Advice needed about using nanny

[flockofmoosen]

Hey! So, I'm starting a new part-time job in early-mid February, or whenever I can solidify day care for baby girl.

I have my neighbor available for two days, and I need a nanny or something for the third day. We joined Care.com to search for people and post an ad, and we have some responses so far. I scheduled an interview with one person so far for next Tuesday at a public place and asked her to bring ID and references. I am still waiting to hear back from a couple more people who we really liked on paper. One girl responded to both of our ads 1.5 days ago (we had two because I didn't know I was creating an ad when we were signing up, and then created one later), and today she said she already has a position. I'm thinking, then why did you message me? It's too bad, I like her on paper too.

So, my question is...do we do this legally or pay the nanny under the table? We looked very briefly at all that it entails to become this person's employer. We pay taxes, file for it, etc. Sounds really complicated and frustrating. Care.com will do it all for you, but we have to remain members the whole time and it costs a boat load. We only paid for one month so we can find our nanny and then cancel membership. If we do it under the table the nanny takes home cash each week with no deductions, but then we're not really protected if she has a complaint. It's too bad they no longer count as independent contractors.

Have any of you guys used a part-time nanny before? How did you manage payment? Did you have any issues filing if done legally? What's the worse that could happen if our person is honest and not a jerk? Do you think we'd be OK doing this under the table? We're in New York (western NY) if it makes a difference.

[becole]

I don't use a nanny but I would never pay anyone under the table because the IRS is scary and throws people in jail for small offenses and they have the money and power to find everything.

[Deleted]

I don't really know what I'm talking about but you can probably issue a 1099 and they'd be responsible for filing a SE schedule. Turbotax probably has some useful info.

[flockofmoosen]

No one has said that they want to be paid under the table...it's just something that we were wondering about.

And there is more to it than just letting the nanny file her own taxes. I am her employer, and she is not an independent contractor. That means I file forms with NYS Labor Dept and the IRS quarterly and pay towards her SS and Medicare. I have to deduct these taxes from her paycheck every week (or whenever we agree to pay her). It sounds like a lot to keep track of! Here is the official website if you're curious: www.myhomepay.com/Answers/State-Nanny-Tax/NY/Overview

I actually think that if we do the nanny thing we'll do it legally...but I didn't know about all of this stuff before and it's overwhelming!

Ok, maybe a better question is how did others handle this? Did you use services or did you manage it all by yourself?

[becole]

I can't remember who on here uses a nanny. Somebody does. Hopefully they'll catch your post.

[SpinsOffResonance]

Jan 21, 2015 19:57:52 GMT -5 becole said:

I can't remember who on here uses a nanny. Somebody does. Hopefully they'll catch your post.

Ibackbevo has a nanny I think, but she's probably not here

[QOTRnew]

We have a nanny and use care.com's payroll/tax service without maintaining a membership on care.com. It was Breedlove and now it's called Homepay. My husband cares for it all, but he said the staff is very helpful. He enters her time worked weekly and she receives a direct deposit. If you have any questions, let me know and I'll get answers from my husband.

Also, from everything we read, you aren't allowed to issue them a 1099 because they are considered an employee, not a contractor.