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The kids were with me at the office today.  It's tax season. I'm a tax attorney.  I can't be away too much, nanny or no nanny.

Yep, there's still no word on the nanny front.

It's awfully difficult finding a nanny.  There are so many things that have to fall into place:  scheduling, geography, personality, comfort level and finances.  Yes, finances matter.

It's not all about the money - and you should never be made to feel that way.  I don't appreciate those nanny services that make you feel like if you're not willing to mortgage your life for your children, you're not a good mom.  Nothing could be further from the truth.  I agree that quality child care doesn't come cheap - but it doesn't have to break the bank either.

In my case, it's not even the hourly rate that makes the difference.  It's the classification of a nanny or babysitter as a household worker.  You see, the IRS requires you to treat certain kinds of workers, and home child care workers largely fall into this category, as household employees.  Employees, not independent contractors.  That means that you have to pay your employee in a legitimate manner (not "under the table", no matter how many times they ask!).  You have to report these payments to the IRS.  Most importantly, you are responsible for payroll taxes.

It's tough to be above board with respect to hiring a child care worker.  We all want so desperately to get the right person and when you get the right person, you don't want to risk scaring him or her away.  And sometimes the spectre of taxes and reporting requirements may do that.  But this is the thing:  the one quality you should want in someone who is going to take care of your children is honesty.  Not paying your taxes is cheating.  What kind of lesson is that for your children?

So, when you're looking, remember to mention that you intend to pay your employee fairly, and also honestly.  Make it clear that you will be withholding the proper amount of taxes and making reports to IRS.  This also means, necessarily, that the employee must be able to work legitimately (meaning eligible for employment with respect to age and resident status). 

It can sound a bit overwhelming.  It's really not.  Once everything's in place, pay day under these circumstances will be just like every other pay day - only you can rest at night knowing that you're doing the right thing and you're getting that tax deduction for your efforts.  If you pay "under the table", you might feel like you're saving a few dollars here and there but you lose big at tax time since you can't claim a deduction for child care expenses. 

At the end of the day, it's a business decision for the most important business in the world:  your family.