Monday

Dear Abby gives advice to Nannies...

The Daily Journal Online


DEAR ABBY: I am a 24-year-old college graduate who has been unable to find a full-time teaching job, so I'm working as a teaching assistant. My salary is less than average, and between rent, bills and student loans, I am stretched more than thin.

Recently, a woman has been talking to me about nannying for her child after school. She'd like to hire me and have me meet her child in person, and we agreed on an hourly rate. I was excited about the opportunity and looking forward to starting.

This week she told me she wants to report my work for her on her taxes, which means I'll have to report as a freelancer and pay estimated quarterly taxes while I work for her. Abby, this is unheard of in the baby-sitting world! I have been baby-sitting from my preteens all the way through college, and never once have taxes ever been part of the conversation.

My mother says I shouldn't be upset because the woman is doing what she's supposed to as far as the IRS is concerned, but I feel shortchanged. Shouldn't she have been upfront about her intentions when we discussed my hourly rate? Am I wrong for asking her for more money per hour to make up for some of the taxes? -- AFTER-SCHOOL NANNY


DEAR NANNY: William R. Turner, CPA, says your mother is correct. Your prospective employer is obeying the law. She wants you to meet her child, negotiate an hourly rate and hire you as a NANNY, not as a baby sitter. Your new employer should have you fill out a form W-4 and pay you as an employee. Because payroll deductions will be taken out of your gross pay by your new employer, you should negotiate your hourly rate accordingly.


5 comments:

raveenapaware2017 said...

Thank you for sharing such great information.SAWIt is informative, can you help me in finding out more detail on Silicone Braided Hose,i am interested and would like to know more about this field and wanted to understand the basics of Silicone Tubing.

Unknown said...

I found the blog some what interesting in its content wise and easier to understand what they had said. I love if you publish the blogs often.
Thanks,
Kristina

Erica said...

Abby seems to have missed the mark. It appears that the woman wants to hire her as an independent contractor rather than an employee, which Abby should have advised her on given the fact that she consulted a CPA. She did get it right that nannies are employees, but should have been more clear in that regard.

Leigh Raymer said...

Erica - I completely agree, one reason we posted it was to show how smart and thorough our posters are - in past posts the amount of detail the writers present is worth good money in accounting, the dear abbey column was nice but pretty simple

Mei said...

You can't call yourself a nanny and a babysitter at the same time!

Babysitters may not pay taxes but nannies do.