one of the reasons to always work legally- your employers pay into unemployment tax (along with other taxes) which is what enables you to file for unemployment. You have no proof of legal employment either. Unemployment offices would need that.

Anonymous said...

P.S. The tone of your post implies that you don't love the family THAT much...
Her "fancy ass" job? Are you resentful?
"Guess who else had to go? Me." She lost her job. How do you think that makes her entire family feel?
And before everyone freaks out at me for being a "meanie," I've had the same situation happen. An employer of mine was laid off from her job unexpectedly and so I lost my job (after a month's severance also). I went through an agency and found a new job. So, maybe do that? Or look for a non-nanny job? There are options here...

Kate said...

1.I do love the family, and and I am not resentful. I am in fact trying to figure out how to move forward making sure that I don't somehow get the family into any trouble. I am just concerned about myself suddenly being jobless. And it was a fancy job.

2. I paid taxes on all my income, under misc income -babysitting. Not super legal, not actually immoral. It was my first nanny job I didn't expect to be there long, so didn't have a problem with cash, time went by and it began to become a problem, but I was afraid of losing my job so I kept track of my income and paid the taxes myself.

Brianne Wicks said...

You're fine, and they can't get into trouble if you stick with the independent contractor option for your work with them.

But you cannot claim unemployment. Yes you were let go, but not from a position where you were paying taxes into your own unemployment fund. That money is pooled by everyone who has a tax paying job then you get your share when you're in need. But you haven't been paying into it for this position you had. I'm very sorry, it's an incredibly difficult lesson to learn especially now as its kind of biting you in the behind.

Keep looking, take any small odd jobs you can until you find something longer term. Definitely go above the table and pay taxes as a household employee next time. When you become a tax paying nanny is when you get all those protections from your state labor laws and such, you can't go suing for overtime pay or unpaid weeks of work if you're not on the books. Good luck!!

Brianne Wicks said...

You're fine, and they can't get into trouble if you stick with the independent contractor option for your work with them.

But you cannot claim unemployment. Yes you were let go, but not from a position where you were paying taxes into your own unemployment fund. That money is pooled by everyone who has a tax paying job then you get your share when you're in need. But you haven't been paying into it for this position you had. I'm very sorry, it's an incredibly difficult lesson to learn especially now as its kind of biting you in the behind.

Keep looking, take any small odd jobs you can until you find something longer term. Definitely go above the table and pay taxes as a household employee next time. When you become a tax paying nanny is when you get all those protections from your state labor laws and such, you can't go suing for overtime pay or unpaid weeks of work if you're not on the books. Good luck!!

Nan said...

This is why you need to work legally and pay taxes as an EMPLOYEE. And the NF needs to pay THEIR share of the taxes. Otherwise, you have no protections. Sorry if we seem harsh, but as nannies, we help kids learn about consequences every day. This is a lesson. Learn from it and never do it again. We're employees. Not independent contractors.

In the meantime, post everywhere for a job. And also consider working in another field as a stop gap. Maybe try retail or a coffee house job just to bring money in while you interview.

FWIW, I think we need better boundaries. It doesn't matter how much you love a family or even how much they love you. At the end of the day, it's a job. Be professional and treat it as such!