W2-1099-schedule H

Need to decide which option is best:
Schedule H
1099
W2

I started working for a family at the end of October for $625 a week. They were paying me under the table, but since it’s a new year, they would like to put it on the books. She offered to raise my pay to $700 to cover the difference once taxes out.

I figured if i went with the W2 choice, maybe she would do $500 on the books and $200 under the table. But i believe if she brings this to her accountants attention they would say no.

1099 isn’t the best option for me, saving is hard! And will owe the state about 4-6k. Just pointless to put myself in a egg shell!

I heard about schedule H being an option for nannies, but really don’t know much about them. I did hear you don’t have to take federal taxes out and still get paid cash!

PLEASE HELP! Let me know your experience and what you decided or would do!

Comments

You need a W2. You are not an independent contractor which is what a 1099 is essentially for. I would insist on a W2 so your employer is paying her share of the taxes.

It's illegal to do anything other than a W-2. That's it. Figure out what you need to make each wake and make that your net rate. Then the nf pays a gross amount and does taxes. Anything else is risky

I would never have my nanny families pay me on the books. It draws too much confusion for the IRS. They will come back and say to you that you own a business and ask for all these weird details! I ran into this problem when I worked as a dance teacher. I got screwed over. 1099 is not a good option and neither is a W2. If you submit the W2, they will ask you to provide a business code and all this other stuff....trust me, they will rip you dry! You will end up paying a lot of money out of pocket. Please reconsider talking to your nanny family. The family you nanny for, will be making a lot of money off of you for tax time, they will be getting everything they pay to you in full....this is what happened before to other nannies I know. The jump from $625 to $700 may not help. Sadly, you will end up owing more money than you make in a month if not more.

Please reconsider and talk to your family you work for!

Another poster advocated doing things off the books. She's already mentioned in previous posts about witnessing parents shooting up, hearing from her charge about sexual abuse, and seems to be hesitant about reporting such things, even though she is a mandated reporter and is legally obliged to do so. Perhaps because she's doing things off the books and worried it will come back to bite her.

Keep it legal. Do not give parents leverage over you. It's a W2. You are an employee, not independent contractor. Pay your taxes and make sure the parents pay their share as your employer. Also, this will go into your unemployment if you are laid off or fired for reasons that are not your fault, or forced to quit because of a abusive or hazardous situation for you.

Another poster advocated doing things off the books. She's already mentioned in previous posts about witnessing parents shooting up, hearing from her charge about sexual abuse, and seems to be hesitant about reporting such things, even though she is a mandated reporter and is legally obliged to do so. Perhaps because she's doing things off the books and worried it will come back to bite her.

Keep it legal. Do not give parents leverage over you. It's a W2. You are an employee, not independent contractor. Pay your taxes and make sure the parents pay their share as your employer. Also, this will go into your unemployment if you are laid off or fired for reasons that are not your fault, or forced to quit because of a abusive or hazardous situation for you.