THE FACTS:

• A nanny taking care of your children in your home – whether full or part time – is your employee.
• If you pay your nanny more than $1,500 a year, you are required to withhold and pay Social Security, Medicare and unemployment taxes.
• If the IRS discovers that the income has not been filed and taxes have not been paid, the employer could be on the hook for the taxes, disability and unemployment. For a nanny making $600 a week, the social security taxes alone would add up to about $25,000 over five years, and that doesn’t include penalties and interest.
• Most nanny tax evasion is caught as part of a larger audit, or when a nanny is fired or hurt on the job and goes to the state for compensation.

Sources: Internal Revenue Service; Daily News research

SITES:
www.irs.gov/publications/p926/index.html (Household Employers Tax Guide)
www.nannynetwork.com/NannyTax/index.cfm
www.4nannytaxes.com

Posted by Barbara Correa at 4:40 PM | Permalink | Comments (0)

Earlier today I was rushing like most to get out of the house with my son and realized after I pulled out of our garage I left my cell phone on my coffee table. I pulled up to the back of our home in the ally (our front door is 25 feet from the ally) and ran into the house to retrieve it and left him in the car with the doors locked and windows up. I was gone for LITERALLY about 45 seconds and returned to the car and sped off. I took him to the park. Apparently, while I ran inside of my home, my license plate was noted by a neighbor and called into theSanta Monica Police Department for Child neglect and endangerment. The Santa Monica Police Dept proceeded to interview 3 out of 4 of my neighbors about my ability to parent while I was out at the park. They came with a long list of questions and concerns and shared them with my neighbors. So unaware of this, at about 3PM, as I was playing with my son on the couch, the Santa Monica Police Dept shows up at my door letting me know that they had a report called in for child neglect and they had to investigate us and child protective service would be involved. At this point I am frozen in fear, teary and shaking with the police in my living room accusing me of being a bad parent and scaring the !@#$ out of me. Freaking out I of pleaded my case not knowing that this is illegal. I knew it was wrong when I ran into the house and left Cooper but not illegal. I was given a notice type citation and had to call the SGT of the Santa Monica police Dept and plead my case. After review they have decided to not file a report and send it into Social Services. I just want you all to know you never know who is watching and that small errand in the store or that quick trip back into the house or post office, coupled with someone who has nothing better to do is a dangerous combination. All they need is a license plate number to track you down and scare the !@#$ out of you. Please be warned and I hope nobody ever has to go through this.

Posted by Barbara Correa at 3:56 PM | Permalink | Comments (2)