Nanny Taxes and FBI Background Checks Forum

[Anonymous User]

My wife and I have recently had a baby, and are in the process of hiring a nanny. We've discovered that many (most?) nannies prefer to be paid off-the-books. From asking around, this seems reasonably common, and doesn't carry with it much risk from the IRS.

The question is whether this will present any issues if I later apply for a job with the federal government. I am in a practice area where many associates eventually spend 5-10 years working for the government, which carries with it an FBI background check, complete with interviews of references, etc...

Does anyone have any idea as to whether paying a nanny off the books is going to be something that they'll catch, or care about if they do catch?

[lawalum]

Google "Zoe Baird".

I paid our nannies on the books - but I grossed up and paid their taxes. But I agree - most nannies prefer to be off the books. Not sure if a FBI background check would look at nanny pay.

[albanach]

My wife and I have recently had a baby, and are in the process of hiring a nanny. We've discovered that many (most?) nannies prefer to be paid off-the-books. From asking around, this seems reasonably common, and doesn't carry with it much risk from the IRS.

The question is whether this will present any issues if I later apply for a job with the federal government. I am in a practice area where many associates eventually spend 5-10 years working for the government, which carries with it an FBI background check, complete with interviews of references, etc...

Does anyone have any idea as to whether paying a nanny off the books is going to be something that they'll catch, or care about if they do catch?

Check your state's requirements for worker's comp cover for a nanny. If your nanny is injured while working for you, you could be making payments for the rest of their life. And even if you don't need cover, you might want to double check your liability insurance.

[Taco]

Have you considered hiring an au pair?

[Anonymous User]

Google "Zoe Baird".

I paid our nannies on the books - but I grossed up and paid their taxes. But I agree - most nannies prefer to be off the books. Not sure if a FBI background check would look at nanny pay.

OP here. Obviously sympathetic to the Nannygate issue, but I'm not smart/ambitious/successful enough to be put through Senate confirmation hearings here. Just trying to make sure I can land a DOJ job. Seems a bit different?

[Anonymous User]

Have you considered hiring an au pair?

Don't have room for a live-in.

[lawalum]

Google "Zoe Baird".

I paid our nannies on the books - but I grossed up and paid their taxes. But I agree - most nannies prefer to be off the books. Not sure if a FBI background check would look at nanny pay.

OP here. Obviously sympathetic to the Nannygate issue, but I'm not smart/ambitious/successful enough to be put through Senate confirmation hearings here. Just trying to make sure I can land a DOJ job. Seems a bit different?

Maybe not. My guess (and it is only a guess) is that whether or not you paid nanny taxes isn't likely to show up on a background check, but it is the kind of thing the DOJ would care about if it did - even if you aren't gunning for attorney general. When faced with this question years ago, I dealt with it by grossing up. Our nannies were happy with this arrangement - but probably many still prefer to be completely off the books.

[Anonymous User]

I have heard horror stories of nannies reporting that they literally weren’t paid in order to screw over their employers after being fired. If you’re paying them off the books, you really do not have much defense against that kind of complaint. That is a potentially criminal issue & your defense will be that you were just trying to evade taxes...not a good look for a barred attorney who can’t claim ignorance of the law OR an inability to afford childcare.

It really is much riskier for you than it is for the nanny, and you probably make enough to pay on the books. So just do that.

[nleefer]

Google "Zoe Baird".

I paid our nannies on the books - but I grossed up and paid their taxes. But I agree - most nannies prefer to be off the books. Not sure if a FBI background check would look at nanny pay.

OP here. Obviously sympathetic to the Nannygate issue, but I'm not smart/ambitious/successful enough to be put through Senate confirmation hearings here. Just trying to make sure I can land a DOJ job. Seems a bit different?

Maybe not. My guess (and it is only a guess) is that whether or not you paid nanny taxes isn't likely to show up on a background check, but it is the kind of thing the DOJ would care about if it did - even if you aren't gunning for attorney general. When faced with this question years ago, I dealt with it by grossing up. Our nannies were happy with this arrangement - but probably many still prefer to be completely off the books.

The background check form you fill out when starting most government jobs specifically asks about past failure to pay taxes. Lying on this form is generally considered a bad idea.