Nannies--the Downfall of Powerful Women

Ambitious women in America should learn from Michelle Obama.  Anyone who aspires to holding a position of governmental power should use her mother’s free services for childcare.  Because hiring household help can easily sink you.

Appointed to White House Chief Performance officer, Nancy Killifer withdrew this week because she had a $1,000 tax problem in 2005.  She neglected to pay about $268. in unemployment tax for a nanny. 

Tom Daschle’s confirmation was sunk once it was revealed that he earned $5 million in his post-Senate career in what looked like lobbying—and owed some $128,000 in back taxes for the perk of a chauffeur driven limousine.   Timothy Geithner made a $34,000 boo boo, but was allowed to take his cabinet post—overseeing the Treasury Department and its own IRS.

Note that Killifer’s mistake is smaller than Daschle’s—about 1/500th as small.  And $268 also compares pretty pitably to Timothy Giethner’s tax deficit.

It should be noted that Ms. Killefer complied with most of the necessary nanny paperwork;  she appears to have correctly calculated the several other taxes and withholdings required.

And there are many taxes that go along with paying a helper; you must deduct social security, medicare, unemployment and worker’s compensation payments in some states. Some of this you must do quarterly.  And then any nanny-employer must also file schedule H at tax time.

Doing nanny payroll is clearly another onerous jobs.  If they can make quick pot roasts to help working mothers, why not simplify the tax burden?  

If only we could all have our mothers help….It would be so much easier and cheaper.  But of course, our mothers would have to had to earn enough money to retire, or barring that live with their children for room and board -- or an unpaid domestic servant or second lower status wife.