Best way to pay a part time nanny?

[Train]

Paying under the table is 100x better than the tax deduction, for both of you...

You sure about that? I'm pretty sure I would get more back from a deduction than I would pay in employer-paid taxes. Even if we manage to fall in a much lower bracket this year due to the maternity leave, I don't see anything worse than breaking even.

 

[corwin]

Going rates in my area are 1100-$1300 a month for a single infant for a place that isn't a total shit hole. Luckily I have a place near my wife's office that has an employer subsidy of about $400 a month that we can take advantage of. But even with that I'm paying almost $1500 a month for a 4 year old and an infant. Unsubidized or at another daycare of similar quality at it would be closer to $2100 a month.

We *HIGHLY* considered and were temped by a nanny. But with the horror story friends of ours had, we just didn't want to dealt with the hastle. Again, YMMV and different areas may have a much better nanny pool to chose from. It's just not a very common thing where I'm at.

Holy shit...that's just insane. I have a 2yr old and a 9mo old and they're just over $500 a month each at a very nice daycare...a good friend of mine has a nanny and pays her just shy of $1500 a month for his two kids and she won't ask for more if they have another. It kills me how some locations can get away with charging so much more, I doubt they're paying their staff any better...maybe poach a staff member at your daycare, bet you could offer them more than they make and still pay less than the daycare

 

[Train]

We will be paying about $980 a month for 2 month old and a 2.5 year old. Keep in mind this is only part time. Nanny will only be doing 25 hours a week tops.

The added convenience of not having to drop off/pick up kids every day is well worth it.

We can also deduct the cost of feeding the nanny lunch every day, more win.

 

[corwin]

You sure about that? I'm pretty sure I would get more back from a deduction than I would pay in employer-paid taxes. Even if we manage to fall in a much lower bracket this year due to the maternity leave, I don't see anything worse than breaking even.

It's not just the taxes you would pay but the person takes a lower amount since they don't pay taxes on it either...that's the big benefit.

 

[highland145]

We will be paying about $980 a month for 2 month old and a 2.5 year old. Keep in mind this is only part time. Nanny will only be doing 25 hours a week tops.

The added convenience of not having to drop off/pick up kids every day is well worth it.

We can also deduct the cost of feeding the nanny lunch every day, more win.

I'd say that's cheap at ~$10/hour. And for her, she'd have 5 kids in a group care facility and make the same hourly rate.

Cash/1099 or are you going to handle the fica/taxes?

 

[Train]

It's not just the taxes you would pay but the person takes a lower amount since they don't pay taxes on it either...that's the big benefit.

Even still, that's so close to break even territory it's not worth asking her to "take less and don't report it on your taxes"

Her pay is fairly low, her taxes, give that she lives with her parents and is a college student, are almost non existent already.

 

[Lifted]

Hire hot au pair from Poland for $300 or so/week.

 

[vi edit]

Hire hot au pair from Poland for $300 or so/week.

I looked into that..errr...service? The whole system just seems shady as hell. But then again I'm not sure the wife would be real happy in the first place bringing in some hot piece of eastern block ass into the house and having her live with us full time.

 

[Fritzo]

nope. i work there. according to my logs, you've only used 72 gigs in July. We start referring to mental health providers at 150 gigs, so you have a ways to go.

 

[BoberFett]

I looked into that..errr...service? The whole system just seems shady as hell. But then again I'm not sure the wife would be real happy in the first place bringing in some hot piece of eastern block ass into the house and having her live with us full time.

If your wife is going back to medical school somebody is going to have to fill in for her...

 

[Merad]

Hire a hot foreign exchange student and pay her with 3-ways with your wife.

http://en.wikipedia.org/wiki/Au_pair

 

[momeNt]

Best way to pay a nanny?

Generally either in the car before you drop her off at home, or bent over your home office desk if your wife isn't home, or even if your wife is home and you enjoy the rush of maybe getting caught.

 

[Pneumothorax]

If your wife is going back to medical school somebody is going to have to fill in for her...

Rofl! In surgery rotations you barely have enough time to run to the bathroom!

 

[alkemyst]

She will need to be filing taxes on that income as well for it all to work out as claimable by you.

 

[Train]

She will need to be filing taxes on that income as well for it all to work out as claimable by you.

As long as we pay her via 1099, or whatever legit method, I could care less if she claimed it or not.

It's her audit, not mine.

 

[alkemyst]

As long as we pay her via 1099, or whatever legit method, I could care less if she claimed it or not.

It's her audit, not mine.

Slippery slope with her being a privateer. You don't want to be in the middle of her going on record saying 'you told her' not to file and create an audit (you'd more than likely come out ok) against you as well.

 

[Train]

Slippery slope with her being a privateer. You don't want to be in the middle of her going on record saying 'you told her' not to file and create an audit (you'd more than likely come out ok) against you as well.

Still wouldn't be my problem, her taxes are her responsibility. I am not a CPA and did not put my signature on her taxes. Any advice she "allegedly" got from me is meaningless.

 

[vi edit]

As long as we pay her via 1099, or whatever legit method, I could care less if she claimed it or not.

It's her audit, not mine.

http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/nanny-independent-contractor/

...just saying

It's not on the up and up. If you were that concerned about saving money just negotiate a cash rate that is favorable to both parties and be done with it.

(Yes I know paying cash isn't either...but that's harder to track than a 1099)

 

[Binarycow]

Hire a hot foreign exchange student and pay her with 3-ways with your wife.... .

this thread should have ended with this.

 

[alkemyst]

Still wouldn't be my problem, her taxes are her responsibility. I am not a CPA and did not put my signature on her taxes. Any advice she "allegedly" got from me is meaningless.

Just warning of a potential issue. Take it for what you will. This is a common tax shelter game and usually ends with audits on both ends.

Audits are a painful experience in both time and opening the door for future audits. Keep in mind any records you don't have will screw you. Also although people think 7 years is the limit, they can keep going back another 7 years if any misreporting or fraud is found.

I would just be clear to the nanny that you will be reporting her wages via 1099 and she will need to file taxes on them.

What happens to instigate this a lot of the time is the nanny gets a surprise 1099 when they were assuming it was a 'cash / under the table job' and the hirer lead them to believe it. They negotiate a low rate and then the sitter gets screwed.

 

[bbs lm-r]

 

[Pr0d1gy]

Probably been said already, but if she is hot then sex is the best payment....definitely.

 

[Bignate603]

Crazy that people let a stranger into their household AND pay them to watch their kids

Scary

You have a very strange view of the world...

 

[Lifted]

I looked into that..errr...service? The whole system just seems shady as hell. But then again I'm not sure the wife would be real happy in the first place bringing in some hot piece of eastern block ass into the house and having her live with us full time.

Not shady as long as you deal with people you know. The way my family have done it is to just speak with neighbors using an au pair, and ask their au pair for recommendations. They all have friends here on bullshit student visas who need work, and they usually live together, like 50 in 1 apartment, until they find that work.

They are happy to start at $300/week in Westchester NY or Fairfield, CT... might take less in other parts of the country.

I have first hand knowledge on the cummings and goings of Polish au pairs. I found them all to be very friendly.