{"id":11063,"date":"2016-12-21T11:33:22","date_gmt":"2016-12-21T16:33:22","guid":{"rendered":"https:\/\/gtm.com\/household\/?p=11063"},"modified":"2020-05-01T14:54:29","modified_gmt":"2020-05-01T18:54:29","slug":"not-paying-nanny-taxes-derail-career-opportunity","status":"publish","type":"post","link":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/","title":{"rendered":"Not Paying Nanny Taxes Could Derail Your Career Opportunity"},"content":{"rendered":"

\"derail<\/p>\n

Career Opportunity of a Lifetime<\/h2>\n

Update #2: Another nominee has run into trouble with his household employment practices. Andrew Pudzer, President Trump’s choice to lead the Labor Department, acknowledged he employed an undocumented immigrant to work in his home. Pudzer claimed he ended the employment of his housekeeper once he found out she was not legally permitted to work in the U.S. He also says he paid all back taxes to the IRS and the state of California. Pudzer has yet to have his confirmation hearing.<\/em><\/p>\n

Update: Less than a month after this post it has been revealed that President-elect Trump\u2019s choice for White House budget director failed to pay more than $15,000 in household payroll taxes<\/a>. U.S. Representative Mick Mulvaney (R-S.C.)’s nomination to the post is now in jeopardy. Mulvaney says he settled his federal tax bill but still needs to pay state taxes, as well as penalties and interest.<\/em><\/p>\n

It seems like the career opportunity of a lifetime. The incoming president\u2019s transition team is considering you for a position in his cabinet or a senior-level appointment in a government agency or even an ambassadorship.<\/p>\n

Or\u2026it\u2019s the chance you\u2019ve waited for your entire career. You\u2019re being considered for partner in your firm or a C-level position in a major corporation.<\/p>\n

In either scenario, you\u2019ve worked hard. You\u2019ve sacrificed. Your professional resume is impeccable. You\u2019ve cleared the background checks. You\u2019re cruising through the vetting process.<\/p>\n

Then come the questions that make your palms sweat, create a lump in your throat, and knock you off stride.<\/p>\n

Have you ever hired a nanny, in-home caregiver, housekeeper or any other individual to work in your home? If so, did you pay the proper taxes?<\/p>\n

For jobs that require a government security clearance, you will be required to fill out SF-86 (Questionnaire for National Security Positions). That form asks, “In the past seven (7) years have you failed to pay Federal, state, or other taxes when required by law or ordinance?”<\/p>\n

As it turns out, you hired a nanny to look after your young children as you and your spouse both work. You pay the caregiver under the table because it\u2019s easier and who has time to manage payroll and taxes? The nanny doesn\u2019t mind. There\u2019s more money is her paycheck. Plus, how was anyone going to find out?<\/p>\n

This situation likely plays out more often than you think considering just an estimated 10 percent of household employers pay their workers legally.<\/p>\n

From “Nannygate” to today<\/h2>\n

Robert Rizzi, a partner and chair of the tax group at Steptoe & Johnson LLP, guides political appointees through the vetting process. He recently told Bloomberg BNA that he has had clients under consideration for nomination by the Obama administration who were immediately disqualified for failure to pay their nanny taxes.<\/p>\n

Going back a few years, Zo\u00eb Baird was the first high-profile individual to fall victim to this mistake. She was President Clinton\u2019s first choice for Attorney General. However, Baird withdrew her nomination when it came to light that she and her husband had hired illegal immigrants to serve as chauffeur and nanny. They also failed to pay the proper employment taxes on the workers.<\/p>\n

The controversy became known as \u201cNannygate\u201d and led to changes in the way household employers report their taxes. Congress reacted by passing a law that raised the minimum annual pay that triggers tax payments and gave birth to Schedule H<\/a>. This form, which reports household employment taxes, is filed with a domestic employer\u2019s personal tax return.<\/p>\n

Now nanny taxes are one of the \u201cheavily scrutinized\u201d issues<\/a> that nominees can expect to confront during the vetting process.<\/p>\n

The past eight years have seen increased scrutiny of tax returns according to Rizzi. He calls it a \u201chot-button tax issue\u201d for nominees. Problems with Timothy Geithner arose during his vetting process for the Treasury secretary position under President Obama. He hadn\u2019t paid Social Security and Medicare taxes on his domestic workers for several years. Geithner subsequently paid his back taxes and filed amended returns. He was confirmed shortly after President Obama took office. Former Sen. Tom Daschle wasn\u2019t so fortunate. He was forced to withdraw his nomination for Health and Human Services secretary because of several tax problems, including failure to pay income taxes on his driver.<\/p>\n

How to save your career opportunity<\/h2>\n

What can you do if you\u2019ve been paying your domestic worker off the books?<\/p>\n

