Most nannies want to be paid in cash for a number of reasons. One of the reasons is that many nannies are not financially sophisticated and cash is just easier to deal with for them. Another reason is that they don’t have to go to a bank to cash a check, which saves them a trip. There is also the question of taxes, which they can “fudge” on if they are paid in cash.

The other reason that many employers prefer to pay nannies in cash is that it is easier for them when it comes to taxes.

But the truth is you should follow the law when paying your nanny. A simple way to do this is to meet with your accountant before you begin your nanny interviewing process, and ask what the best way to legally pay a nanny is.

You will have to tell the accountant how many hours the nanny is working, if she is a live in or live out, and what her salary will be. If he is not familiar with your tax bracket, and you have never met with him before, a phone call will not be adequate to get good answers to your questions. Make a meeting so he can go over your income, your expenses and deductions and your nanny needs, costs and salary paid.