I pay my sub $20 for every 3 hours of work. Which is almost $7.00/hour take home pay for her. The way I see it, since I'm paying her under the table, I'm paying the taxes on her income. If she were hired at a daycare center, she'd make between 7.25 and 8.00/hr. Once taxes were taken out, she'd make between 6.00 and 7.00/hour. So I give her about what a person would make on their paycheck after taxes were taken out.

When I was trying to decide what to pay her, I took my daughter's paycheck stub at the time when she was making minimum wage and calculated how much her take home pay was per hour. It was a little over 6.00/hour. Since I want to make it worth my sub's time and mine to have her come to work, I hire her and pay her in blocks of 3 hour shifts.

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