First, take care of your back tax obligations as soon as possible. Now is a great time to deal with this especially if you just hired a household employee in the past year. GTM Payroll Services offers back tax work at reasonable rates. We can help you correct issues and become compliant moving forward.<\/p>\n

Or maybe you\u2019re unsure if you\u2019re doing it right and would rather not find out at an inopportune time. Call us at (800) 929-9213 for a free, no-obligation consultation and we\u2019ll review your specific situation and help you determine your compliance and next steps.<\/p>\n

GTM Payroll Services has specialized in household payroll for more than 25 years. We\u2019re trusted by Fortune 500 companies to manage payroll and file employer taxes for their executives and clients.<\/p>\n

Your career opportunity deserves it.<\/p>\n","protected":false},"excerpt":{"rendered":"

You\u2019ve worked hard. You\u2019ve sacrificed. Your professional resume is impeccable. You\u2019ve cleared the background checks. You\u2019re cruising through the vetting process for your new, high-level job. Then come the questions that make your palms sweat, create a lump in your throat and knock you off stride.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[75,80],"tags":[111,110],"class_list":["post-11063","post","type-post","status-publish","format-standard","hentry","category-household-payroll-taxes","category-tax-wage-laws","tag-government-jobs","tag-nannygate"],"yoast_head":"\nRuining a Your Career by Paying the Nanny "Off the Books"<\/title>\n<meta name=\"description\" content=\"A career opportunity presents itself. There's a vetting process. What can you do if you\u2019ve been paying your domestic worker off the books?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ruining a Your Career by Paying the Nanny "Off the Books"\" \/>\n<meta property=\"og:description\" content=\"A career opportunity presents itself. There's a vetting process. What can you do if you\u2019ve been paying your domestic worker off the books?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/\" \/>\n<meta property=\"og:site_name\" content=\"GTM Household\" \/>\n<meta property=\"article:published_time\" content=\"2016-12-21T16:33:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-01T18:54:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/gtm.com\/household\/wp-content\/uploads\/your-career-opportunity.jpg\" \/>\n<meta name=\"author\" content=\"Trevor Sparks\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Trevor Sparks\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/\"},\"author\":{\"name\":\"Trevor Sparks\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#\\\/schema\\\/person\\\/d573c6d17254ed345cc6b69ea4dfbff0\"},\"headline\":\"Not Paying Nanny Taxes Could Derail Your Career Opportunity\",\"datePublished\":\"2016-12-21T16:33:22+00:00\",\"dateModified\":\"2020-05-01T18:54:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/\"},\"wordCount\":894,\"publisher\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/gtm.com\\\/household\\\/wp-content\\\/uploads\\\/your-career-opportunity.jpg\",\"keywords\":[\"government jobs\",\"nannygate\"],\"articleSection\":[\"Household Payroll & Taxes\",\"Tax & Wage Laws\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/\",\"url\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/\",\"name\":\"Ruining a Your Career by Paying the Nanny \\\"Off the Books\\\"\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/gtm.com\\\/household\\\/wp-content\\\/uploads\\\/your-career-opportunity.jpg\",\"datePublished\":\"2016-12-21T16:33:22+00:00\",\"dateModified\":\"2020-05-01T18:54:29+00:00\",\"description\":\"A career opportunity presents itself. There's a vetting process. What can you do if you\u2019ve been paying your domestic worker off the books?\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#primaryimage\",\"url\":\"https:\\\/\\\/gtm.com\\\/household\\\/wp-content\\\/uploads\\\/your-career-opportunity.jpg\",\"contentUrl\":\"https:\\\/\\\/gtm.com\\\/household\\\/wp-content\\\/uploads\\\/your-career-opportunity.jpg\",\"width\":1024,\"height\":654,\"caption\":\"derail your career opportunity\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/not-paying-nanny-taxes-derail-career-opportunity\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/gtm.com\\\/household\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Not Paying Nanny Taxes Could Derail Your Career Opportunity\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#website\",\"url\":\"https:\\\/\\\/gtm.com\\\/household\\\/\",\"name\":\"GTM Household\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/gtm.com\\\/household\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#organization\",\"name\":\"GTM Payroll Services\",\"url\":\"https:\\\/\\\/gtm.com\\\/household\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/gtm.com\\\/household\\\/wp-content\\\/uploads\\\/gtm-logo-2.png\",\"contentUrl\":\"https:\\\/\\\/gtm.com\\\/household\\\/wp-content\\\/uploads\\\/gtm-logo-2.png\",\"width\":193,\"height\":92,\"caption\":\"GTM Payroll Services\"},\"image\":{\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/gtm.com\\\/household\\\/#\\\/schema\\\/person\\\/d573c6d17254ed345cc6b69ea4dfbff0\",\"name\":\"Trevor Sparks\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d11d092ace23bcb8c5149eadd8b49d154e7a8114ca009bfe6cf574517bbf241a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d11d092ace23bcb8c5149eadd8b49d154e7a8114ca009bfe6cf574517bbf241a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/d11d092ace23bcb8c5149eadd8b49d154e7a8114ca009bfe6cf574517bbf241a?s=96&d=mm&r=g\",\"caption\":\"Trevor Sparks\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ruining a Your Career by Paying the Nanny \"Off the Books\"","description":"A career opportunity presents itself. There's a vetting process. What can you do if you\u2019ve been paying your domestic worker off the books?