A babysitter paid cash in hand, off the books, rarely saves more than a few tens of kronor an hour compared with a declared one after the RUT deduction (RUT is the Swedish tax deduction of 50 percent for household services, taken off the invoice directly), and leaves you without liability insurance, without background checks and without anyone to call when she does not turn up. If you pay more than 10,000 kr a year to the same person without declaring it, you are breaking the tax rules, not just her. Cash also gives no RUT deduction, because the payment has to be electronic.
A family in Bromma pays a student in cash for two afternoons a week. It started as one evening a month, became a regular arrangement, and now it is October and nobody has added up what the total has come to. That is how it usually looks. Few families decide to have a babysitter off the books, it just ends up that way. Here is what it actually means, what it costs to do it properly, and why the difference is smaller than you think.
What is allowed and what is not
The rules are well known and simple. If you pay a private individual less than 10,000 kr in total during a year, you do not need to pay employer contributions or deduct tax, but the recipient must declare the income on their tax return. Above 10,000 kr you are an employer: employer contributions of about 31.42 percent, tax deductions and an employer's declaration. Off the books means that neither of you does any of that. It is a tax offence for the person earning the money, and a responsibility that also lands on you as the one paying it out above the threshold.
Cash is not illegal in itself. But the RUT deduction requires a traceable electronic payment, so anyone who pays in cash gets no deduction. That is where the saving disappears.
The sum few people actually do
| Cash-in-hand babysitter | Declared babysitter through a company | |
|---|---|---|
| Price per hour | Varies, often not far below the declared price after RUT | From 165 kr after RUT, 199 kr for one-off bookings |
| RUT deduction | No, cash payment gives no deduction | Yes, 50 percent, taken off the invoice |
| Background checks | None, unless you do them yourself | Interview, criminal record extract, paediatric CPR, references |
| Insurance | None | Liability insurance during working hours |
| Cover when she is ill | None | Another nanny when possible |
| If something happens | You are on your own | A company to call, a record of who was there |
| For the babysitter | No pension, sick pay or unemployment insurance | Salary, insurance, a reference |
The big flaw in the reasoning about cash-in-hand babysitters is comparing the cash price with the declared price before RUT. After the deduction, the labour cost is halved. A declared babysitter at 199 kr an hour for a one-off booking is not twice as expensive as a cash one at 150, she is fifty kronor more expensive, and for that fifty kronor you get background checks, insurance and someone to call. With a regular arrangement the price drops further. Work out your hours on the prices page before you decide.
What you risk if something happens
- An accident involving the child. No liability insurance. You have to judge for yourselves whether the babysitter did something wrong, and you have nobody to turn to.
- Damage in the home. She drops the laptop, burns a saucepan, locks herself out. Your home insurance may have views on who was there and why.
- She injures herself at your home. As the de facto employer you can be held liable, with no insurance covering a workplace injury.
- She stops turning up. No contract, no notice period, no cover. One Tuesday you are left standing there.
- Skatteverket (the Swedish Tax Agency). Payments above the threshold that are not declared can lead to tax surcharges and, in worse cases, prosecution. The risk is not great for a single evening, but it grows with every term.
- No references. The day you want a new babysitter there is nothing on paper about who has been looking after your children.
What the babysitter loses
It is often forgotten that the person who loses most from undeclared work is the one doing it. A nineteen-year-old who works for you off the books for two years has no sick pay if she falls ill, no income on which to base parental benefit, no pension for those years, and no reference to show when she applies for a job at a förskola (preschool). Serious babysitters know this, and they want to be paid properly. It is a pretty good sign of a person you want in your home: that she says no to cash.
How to do it properly, simply
- Use a company registered for F-tax. Then everything is included: contributions, insurance, RUT on the invoice. It is the simplest way and the one that asks least of you.
- Or employ her yourself according to the rules. Simplified employer's declaration, tax deductions, employer contributions, a contract. We describe how in our guide to Employing a nanny yourself.
- Always pay electronically. Swish, card or invoice. It is a requirement for RUT and it gives you a record.
- Stay under 10,000 kr per year per person if you want to avoid employer responsibility, and ask the babysitter to declare her income.
What happens at the first meeting
Many families who come to us have had a cash arrangement before and are a little embarrassed about it. You do not need to be. What we do is work out your hours, show what it costs after RUT, and it often lands close to what you were paying before. The nanny comes to your home, meets the children, and you get an exact price before you decide anything. No start-up or monthly fees, no lock-in period.
How we do it with our families
Nike started with a family in Sundbyberg who had previously had an acquaintance babysitting for cash. In the first week the seven-year-old asked whether Nike would also get money in an envelope. Mum told us afterwards and laughed, but it had made her think: the child had learned that this was how it was done. Now Nike comes on Mondays and Thursdays, the invoice arrives once a month with the RUT deduction already taken off, and when Nike was ill in March, Sanna, who had met the children once before, could take the Thursday. It was that Thursday mum said she understood the difference.
Would you like a nanny who comes on the same days every week and whom the children know? Book a free first meeting with the nanny in your home, and we will work out a quote for your hours.
Read more: Employing a nanny yourself · Insurance when you have a nanny · RUT deduction for nannies and babysitters · Prices
Frequently asked questions
Is it illegal to pay a babysitter cash in hand?
Yes, if the amount passes the thresholds at which tax and employer contributions are due and nobody declares the income. Under 10,000 kr a year to a private individual, it is the recipient who must declare it. Above that, you are the employer and responsible for the contributions. Cash payment in itself is not illegal, but it gives no RUT deduction.
How much do you save with a cash-in-hand babysitter?
Less than most people think. A declared babysitter through a company costs from 165 kr an hour with us after the RUT deduction, one-off bookings 199 kr. A cash-in-hand babysitter often charges a price close to that, and you are left without insurance, background checks and cover. Over a term, the difference is rarely worth the risk.
What happens if something goes wrong with a cash-in-hand babysitter?
You are on your own. No liability insurance if she causes damage, no company to turn to, no record of who was in your home. If she injures herself in your home she can turn to you as the de facto employer. That is the real cost.
What does the babysitter lose by working off the books?
Sick pay, pension, unemployment insurance, parental benefit based on income, and a reference to show the next employer. A young person who works off the books for a year has nothing on paper when she applies for her next job. That is why serious babysitters want to be paid properly.
Can we make a cash-in-hand babysitter legitimate after the fact?
You can start doing it properly from today: employ her according to the rules or go through a company. Earlier payments may need to be corrected, and there we recommend asking Skatteverket directly rather than guessing.