"Smile. It's the first thing everybody likes about you."

Tuesday, April 6, 2010

Nanny Tax?

Along with tutoring, I've started babysitting as well. Yesterday while babysitting, the mother told me something about "deducting taxes" from my paycheck. Immediately I was thinking, "uhhh what?" ... I've never really babysat on a regular basis, but from what I know, when it comes to babysitting, you just come to babysit and leave with either a check or cash. When did taxes get involved?

I asked Philip and a couple friends and they all thought it was weird that she'd take taxes from me. Who does that? Friends told me that "That's stupid", "She's not a company..." or even "She's trying to jip you.." And although I found it really weird to not treat me like a "normal" babysitter, I didn't think she'd try to jip me or treat me unfairly, cheat, or just anything negative. She's such a sweet lady!

So I googled it up, and apparently there's a law, often referred to as the "Nanny Tax", that I've never heard of. Being a nanny, babysitter, or just anything of that nature is still considered a household employeee. Even if a babysitter only works part time or comes in just once a month, as long as they make at least $1500 a year, the Nanny Tax is required. Tons of people don't know about it and a huge percentage don't even pay it. And although chances of catching someone not paying are slim, it's still a law!

I'm glad I know now. Looks like the folks I babysit for are law-abiding citizens ... good people hehe.

I got a check today though, and nothing was taken away. So now I'm more confused. Maybe I'll pay something at the end of the year. I feel really clueless when it comes to this stuff. She mentioned W2 forms and not once in my life have I ever filled out such a thing. Welp, now's the time to learn I guess? It's not even a real job, it's just babysitting!!! hahaha... Tja!!

("Tja" is German for "Oh well")

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