I was recently offered a new position. The family gave me the option of whether I preferred them to pay me gross and I will pay my taxes at the end of the year, or they will withold the taxes themselves and will write me a check for that amount to pay my taxes with. They won't have me sign any tax forms, and this has left me baffled. Are they trying to get out of paying taxes? I don't want to be screwed come tax time. Thank you for any insight.
Friday
Am I Getting Screwed?
I was recently offered a new position. The family gave me the option of whether I preferred them to pay me gross and I will pay my taxes at the end of the year, or they will withold the taxes themselves and will write me a check for that amount to pay my taxes with. They won't have me sign any tax forms, and this has left me baffled. Are they trying to get out of paying taxes? I don't want to be screwed come tax time. Thank you for any insight.
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You need to decide with your own conscience whether you want to work on the books or not. If you don't, then take the gross pay option but know that you can't collect unemployment and you aren't paying into social security. Nannies are not independent contractors so 'paying your own taxes' like you are self-employed isn't really 'legal' in the eyes of the IRS. If you want to be paid on the books, then your employer should withhold the taxes from your gross pay. The money that they withhold THEY send into the state 4 times a year and the federal gov't once a year. In January, they give you a W2 stating the wages you've earned and the money THEY withheld and you file your tax return by 4/15.
Neither option is legal. Federal law states that nanny is an employee and cannot be treated as an independent contractor and pay her own taxes.
Trying to "gross up", which is the other option they have offered is also pretty shady, plus what happens if they just "forget" to pay those taxes?
Figure out what you need to earn to pay your bills. Present them with a salary figure that will cover that amount after taxes are withheld. You can find salary and tax deduction calculators online.
Then they need to find a company like HomeWork Solutions that will deal with all the paperwork properly so you can rest easy and not fear the possibility of a huge mess and an audit.
You have to fill out a W-4 so they know what to take from your pay for the taxes. If they don't have you fill out this form then I would consider that a little shady. You can go online and google W-4 and print one out for yourself and bring it to them. Make sure that you tell them you want them to take out the taxes and give you a W-2 come January. Also make sure that you know how to calculate your witholdings so that way you know that they are not screwing you out of money.
I agree with everyone. I'd bring the information to them and tell them that come tax season if you don't get your W-2 that means when you file taxes, they can get screwed with tax fraud. I would also demand they go through a payroll company.
Not legal. I would not take the job, because these people are dishonest.
OP here. I turned the job down. The situation didn't sit well with me, and I was not about to work 'under the table' which it sounded like what they wanted without really saying it.
Thank you for your input!
A lot of families prefer to pay "under the table" since they can skip out of paying taxes. They do not want to be burdened with unemployment insurance, Social Security, Medi-care, etc...plus they do not want the liability if you get hurt on the job to be able to sue them for unsafe working conditions. Some may not want to pay overtime over 40 + hrs a week and some won't even pay minimum wage. A lot of families cut the hourly wage when a person stays overnight since the child will be asleep the whole time supposedly.
Working under the table has advantages if you are getting welfare, food stamps, SSI and/or school grants for being low-income. But it can have it's downfalls as well since you have no valid employment history, cannot get a mortgage or car loan since you show ZERO income plus if your family lays you off, you cannot collect unemployment to live off of.
Sounds like you and this family were just not a good fit. There are many honest families out there and I hope you find one soon. ☺ ☻
"Working under the table has advantages if you are getting welfare, food stamps, SSI and/or school grants for being low-income."
This is not an advantage. This is a ridiculous and ignorant statement. I am a single mom and I work full time and get a very little bit in food stamps (about a 100 dollars a month.) That is all we get.
I claim everything I make. It is not only illegal not to claim all income(for SSI and School Grants as well) but it is dishonest.
This is horrible advice to give anyone. The rest of us who work full time, claim what we make and get less are missing out over those who lie on their applications. People are always complaining about welfare people. Well not all of us try to cheat the government. To imply that there is nothing wrong with it is ignorant.
@Disgusted:
I never said it was right to cheat the government..I never even said it was a good idea. I was just stating factually why some people work under the table. I never said I agreed w/it.
I don't.
Stop trying to paint me in a bad light. ♥
I don't have to paint you in a bad light at all: you did it yourself. You said there was an "advantage" to working under the table if you received government assistance. Your tone was nonchalant, and you definitely implied that it was acceptable to do. If you didn't think so, you would not have suggested that at all.
It sounds like they are trying to pay you on a 1099. You'll have to pay both sides of Social Security as well as your taxes, and they won't have to pay a slew of other taxes and fees.
It's illegal as hell. 1099s only apply if the worker DOES NOT report to a daily location for work, and obviously you do.
So, yes Virginia, they are trying to screw you. And if they will do it now, they will probably do it later as well about other things, like cleaning and cooking and shopping, none the duties of a professional nanny.
Relax disgusted, JMTCJN was being informative. I didn't see her give an opinion either way - just that for those willing to work under the table while collecting some type of monies or assistance from the government, it would be beneficial.
It's fucked up that anyone could be so illegal and underhanded but as bad as economical times are right now we can at least see why they would do it.
Geez disgusted...where did that attitude come from? Why are you hating on JMTCJNS? I agree with Fan of Phoenix. If you read the statement, she didn't say she condoned receiving government assistance and working under the table. When she said it was an advantage, she was speaking from a third party perspective. Not from a first person.
Jealous much just because she is pretty?
Kimber,
Are you 12?
Simmer down. Arguing over the internet is pointless. Give it up already.
I really hate it when people say "simmer down, stop arguing over the internet." THAT's pointless.
Mind your own business. This is a free country. We can express our opinions if we want to.
I'm sorry you feel that way, MYOB.
No I am actually 45.
I agree that JMTCJNS was not advocating working under the table and cheating the government. She was clearly stating things as they are.
I can also see how a fan of Phoenix says that in these difficult times it is tough to make it, etc. Everyone these days is trying to survive which is not an easy thing. *Sigh*
digusted, i think u are just looking for a debate. Well it didnt work.
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