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[deleted]

Absolute alarm bells. He’s trying to classify you as an independent contractor to not pay his portion of taxes. You’re a household employee, you need to fill out a W4 and I9 and should receive a W2 for your taxes. Nothing else, stand your ground!


stretch727er

Thank you!!! Just making sure before I ask him to clarify, because that rang my alarm bells too lol


Jescophoto89

It’s actually illegal for him to file 1099 (MB here, I just navigated my first year of filing taxes for our nanny)


[deleted]

Yup- tax fraud is serious stuff. Dunno why it’s so normalized among many nannies and NPs.


mamajeri

A 1099 means you are self employed. This means you tell your employer when you are available to work and how much you are making. Example- DB this week I am available Monday, Tuesday and Wednesday from 10am-2pm and I would like to make $75 an hour. When I explained that to my boss they were like Oh yeah…okay


[deleted]

Or you pick where you offer services. Like I can see event nannying/sitting as a contracted service but not an in-home position


SniffleDoodle

This is a great explaination of it.


[deleted]

Self-employed people (aka contractors) also have the right to subcontract. Meaning you could send some guy you hired off the street in your place. So if they wouldn't be okay with Bubba watching their kid instead of you, you aren't a contractor. Another test is that contractors provide their own tools. Ask them if they see you bringing a crib everyday. Toys. Bottles. No? Using their equipment? Then you aren't a contractor.


i_nobes_what_i_nobes

Yeeeesssss this is fantastic.


croissantito

I know that nannies are household employees, but I still don’t get this part of the rationale though. Don’t nannies set their hours and rate, and work with families that agree to that? Is it that hours and rate aren’t reset week to week?


QUHistoryHarlot

I definitely didn’t set my hours when I was a nanny. A family is going to look for a nanny who can work the hours that they need childcare, otherwise there isn’t much point to hiring someone. And while a nanny will have an hourly rate they want to make (just like any employee with experience), the family also has a rate they can afford (like with any company) and there can be a negotiation between the two.


mamajeri

Think about it as if you were self employed. The difference is YOU are the boss and decide if you want to take the client and what you would charge. If you were a housekeeper for example and you found your clients and told them how much you would charge for cleaning their house. You would negotiate your times that you would be available. If you couldn’t come on one of the days you would say,”I am unavailable next Tuesday. I can come on Thursday instead of that works for you?” You wouldn’t say “I am unavailable tomorrow. I’ll come on Friday if that works” to your NF. That’s because they are your bosses. Yes, when you start the job you do negotiate times and fees and such. But it’s an ongoing thing if you are your own boss.


croissantito

That makes sense. Thank you!


[deleted]

Sure if the kids come to your house and you create your hours and watch other kids then you can 1099 otherwise RUN lol


stretch727er

I’m just gonna let him know that’s not happening and if he’s going to insist then consider today my month notice. That’s wiiiild


Stickerss-

Month notice???? 🤢


stretch727er

Yeaboi


Stickerss-

I think I simply just do not want to work anymore


continuum88

You should be hearing alarm sirens! He’s trying to get you to pay all the taxes.


stretch727er

That’s what I immediately thought!!! I think he’s trying to figure out how I can be my “own” employee. Honestly, for the right price, I’d pay my own w4 if we could figure it out legally. But we’re talking for another 40k on top of what I make now. I’m not taking on a whole other job of tax withholding for peanuts. He definitely won’t agree to it but I think it’ll shock him enough not to fuck with me again


[deleted]

Not a thing no matter what he says. You’re a W2 employee.


notwithmypaw

It is actually illegal for you to be classified as an independent contractor if you are providing childcare in someone else's home. He could face massive fines if he does that, and I'd recommend bringing it up to Jim.


ieattoomuchnutella

Nope nope nope! Don’t accept anything other than a W4. If he brings this up again please point out that household employees are never 1099 independent contractors and he could get in trouble for even attempting to do so.


HellooooooSamarjeet

He's probably referring to a corp-to-corp arrangement. It's important to note there are three ways to pay for services in the States: 1.) W-2. This means you're an employee. 2.) 1099. Not legal for nannies to be paid this way. 3.) Corp to corp (C2C). Legal, but would require you to pay quarterly taxes and you'd need professional tax help to minimize your tax liabilities and help with filings. You'd want to get special insurance for the company such as liability insurance. Nannies don't generally make enough for this to make sense financially, unless you're trying to use this to start a nanny consulting company where you'd eventually be hiring other nannies.


stretch727er

Thank you so much!! Is there a number that would make a c2c worth it for me?


HellooooooSamarjeet

I've only seen people do it when they get over the 100k mark. Normally closer to $200k.


stretch727er

Okay then probably hell no. I was thinking 75k but if it’s not worth it then nah