Jodi-FL Posted May 7, 2008 Share Posted May 7, 2008 My dd has been babysitting for a sweet family that we only know through an acquaintance, and they would like to pay her from their Flex Spending Account. They need her social for that. My dh is really uncomfortable doing it, but doesn't know if he should be. pros/cons? Quote Link to comment Share on other sites More sharing options...
battlemaiden Posted May 7, 2008 Share Posted May 7, 2008 No way. Jo Quote Link to comment Share on other sites More sharing options...
pmegan Posted May 7, 2008 Share Posted May 7, 2008 I've never heard of a babysitter being paid any way but under the table, and I don't think I'd be comfortable handing out her SS#. But I think I'm more careful about that than most people. Quote Link to comment Share on other sites More sharing options...
elegantlion Posted May 7, 2008 Share Posted May 7, 2008 I wouldn't want to do it. It would make me uncomfortable. The other issue would be depending upon how much she makes it would be looked upon as taxable income. I have no experience in this type of matter, but I wouldn't feel comfortable giving it out. Quote Link to comment Share on other sites More sharing options...
j.griff Posted May 7, 2008 Share Posted May 7, 2008 Um, they need to pay her cash. I wouldn't give it out, who the heck goes around giving out the social to strangers? Ick. And who the heck doesn't pay a babysitter cash? Quote Link to comment Share on other sites More sharing options...
sleepy Posted May 7, 2008 Share Posted May 7, 2008 Absolutely not. Quote Link to comment Share on other sites More sharing options...
Pam "SFSOM" in TN Posted May 7, 2008 Share Posted May 7, 2008 My dd has been babysitting for a sweet family that we only know through an acquaintance, and they would like to pay her from their Flex Spending Account. They need her social for that. My dh is really uncomfortable doing it, but doesn't know if he should be. pros/cons? I would. They've no doubt set aside money in their account that they can use for childcare, but can't use it unless they can verify who it went to. It's standard to use SSN's, and I wouldn't have a problem giving it to them. Quote Link to comment Share on other sites More sharing options...
Caroline Posted May 7, 2008 Share Posted May 7, 2008 Is she babysitting for them while they are at work? If so, they are able to pay her with money that is pretax money. I have my sitter's SSN so that I can get reimbursed from my flexible spending account. I do pay her in cash. Quote Link to comment Share on other sites More sharing options...
Melinda in VT Posted May 7, 2008 Share Posted May 7, 2008 Is she babysitting for them while the parents work? Is it for a lot of hours? If they want to claim the money they pay her as a tax deduction, they will need her SS#. And if she's working that much, she should be declaring it as income anyway. Otherwise, I wouldn't give it out. Quote Link to comment Share on other sites More sharing options...
QuirkyKapers Posted May 7, 2008 Share Posted May 7, 2008 After the kind of week I am having, no- I wouldn't give the SS# out. It seems like there should be some other possiblities. Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted May 7, 2008 Share Posted May 7, 2008 There are tax advantages that they will lose without the social security number. However, you should be aware that they will have to report their babysitters' names, addresses and ssns on their federal tax return, and the IRS will match it to your dd's tax return. So your dd will have to plan to report the income. Even if her income is low enough that she pays no income tax, she will be subject to self-employment tax if she earns more than $400. To calculate the s/e tax, take the amount she earns x 92.35% x 15.3%. If your dd incurs any expenses related to babysitting, she will be able to deduct them. Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted May 7, 2008 Share Posted May 7, 2008 And who the heck doesn't pay a babysitter cash? Couples who both work, couples where one works and one goes to school, or single parents who can take a tax credit for their child care expenses. Quote Link to comment Share on other sites More sharing options...
nancypants Posted May 7, 2008 Share Posted May 7, 2008 No, I wouldn't feel comfortable with that. Quote Link to comment Share on other sites More sharing options...
j.griff Posted May 7, 2008 Share Posted May 7, 2008 We are talking about a teen babysitter though, not a day care provider. Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted May 7, 2008 Share Posted May 7, 2008 We are talking about a teen babysitter though, not a day care provider. Taxwise, it makes no difference. Quote Link to comment Share on other sites More sharing options...
Jodi-FL Posted May 7, 2008 Author Share Posted May 7, 2008 and it was for them to go to dinner and a movie. They say they want to hire her as a "regular", about once or twice a month. They paid her cash. Quote Link to comment Share on other sites More sharing options...
summer Posted May 7, 2008 Share Posted May 7, 2008 no way! They have no need for it. Quote Link to comment Share on other sites More sharing options...
summer Posted May 7, 2008 Share Posted May 7, 2008 My undersstandiong is that legally, those flex spending accounts are supposed to be only used for childcare while they are working. You may want to look it up on the IRS.gov website though. Quote Link to comment Share on other sites More sharing options...
