Tax question regarding a nanny position

[needsinsight]

I was recently offered a new position.

The family gave me two options: 1) to pay me gross and I will pay my taxes at the end of the year, or 2) they will withold the taxes themselves and will write me a check for that amount to pay my taxes with. They won't have me sign any tax forms, and this has left me baffled.

Are they trying to get out of paying taxes? I am accustomed to signing the tax forms before I begin a new position. I don't want to be screwed come tax time. Thank you for any insight.

 

[kirby]

Do yourself and them a favor by being paid gross and you file tax yourself. Favor to you because gross amount is under your control - no worries if they will pay or will not pay tax later. Favor to them because keeps them honest on this.

 

[KRHoffmanCo]

Different rules apply depending on how much you are paid. See Publication 926 for more information. I would suggest you contact a competent tax professional.


Kenneth Hoffman, EA
954-591-8290