Ok, this does, but doesn't, have anything to do with the babies...
I'm a self proclaimed "rule-follower." So I decided that we need to pay our nanny legally. I can see why most people don't do this! I have spent many, many hours researching how to do this... it's NOT EASY! I finally found the proper agencies, the proper terminology, the proper "how to" documents... Then I found the pertinent pages and sections and proceeded to read the legal, "government-speak" even though my brain is already mush from taking care of 9 month old twins!
Today, I registered us as "household employers" with the IRS and the CA employment agency. Then tonight I finally figured out what taxes I need to withhold on the nanny's behalf and what ones we need to pay (and how much they are). Then I put together an excel spreadsheet to help me figure this out every pay period. There are TEN different taxes that we need to withhold!!! And I have to report this to both the IRS and the state every quarter... Holy crap!
I'm glad to be done with it... now I have to negotiate with the nanny because she is hoping for a certain amount of money as take home pay but after taxes she'll be getting a lot less. But Dick is not keen on paying her any more... She agreed to an amount but then later decided if we take out taxes she'll need more... after she had been working for us for a week or two. (Yes, she's been working for us for about a month now and I'm just now getting around to this.)
What a pain! Add to this that I'm not all that thrilled with her anyway. She's ok... I just don't love her. I think she's kinda fake. She has been a little tiny bit dishonest with me a time or two. I think she just didn't want to look bad... But from what I can see on the "nanny cam" she's taking good care of the babies and they seem to like her.
Well, I'm off to recuperate from that spreadsheet experience!
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Nobody will every take care of your babies as well as you. Well maybe Gramma will or Auntie. That's why Mom and Dad worked different shifts, so they could raise us themselves, but it sure wasn't easy. We don't have quite so many taxes here. Could she be considered self-employed rather than employed by you and it's her responsibility to report her income and pay taxes quarterly? Just a crazy thought... sorry to add to the mush.
ReplyDeleteWouldn't a 1099 be a lot easier? That makes her a private 'contractor' and she pays all her own taxes as a self employed person. If she doesn't pay they come after her...you just provide her and the govt with a statement saying how much you paid her. Check it out... don't know if it would work for her. Just what you wanted... more research.
ReplyDeleteActually, the IRS says a nanny is not an independent contractor because I tell her how to do her job instead of her doing it the way she sees fit... Oh well... that would have been a LOT easier. :-)
ReplyDeletewow, i admire your persistence. i would have given up when it got so complicated. our nanny (she's actually a doula!) is claiming her taxes herself. i bet that means i can't claim any childcare expenses, though, doesn't it?
ReplyDeletewhy do they have to make it so hard?????