It may be tempting to not pay taxes on your earning because you’ll have a little more money in your check. However, according to the IRS Nanny taxes are Federal, Social Security and Medicare (FICA) taxes, and you’re legally obligated to pay them. Your employer should withhold taxes and pay their portion of the tax, if you are paid $2,200 or more in calendar year 2020.

You may have heard from friends that they do not pay nanny taxes, instead choosing to be paid “off the books” or “under-the-table”. This practice, while common, is illegal and there are significant risks associated with it.

Here are some reasons why you should pay your fair taxes:

  • It’s the right (legal) thing to do. There are penalties if you do not.
  • You’ll be paying into the Social Security System toward retirement
  • You’ll be eligible for Medicare when you need it.
  • You’ll be eligible for unemployment insurance should you lose your job
  • Builds your credit history. How do you get a loan without a job history?
  • You’ll be able to file your taxes at the end of the year with appropriate paperwork
  • You may receive a tax refund!

When you and your employer agree to pay ‘off the books’ you are mutually agreeing to break the law. Choose The Right Nanny encourages all families to pay fair and legally.

CTRN employs our temporary team, and as such, pay all our employees legally.