This form will help you determine how many deductions your nanny is taking, which you'll need to know to calculate how much to deduct from her paycheck. At the end of each year, she must fill out a new one, which you must file with the Social Security office by February 28 of the following year. Add your comments to the bottom of this page. She can help you obtain the forms, talk you through the process, or even take over the entire paperwork hassle. All four are experts in nanny taxes and work closely with the International Nanny Association .
Many parents do pay their nanny under the table, largely to skip the hassles just described.
But it's illegal. If the IRS finds out, you may be liable for any unpaid employer taxes in the future, and may even face prosecution. Also, you won't be able to claim any childcare-related expenses on your taxes. It matters to the government. By law, you are required to check whether your nanny is eligible to work in the United States.