Originally Posted by TomCopeland:
Not in this situation. A provider who cares for a child in the home of the parent of the child is not self employed. She is the employee of the parent (nanny, or household employee).
He did say that she watches children in her home, not the parent's.
Originally Posted by Logb17:
She is watching our boy at her house, never at ours. She watches a few other kids as well.
She is claiming the IRS took the Social Security/Medicare tax we were supposed to pay out of her return.
I guess ill just have to tell her she did her taxes wrong, and we are not going to pay for her mistake.
She needs to amend her return immediately. How on earth could she claim you as her employer without a EIN/TIN and a W-2?
We ARE taxed on our income, we pay self employment tax.
Direct her to Tom's blog, or here. I would just tell her politely that she is running a daycare (hopefully not illegal) and is considered an independent contractor for tax purposes. Nannies are employees.