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The Pit Parenting Thread

Hmm, everything I'm reading says it's just super dangerous to try and do cash only/avoid all the payroll stuff. We were thinking of using some service (like the one associated with care.com to do the necessary withholdings). So you just pay in actual cash and then the nanny doesn't report those earnings for taxes?

It does all seem like a huge pain in the ass.
 
cookoutdeac said:
Hmm, everything I'm reading says it's just super dangerous to try and do cash only/avoid all the payroll stuff. We were thinking of using some service (like the one associated with care.com to do the necessary withholdings). So you just pay in actual cash and then the nanny doesn't report those earnings for taxes?

It does all seem like a huge pain in the ass.
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Yeah, we always paid via check or venmo and didn't worry too much about it.
 
We used Sure Payroll. I think it’s $99/month and they handle all of the tax forms and deposits.

It just wasn’t worth it to me to deal with the potential hassle. I remember the days when paying a nanny under the table were enough to get a person to withdraw their name from consideration for political appointments.
 
You plan on running for office?
 
cookoutdeac said:
Hmm, everything I'm reading says it's just super dangerous to try and do cash only/avoid all the payroll stuff. We were thinking of using some service (like the one associated with care.com to do the necessary withholdings). So you just pay in actual cash and then the nanny doesn't report those earnings for taxes?

It does all seem like a huge pain in the ass.
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The reason you do it is to avoid paying the extra taxes yourself. If you tell a nanny you're giving them a W-2, they are going to demand more money to equalize them on an after-tax basis, so you end up paying the extra tax for them. The government could catch either of you theoretically, but they aren't examining nannies, so you're the one on the hook. If you get examined, you get dinged for not withholding.

You also can claim some offsets that reduce your taxes (like child care credits) that aren't available when you pay in cash. Your nanny can also claim earned income credits if they get income reported.
 
Yeah, we reported for our nanny and paid quarterly withholding.
 
DeacDiggler said:
The reason you do it is to avoid paying the extra taxes yourself. If you tell a nanny you're giving them a W-2, they are going to demand more money to equalize them on an after-tax basis, so you end up paying the extra tax for them. The government could catch either of you theoretically, but they aren't examining nannies, so you're the one on the hook. If you get examined, you get dinged for not withholding.

You also can claim some offsets that reduce your taxes (like child care credits) that aren't available when you pay in cash. Your nanny can also claim earned income credits if they get income reported.
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Yeah, I don't know that I really want to risk getting on the wrong side of the IRS (even if its unlikely), so we're gonna just play it by the book. This is a timely question since we'll likely be starting employment of one next week barring some crazy off-the-daycare-waitlist-after-12-months scenario happening.

I haven't done the math but feel like the child care credit helps offset a lot of the matching contribution we'd be making towards SS/Medicare or whatever.
 
DeaconCav06 said:
We used Sure Payroll. I think it’s $99/month and they handle all of the tax forms and deposits.

It just wasn’t worth it to me to deal with the potential hassle. I remember the days when paying a nanny under the table were enough to get a person to withdraw their name from consideration for political appointments.
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Word, I'll check that service out too, I think the care homepay thing does all that as well and is just 75/month so I'm leaning towards just using it.
 
TimmyClutch said:
Those of you with full time nannies, are you paying them under the table or are you doing full tax forms? Are you paying them for days off during the week? How are you all doing it.

(other than Mako who pays the old lady down the street 20 bucks a day)
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Her husband helped me put down tile and replaced the showers in both our bathrooms and we had to hide a check in his wallet to get him to take any money for it. I enjoy living in the sticks.
 
TimmyClutch said:
Those of you with full time nannies, are you paying them under the table or are you doing full tax forms? Are you paying them for days off during the week? How are you all doing it.

(other than Mako who pays the old lady down the street 20 bucks a day)
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I have done both ways. I have even gone above-board and done all the paperwork myself.

I fucking do not recommended doing it all yourself. It's a motherfucking chore and a half. Also, explaining withholding to a 20-something Nanny is just...man, fuck that was just a shitty year. In all, I probably spent over 20 hours on just the book keeping and employment commission paperwork. Value your time accordingly.

I could see paying a modest fee for a service (I have done this), but, by far, the best childcare experiences that we've had were just paying people we know reasonable fees.
 
poppinspayroll.com It was something like $40 a month. Does all the paperwork and deposit stuff.
 
Looks like my son has Covid. I have the conflicting feelings that I’ve failed him and that there was absolutely nothing more I could have done to protect him from it. Listening to his little 15 month cough and wiping his nose 10 times a day is hard. Here’s hoping it all stays mild, but this experience has doubled down the feeling of caring more about someone else than I ever have myself, a very powerful feeling.
 
TownieDeac said:
Looks like my son has Covid. I have the conflicting feelings that I’ve failed him and that there was absolutely nothing more I could have done to protect him from it. Listening to his little 15 month cough and wiping his nose 10 times a day is hard. Here’s hoping it all stays mild, but this experience has doubled down the feeling of caring more about someone else than I ever have myself, a very powerful feeling.
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When my daughter was 3 months old, I gave her RSV, which is really serious for babies. She had to spend 3 night in the hospital and I was devastated and scared. I hope your son is ok and I hope you parents are too.
 
TownieDeac said:
Looks like my son has Covid. I have the conflicting feelings that I’ve failed him and that there was absolutely nothing more I could have done to protect him from it. Listening to his little 15 month cough and wiping his nose 10 times a day is hard. Here’s hoping it all stays mild, but this experience has doubled down the feeling of caring more about someone else than I ever have myself, a very powerful feeling.
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Weird isn’t it. Very little makes me feel more helpless than my little ones being sick. Hope he gets to feeling better soon. If it’s any comfort, I have it to my youngest and we’re going through it right now. Save putting him in a plastic bubble, I’m not sure you could keep him from getting this.
 
Agree, I still sometimes just watch my son sleep after I’ve read to him and think about how much I love him and all the things I want to do for him, and he’s 7. Townie hope your little one is better soon.
 
Vibes and hope y'alls little ones recover quickly, Townie and Mako, just went through it last week w/ my 6 month old and definitely the toughest test yet being a parent, such immense guilt (probably undeserved but hell if my brain wants to be rational) and helplessness. Just wish you could take the burden from them and carry it yourself, 100 times over.
 
cookoutdeac said:
Vibes and hope y'alls little ones recover quickly, Townie and Mako, just went through it last week w/ my 6 month old and definitely the toughest test yet being a parent, such immense guilt (probably undeserved but hell if my brain wants to be rational) and helplessness. Just wish you could take the burden from them and carry it yourself, 100 times over.
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+1
 
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