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")
Tuesday, April 6, 2010
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