Nanny needs Tax ID #?

[arunmit]

Hi,
Currently our kids are enrolled in a Registered Day care and so we get receipts for the payments we make. This is used to get refund of our pre-tax deferrals that we make every month.
We are planning on hiring a nanny now. She has no Tax ID #. So my guess is even if we do get receipts from her, we cannot use them to claim our deferrals because she has no Tax ID#.
If we ask her to get one- how does if affect her pay? Will she now have to use some of the money that we pay her towards taxes?
How will it impact us? Do we have to contribute extra towards medicare and SS tax etc?
Thanks

 

[areagirlsbestfriend]

As long as she''s a legal US resident alien or US citizen, she should have a tax ID. If she doesn''t, you may be completely out of luck (and participating in illegal behavior). Everyone who pays taxes has a tax ID ... usually their social security number, I believe.

I don''t think you need receipts either, you just need copies of your cancelled checks paid to her, when you file your taxes the following year.

Try IRS.gov for more info ..

 

[Skippy123]

This article should help you http://moneycentral.msn.com/content/Taxes/P82382.asp
Also, if your babysitter has a set schedule, usually in the eyes of the irs your sitter is your employee and you both need to pay taxes. I would talk to the irs and your accountant about it.

 

[arunmit]

I thuought only any person egaged in a business or providing services needs to have a Tax ID...

 

[Girlrocks]

When I did in home day care, I just used my SS#, never had a problem.

 

[movie zombie]

i believe your ss# is your tax id as an individual.

a nanny is in business for him/herself and is providing a service.

several years ago some politicians got in trouble for this very thing: not paying the appropriate taxes for a nanny.

make sure to check everything with the irs before you leap.

movie zombie

 

[cinnamon013]

Check the tax code. If you are using her in your home as a nanny, you''ll likely need to pay social security taxes to the Feds on her behalf. This will ramp up your costs dramatically.

 

[swingirl]

Your SS can be used as your tax ID but anyone can get a Federal tax ID number that is not your SS number. The reason for this is it has gotten way too risky to give out your SS number to everyone you work for especially if you freelance. You just can't trust where your SS number will end up in a year or 10 years from now. It is called an Employer Identification Number, EIN. You can request it online. And your nanny will be responsible for paying taxes.

A nanny will be considered your employee.

 

[whatmeworry]

You should check with your plan adminsitrator. For mine, it says:

"If your provider does not have a SSN or TIN, you must submit a letter indicating that you have attempted to obtain a SSN or TIN from the provider and were unable to do so, as the provider does not have one or will not provide it to you."

 

[arunmit]

Thanks a lot for all yopur replies..
If I do submit that kind of letter- wont the nanny get into trouble?
Will I still be able to get my tax deferrals from my Flex plan?

 

[whatmeworry]

If your nanny doesn''t declare that income, then I suppose he/she could get in trouble.

I think you should still be able to get the tax deferrals. The info I quoted is from the federal government''s fsa (fsafeds.com), so you would hope the information is correct. Here''s the blurb from the FAQ.

"What information do I need from a dependent care provider?
Eligible childcare providers must provide you with their SSN or TIN. The caregiver must declare your payment as taxable income. If it is a childcare center providing care for more than six non-resident children, the provider must comply with state and local regulations.

If your provider does not have a SSN or TIN, you must submit a letter indicating that you have attempted to obtain a SSN or TIN from the provider and were unable to do so, as the provider does not have one or will not provide it to you."

 

[movie zombie]

if you like the nanny.....and especially if your child/children like the nanny.....why would you do anything that would jeapordize s/he? do it legal and save you, your child/children, and the nanny grief down the road. i know that''s what you''re trying to do by asking questions, but too many people short cut the law on this and its never a happy ending, especially if your nanny is not a US citizen.

movie zombie

ps you really do need to check with a tax accountant or attorney....unless there is a pricescoper here who is one already and is giving advice for free. i''ve found reading the irs info bulletins still leaves me with unanswered questions and i''ve called them many times for clarification....only to have them tell me they also need to look it up. in my last case it had to do with health care flexible spending account.