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Think you won't get caught hiring your nanny under the
table? Think again.
There are many
ways that even an amicable parting between you and your nanny could
result in you facing an investigation or audit. Just a few of
the ways you could get caught include:
-
Unemployment: You terminate your nanny's
employment. She's now out of work and files for
unemployment benefits. When asked about her last place of
employment, she names you. There are no records of you paying
employment taxes and YOU GET
CAUGHT.
-
Workers
Compensation: Your nanny gets hurt
while working in your home. Now she can't work but still needs to
pay her bills, so she files for workers compensation. Because you
hired your nanny illegally, you didn't/couldn't get workers
compensation insurance, she reports you in order to obtain
benefits, and YOU GET
CAUGHT.
-
Social
Security: Your nanny is older and wants to retire. Upon
retiring, she claims social security benefits. Her benefits
are lower than she expected, and she realizes that for the
time you employed her illegally, she wasn't contributing to social
security. To obtain more benefits, she reports her employment
with you to the Social Security Administration, and YOU
GET CAUGHT.
-
Taxes: You
think you're smart and describe your nanny as an independent
contractor responsible for her own taxes. Then your nanny's
tax bill comes due and she realizes that she's responsible for
both the employer's and employee's share of social security and
medicare, resulting in a much larger tax bill than she expected.
She complains to the IRS about the unfairness of it all and
YOU GET CAUGHT.
Do
you see a pattern here?
And
these examples don't even include the equally common scenario
of a disgruntled nanny, upset over some perceived slight,
who quits and turns you in herself (or worse yet, tries to blackmail
you).
Or
the neighbor/co-worker/family member who is envious or has
always had a grudge against you who reports you.
Or perhaps the IRS
decides to audit you and notices the large amounts of cash or checks
flowing out of your bank account every two weeks and gets
suspicious.
Under any of these
scenarios, the result is the same: YOU GET CAUGHT
and face the consequences,
including paying all back taxes, interest, fines, civil and criminal
penalties and potentially ruining your reputation and
career.
It's just not worth
it. Let Legally
Nanny® take the worry and hassle out of your
life so you can enjoy your family and do it all with the peace of
mind that it's done legally. Contact
us for a free consultation
today. |