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/","og_locale":"en_US","og_type":"article","og_title":"Ruining a Your Career by Paying the Nanny \"Off the Books\"","og_description":"A career opportunity presents itself. There's a vetting process. What can you do if you\u2019ve been paying your domestic worker off the books?","og_url":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/","og_site_name":"GTM Household","article_published_time":"2016-12-21T16:33:22+00:00","article_modified_time":"2020-05-01T18:54:29+00:00","og_image":[{"url":"https:\/\/gtm.com\/household\/wp-content\/uploads\/your-career-opportunity.jpg","type":"","width":"","height":""}],"author":"Trevor Sparks","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Trevor Sparks","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#article","isPartOf":{"@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/"},"author":{"name":"Trevor Sparks","@id":"https:\/\/gtm.com\/household\/#\/schema\/person\/d573c6d17254ed345cc6b69ea4dfbff0"},"headline":"Not Paying Nanny Taxes Could Derail Your Career Opportunity","datePublished":"2016-12-21T16:33:22+00:00","dateModified":"2020-05-01T18:54:29+00:00","mainEntityOfPage":{"@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/"},"wordCount":894,"publisher":{"@id":"https:\/\/gtm.com\/household\/#organization"},"image":{"@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#primaryimage"},"thumbnailUrl":"https:\/\/gtm.com\/household\/wp-content\/uploads\/your-career-opportunity.jpg","keywords":["government jobs","nannygate"],"articleSection":["Household Payroll & Taxes","Tax & Wage Laws"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/","url":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/","name":"Ruining a Your Career by Paying the Nanny \"Off the Books\"","isPartOf":{"@id":"https:\/\/gtm.com\/household\/#website"},"primaryImageOfPage":{"@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#primaryimage"},"image":{"@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#primaryimage"},"thumbnailUrl":"https:\/\/gtm.com\/household\/wp-content\/uploads\/your-career-opportunity.jpg","datePublished":"2016-12-21T16:33:22+00:00","dateModified":"2020-05-01T18:54:29+00:00","description":"A career opportunity presents itself. There's a vetting process. What can you do if you\u2019ve been paying your domestic worker off the books?","breadcrumb":{"@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#primaryimage","url":"https:\/\/gtm.com\/household\/wp-content\/uploads\/your-career-opportunity.jpg","contentUrl":"https:\/\/gtm.com\/household\/wp-content\/uploads\/your-career-opportunity.jpg","width":1024,"height":654,"caption":"derail your career opportunity"},{"@type":"BreadcrumbList","@id":"https:\/\/gtm.com\/household\/not-paying-nanny-taxes-derail-career-opportunity\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/gtm.com\/household\/"},{"@type":"ListItem","position":2,"name":"Not Paying Nanny Taxes Could Derail Your Career Opportunity"}]},{"@type":"WebSite","@id":"https:\/\/gtm.com\/household\/#website","url":"https:\/\/gtm.com\/household\/","name":"GTM Household","description":"","publisher":{"@id":"https:\/\/gtm.com\/household\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/gtm.com\/household\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/gtm.com\/household\/#organization","name":"GTM Payroll Services","url":"https:\/\/gtm.com\/household\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/gtm.com\/household\/#\/schema\/logo\/image\/","url":"https:\/\/gtm.com\/household\/wp-content\/uploads\/gtm-logo-2.png","contentUrl":"https:\/\/gtm.com\/household\/wp-content\/uploads\/gtm-logo-2.png","width":193,"height":92,"caption":"GTM Payroll Services"},"image":{"@id":"https:\/\/gtm.com\/household\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/gtm.com\/household\/#\/schema\/person\/d573c6d17254ed345cc6b69ea4dfbff0","name":"Trevor Sparks","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/d11d092ace23bcb8c5149eadd8b49d154e7a8114ca009bfe6cf574517bbf241a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d11d092ace23bcb8c5149eadd8b49d154e7a8114ca009bfe6cf574517bbf241a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d11d092ace23bcb8c5149eadd8b49d154e7a8114ca009bfe6cf574517bbf241a?s=96&d=mm&r=g","caption":"Trevor Sparks"}}]}},"_links":{"self":[{"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/posts\/11063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/comments?post=11063"}],"version-history":[{"count":5,"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/posts\/11063\/revisions"}],"predecessor-version":[{"id":23169,"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/posts\/11063\/revisions\/23169"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/media?parent=11063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/categories?post=11063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/household\/wp-json\/wp\/v2\/tags?post=11063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}