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Should I pay them under the table or file employment paperwork?

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Somebody has to pay employment taxes and withhold income taxes. You can do that as an employer, or the caregiver can handle it as an independent contractor (with you supplying a form -- I think it is the 1099) stating the amounts paid. Either approach is legitimate.

Paying "under the table" implies that neither of these approaches is taken. That is cheating on taxes. That might be cheaper (if you don't get caught) but it is illegal. Were you intending to ask if you should break the law? Or did you have some other understanding of the options in mind?
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