(Closed) Okay legal bees (Or anyone!!!) .. I have an “employment” question! HELP!

posted 7 years ago in Legal
Post # 3
1723 posts
Bumble bee
  • Wedding: June 2012

The law generally recognizes agreements parties make with one another, even if they wouldn’t be acceptable to everyone.  I think in this case, there’s really nothing you can do.  I don’t know the tax implications of using “babysitter” but I think you just have to tell them that if you work for them in the future, you need more money.

Post # 4
46414 posts
Honey Beekeeper
  • Wedding: November 1999

Have you contacted your tax department? You can appeal every decision. Set up an appointment to meet with someone and explain that you were hired as an hourly employee.

I have no idea why the designation of “babysitter” vs “nanny” affects whether or not you are considered a business. In Canada parents can deduct the cost of child care but it certainly doesn’t turn an hourly employee into a business.

Post # 5
2651 posts
Sugar bee
  • Wedding: May 2016

did you have anything in writing? if not, then I am not sure where to go from there….

Post # 6
3520 posts
Sugar bee
  • Wedding: March 2012

@LoveMySailor1018: It’s natural that they would use you as a write off, but if you made less than $8375 (for 2010), then you are exempt from paying income taxes as an individual.

Post # 7
1986 posts
Buzzing bee
  • Wedding: June 2012

Yes, it is illegal- if they are going to claim you on their taxes and not pay you under the table they need to pay you minimum wage.  The also need to with hold part of your taxes.  I have a lot of research on this because I went through a very similar situation- message me- I’ll give you my information once I get home today.  You were not a babysitter- you were a nanny.

My situation was a little different because I ended up convincing them to not use me as a tax write off and pay me under the table. 

Post # 8
3041 posts
Sugar bee
  • Wedding: May 2010

Not a legal bee, but I know some stuff about this…

About how much did you make total working for them?

Also, did you get paid the full $50 or did they take money out from your paycheck at all?

Post # 10
375 posts
Helper bee

Sounds like they counted you as a household employee but didn’t pay the required FICA taxes (unless they paid them but did not withhold them–that is allowed). That alone would account for over $200 owed based on your $2800 figure, above. (And I don’t think you can be exempt from those the way you can Federal income tax.)The rest could have something to do with your state laws.

And while I no longer use H&R block for my taxes (FI is an accountant, I save $$ by having him check my returns), they’re usually pretty good. If you think there’s something wrong you can ask them to review your return.

If you made over $1600 then, yes, you were covered under the FLSA and should have been paid minimum wage. I believe you CAN ask them for back wages but I’d probably let it go (not to mention what headache the taxes would be for *this* year to deal with delayed wages, etc.).

Post # 12
3041 posts
Sugar bee
  • Wedding: May 2010

@LoveMySailor1018: My boss employes only me & then a seasonal co-worker & we are definately employees & pay taxes. We’re a very small business. It could be that over 4 people they have to pay something else too… not sure what though.

If you made over $1600 in a year for babysitting/ nanny-ing, what SHOULD have happened is they should have withheld a little from each check (around $7), & then they paid another $7 so the gov got $14 each time. Not that exact amount, but just used it as an example.

Its called a “nanny tax” but it applies to any household employee. Whether you were called a babysitter or a nany, a butler, etc… if you made over $1600 than you have to pay taxes.

Idk if they’re trying to trick you. They may not really know about all this that you’re now going through, just that they had to pay taxes on you also. Or maybe they used you as a tax write off & have no idea what this does to their former employees. I had no idea that you had to pay employee taxes for a babysitter!

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