What is the risk with paying Nanny without W2 payroll? (USA)

NVIDIA
nwyvsfsvh

Go to company page NVIDIA

nwyvsfsvh
3d 28 Comments


We really like a nanny (fulltime employment) but she doesn’t accept W2 payroll (USA). She prefers cash/check and will file tax with 1099.

Few websites online say W2 is must for Nannies but looks like in practice, a lot of the Nannies are paid via cash/check like independent contractors.

Wanted to know what’s the biggest risk with paying nanny via cash/check.

Is it tax payback (or) any other penalties? If there is a tax audit, is there any impact on H1B visa?

The total pay being higher is not a problem for us at all. We are going to try to convince nanny to accept W2 payroll but wanted to know what the other options are. #parenting #workingparent #childcare #nanny

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TOP 28 Comments
  • We put in all our ads that the nanny must work as a W2. What will you do if she is injured on the job and you don't have workers comp? What will you do if you get audited and the IRS finds out you had an employee? What will your nanny do if she is let go and needs unemployment?

    Many of these are just monetary problems but just not worth it. I would never hire household help without them being on a W2 and fully legal. Yes it is unlikely you will be caught but why risk it to save a couple thousand a year.
    3d 4
  • Splunk
    yNtG42

    Go to company page Splunk

    yNtG42
    Probably a ton of legal and tax liability for you. Doesn't seem worth it if you can afford to pay over the table.
    3d 2
    • NVIDIA
      nwyvsfsvh

      Go to company page NVIDIA

      nwyvsfsvh
      OP
      Cost is indeed not a problem for me. Issue is finding someone who is as dependable and trustworthy as this nanny (based on my friends’ experience). Any ideas how to go about it?
      3d
    • Splunk
      yNtG42

      Go to company page Splunk

      yNtG42
      Ask her how much she'd want to make over the table. Maybe she wants $20/hr, so you'll have to pay her $27/hr (or whatever) to make sure she gets $20 in her pocket at the end of the day.
      3d
  • T-Mobile / IT
    Bluetick

    Go to company page T-Mobile IT

    Bluetick
    Liability. For you.

    Don’t be stupid and put your future work or citizenship status in the US at risk. If you end up with a problem and Immigration becomes aware of it then it will be used against you in the process.

    Find another Nanny.
    3d 1
  • Uber
    Shaadi.com

    Go to company page Uber

    Shaadi.com
    Desi?
    3d 0
  • Yahoo
    jtOQ60

    Go to company page Yahoo

    jtOQ60
    If you believe she is going to file a 1099, the joke is on you. She won’t want to show an I-9 either.

    Both are bad signs
    3d 0