At that exact moment, you should have called his parents, explained the situation and asked them to come back home all while letting them know you do not want to be put in that position. :). You gotta teach these kids who's in charge!

I would've called the parents.

I'm not surprised the new generation of kids are a bunch of ungrateful, idiotic, spoiled brats.

kids can be dicks

Aww kids say the darndest things... NOT!!

"You know what else you could tell your parents? That I hit you in the no-no place!" BAM

Rip his dick off and make him eat it

I would've called his parents then and there and told them what he said, and left.

I would have immediately phoned the parents and told them what he said and told them that if they did address his behavior then they would need to cancel there plans and find a new baby sitter.

Perhaps I like to live dangerously but, here is how I would have handled the situation: First, I would have ignored the threat and simply invited my little charge to bake cookies with me. It's a rare kind of kid that can refuse the lure of cookies. Disarmed and focused on the treats being formed, I would have started to ask things like what activities the child did with their dad; did they bake cookies like us, play catch, go fishing, etc etc. Again, it's a rare kind of kid that doesn't enjoy spending time with their dad. Once I got them talking and thinking about their dad and all the fun things they do together, that's when I strike; gently of course, because often times these kids just don't know any better. "Anyways little fella, wouldn't you be sad if you couldn't play with your dad any more? That's what happens to adults to touch children in their no-no place - they get sent away for a long time, and they're not allowed near children ever again. How sad would you be if your dad got sent away for a really long time and you never got to do anything with him ever again? Pretty sad I bet. And how mad would you be at the little boy/girl who lied and made the police come to take your dad away? So you see, you mustn't lie about someone touching your no-no place." If you have kids (or grandkids, whatever), whip out some pictures if you got them and start talking about the things you'll never get to do with them ever again, and how sad they'll be if little Timmy/Timmette made their dad disappear. After all that heaviness, make sure you do something fun together to strengthen the bonding so the kid knows you're not going to reject them. Unless they are truly the spawn of Satan (and they do exist), in which case I can agree with the suggestion of immediately terminating the job or, at the very least getting a recording of the blackmail, you'll have just won yourself a little friend and (hopefully) made them a better person in the process. There's no reason to dread babysitting; it's not just a job, it's an adventure!