Originally Posted by Landing Gear

Uh, you're welcome. But since you know the law, here's a question for you. Prospective nanny says to you, e.g., I want $400 a week. You say you're willing to pay $400 a week but the nanny then specifies, "I want it in cash." You then suggest you will, as you put it, "gross up" her wages so that after taxes it comes to $400 a week. Question: Are you, in reality, paying her taxes? If so, is the money you are paying above the original $400 taxable income to her?