Getting Caught

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 consultation today.

Legally Nanny • 714-336-8864 • info@legallynanny.com