Paying a babysitter

[snoopy]

Hi all,

What is recommended for paying a regular babysitter, one who would be working 10 hours a week regularly. Mostly I am wondering do people pay cash for these services? Sitter requested cash (so no taxes). A bizillion years ago, I’m pretty sure my mom paid cash but I wondered if things were more “tight” these days.

Thanks!

 

[made_in_canada]

I etransfer babysitters mostly. Unless I happen to have cash on hand.

 

[clairecloutier]

I etransfer babysitters mostly. Unless I happen to have cash on hand.

We have always paid cash. But we only use babysitters occasionally, for evenings here & there.

 

[Lemonade20]

Yes, most babysitters prefer cash or etransfers. It’s easier too and they don’t worry about taxes

 

[once_upon]

Back when the kids were little, I wrote checks. Now I would probably do an EBT.

If it was a teenager watching for the evening, I would pay cash.

But if it was a regular schedule each week, I would be doing an EBT so I could get my tax election money.

 

[ballettmaus]

The few times I got to babysit before YKW hit, I was paid in cash. But I was babysitting when needed, a few times a month, not weekly.

 

[AxelAnnie]

Cash is ?. And a bonus every so often promotes loyalty.

 

[Aceon6]

Cash or Venmo.

 

[MacMadame]

I'd be careful about paying cash to someone who is regularly watching your kids on a set schedule. That is not a babysitter. That's a nanny. And the IRS expects you to keep track, issue a 1099, etc. Or alternately they may consider the nanny to be an employee and then there are all sorts of taxes and paperwork to pay.

I would talk to someone who is an expert on this to make sure I didn't get in trouble later.

 

[snoopy]

Yeah I researched it further. Its not so much a set schedule but total dollars paid. $2,200 per year is the threshold. If payment to the individual exceeds that, it triggers all the employment tax requirements etc.

 

[Erin]

Yeah I researched it further. Its not so much a set schedule but total dollars paid. $2,200 per year is the threshold. If payment to the individual exceeds that, it triggers all the employment tax requirements etc.

You may already know this since you've looked things up, but there is also a $1,000 per quarter threshold. Given that we are late in the year, there are more potential situations where someone doesn't hit the annual threshold, but does hit the quarterly one, so just something else to keep an eye on.