sheryl Posted May 7, 2008 Share Posted May 7, 2008 NO WAY! It may be honorable, but why take the chance? NO NO NO Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted May 7, 2008 Share Posted May 7, 2008 My understanding is that legally, those flex spending accounts are supposed to be only used for childcare while they are working. You may want to look it up on the IRS.gov website though. I just looked it up in my plan. It reads "...your opportunity to elect to receive income tax-free reimbursement for some or all of your work-related dependent care expenses..." I just assumed (wrongly) that if they asked for the babysitter's SSN, at least one of them was working while she was babysitting. You might check the instructions to Form 2441, which is the form used to calculate the child care tax credit. I'm almost positive that child care expenses reimbursed under a cafeteria plan or FSA cannot exceed the parameters of the expenses eligible for the child care credit. ETA: If my dd were babysitting for someone while they were working, I would not have a problem giving them her SSN. Risky or not, it's standard practice, and the income is technically taxable income to my dd regardless of her age and whether she reports it or not. Quote Link to comment Share on other sites More sharing options...
j.griff Posted May 7, 2008 Share Posted May 7, 2008 Ah, that makes more sense. I was wondering WTH someone would be getting tax credit for a date night or something similar, :D Quote Link to comment Share on other sites More sharing options...
battlemaiden Posted May 7, 2008 Share Posted May 7, 2008 and it was for them to go to dinner and a movie. They say they want to hire her as a "regular", about once or twice a month. They paid her cash. Well that settles it for me. No SSN. Jo Quote Link to comment Share on other sites More sharing options...
Remudamom Posted May 7, 2008 Share Posted May 7, 2008 I will tell you this, I don't even let my parents have my children's SS number. I'm not kidding. I don't want them out there anywhere. Quote Link to comment Share on other sites More sharing options...
Unicorn. Posted May 7, 2008 Share Posted May 7, 2008 NO way! Unless she is working several hours a day while they are at work, no. nt Quote Link to comment Share on other sites More sharing options...
Sebastian (a lady) Posted May 7, 2008 Share Posted May 7, 2008 Not without discussing it in more detail and perhaps forming a contract. I am very hesitant over who gets SSN numbers. There is also not only issue of your dd having taxable income but also of the other family crossing the line to being considered as her employer (which would require their getting an employer id number, paying the employer share of workman's comp and SSA contributions and perhaps doing SSA withholdings for the employee contribution). It can get murky very quickly. I would be concerned about a situation where someone wanted to take advantage of using a certain type of account but wasn't willing to take on all the responsibility of the employer/employee relationship. It's not something I would say yes to right away. Quote Link to comment Share on other sites More sharing options...
Hillary in KS Posted May 8, 2008 Share Posted May 8, 2008 No. Quote Link to comment Share on other sites More sharing options...
Hillary in KS Posted May 8, 2008 Share Posted May 8, 2008 Wait. I might if the couple gave me theirs as well...... Quote Link to comment Share on other sites More sharing options...
OhM Posted May 8, 2008 Share Posted May 8, 2008 I'm not sure of details, but could she apply for a TIN (tax identification number) that they could use? (I know that's what I used to report my daughter's daycare for tax credit.) According to this information, it's for individuals who aren't eligible for SSN's. It doesn't address whether individuals with a SSN can use them. Might be looking into - it would be mutually beneficial for them to pay her out of their pre-tax money! http://www.irs.gov/individuals/article/0,,id=96287,00.html#what Quote Link to comment Share on other sites More sharing options...
Guest Shanna Posted May 8, 2008 Share Posted May 8, 2008 They legally cannot pay her from their flex spending unless she is babysitting while they are working. I would not give it out. Quote Link to comment Share on other sites More sharing options...
angela in ohio Posted May 8, 2008 Share Posted May 8, 2008 Is she babysitting for them while the parents work? Is it for a lot of hours? If they want to claim the money they pay her as a tax deduction, they will need her SS#. And if she's working that much, she should be declaring it as income anyway. Otherwise, I wouldn't give it out. :iagree: Quote Link to comment Share on other sites More sharing options...
kalanamak Posted May 8, 2008 Share Posted May 8, 2008 and the spouse has to be working, not going to school. I tried it when hubby was redoing the flooded basement....no, had to be paid job, not sweat equity. They would not have covered dinner and a movie. Sounds fishy. Quote Link to comment Share on other sites More sharing options...
Tracey in TX Posted May 8, 2008 Share Posted May 8, 2008 Nononono way! This little detail should've been discussed prior to the babysitting arrangement. NO how, no way. Quote Link to comment Share on other sites More sharing options...
cornerstonemom Posted May 8, 2008 Share Posted May 8, 2008 NO, step away from the ss#! Quote Link to comment Share on other sites More sharing options...
5kidsforME Posted May 8, 2008 Share Posted May 8, 2008 My dd has been babysitting for a sweet family that we only know through an acquaintance, and they would like to pay her from their Flex Spending Account. They need her social for that. My dh is really uncomfortable doing it, but doesn't know if he should be. pros/cons? Absolutely not. Nope. Nada. Never. Quote Link to comment Share on other sites More sharing options...
EKS Posted May 8, 2008 Share Posted May 8, 2008 Absolutely not. Quote Link to comment Share on other sites More sharing options...
Pam "SFSOM" in TN Posted May 8, 2008 Share Posted May 8, 2008 and it was for them to go to dinner and a movie. They say they want to hire her as a "regular", about once or twice a month. They paid her cash. Then I withdraw what I said before. No. Quote Link to comment Share on other sites More sharing options...
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