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Old Jan 20, 2012, 10:23 pm
  #4  
Landing Gear
 
Join Date: Apr 2006
Location: New York City/NY22
Programs: AA Platinum 2.3MM (Lifetime PLT)
Posts: 5,285
Frankly, I am stunned that an attorney would even hint that you should pay an employee off the books.

Also, how in the world could anyone think for a moment to even suggest aiding in the commission of fraud on an insurance or "entitlement" program is somehow okay?

OP, what do you think will happen if your nanny is injured on the job and it is discovered that you have no Workers Comp. insurance? Anyone here know what the minimum penalty demanded last year by the State of New York was for failure to carry Workers Compensation insurance? It was more than $50,000 even for one employee! (I'm not saying they collected it in every case, but they did demand it.)

Then there's state-mandated disability insurance. Think you can go without that as well?

Think off the books nannies don't get injured and then threaten to blow the whistle on the families who hire them? Think again! Do you want to take this risk?

Let's start with you reading this publication: Paying Social Security tax on a household employee which is really basic.

Then, consider that you need to obtain an I-9 and if the candidate is eligible to work and assuming you conducted a background check, you'll then need a W4.

Of course, at this point you haven't even made out a single payroll check. While there are people who say they can do all this themselves, I recommend a payroll service like Paychex who will calculate all the deductions properly, pay all of them, and most importantly, file every form that needs to be filed, e.g. the NYS-45.

Personally, I would not take the risks in hiring off the books household help. Apart from it being unquestionably illegal, I think doing so is one of the dumbest ideas around. If you have any doubts about this, please consult an attorney.
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