Don’t get paid in cash, under the table, or off the books. It only hurts you in the end.
There are several reasons to say no to getting paid in cash, but today we talk about 3 main reasons! Having a paper trail (receipts, invoices, and text messages) will:
- Clear up any disputes.
- Make doing your taxes WAY easier!
- Set you apart as a professional!
Alternative Forms of Payment
There are tons of free online services that get you your money. Paypal & CashApp are two of my favorites.
TIP – Pick one form of payment and be consistent!
This way you can refer back to the transaction history for details. Jump to Reason 2 to find out why this tip is so helpful during tax season!
Reason 1 – Avoid Disputes!
Your first step is to have a contract! I have one HERE that you can fill out with your nanny family to determine when and how much you’ll be getting paid. Then, decide on how you’ll be getting paid and stick to that method! This makes tracking payments and even reimbursements super convenient!
Getting paid in cash is hard to keep track of and even though it might seem easy enough, it almost always leads to a dispute.
You want everything to be in writing so you can easily clear up any potential dispute about whether they paid you back for the movie or that lunch outing you had with the kiddos. This will keep your nanny family relationship stress free.
Reason 2 – Taxes!
Taxes are never a pleasure, but they CAN be easy enough if you spend a little extra time tracking your money.
“Where did it come from? Where did it go? Where did it come from?” – Cotton Eyed Joe
I came up with an essential tax tracker to manage your finances. It makes keeping track of your money simple and streamlined. You can find it in The Complete Nanny Binder.
Imagine how complicated it would be to receive cash here and there from different families at different times. If you’re anything like me, you’ll accidentally leave it in your back pocket and find it later in the washing machine. Your money will be clean but your life will be messy.
Reason 3 – Professionalism!
Some have fallen into the trap of just accepting cash for their childcare services. This is especially true when they work part time. This may have worked out a couple times, but if you want to stand out as a professional in the industry, do yourself a favor and insist on the paperwork.
This will really set you apart from the standard babysitter, and protect you from any misunderstanding or confrontation about money. If you choose to be self employed, letting your family know you can take care of the taxes will make you even more hirable!
You can thank me later!