Any tax experts? what did my boss mean by "handle your taxes yourself"?
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I am a nanny. I've recently started working for a family, 3 months ago. When I asked about taxes, they informed me that I am to handle my own taxes myself and "hopefully if ...show more
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Answer:
They are treating you like an independent contractor. You are correct, nannies are household employees and need to be treated as such. You may want to forward them these: http://www.mynannycontract.com/can-i-treat-my-nanny-as-an-independent-contractor/ http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Hiring-Household-Employees
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Other answers
W4 not W2. They give you a W2 with your wages on it. You can file an SS8 and the IRS will determine you are an employee and they will go to the guy and make them pay. You will also lose your job.
Cathi K
Does he pay you in cash or by check? If you are paid in cash, he is probably not reporting you as an employee. It is illegal. No W-2, No Social Security, No Medicaid. But if he is also reporting your money as an expense, he is really cooking the numbers and the job can be an issue. He is implying you are an "off-the-books" employee"
Andy L.
He is apparently considering you an independent contractor. That means you will need to make estimated quarterly tax payments and at the end of the year declare all income as if you were a private business. Typically your salary should be higher to cover FICA SDI and other witholdings typically paid by an employer.
G
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