Visit our Resource Center for a wealth of information for both Families and Nannies.“Levy has taken care of our son since he was 4 weeks old (he is now 2 yrs. old). She will be available for employment starting December 2010 when we move to a different town. We have never stopped thanking our good fortune to have found her and had her take such an active part in our son's development. She is a loving, happy, sweet, thoughtful, punctual, hardworking, and trustworthy person. She is not just his guardian who protects him while we are gone, she is his energetic playmate, stimulating teacher, gourmet chef, and best friend. I honestly believe it is under her influence that my son is such a happy, cheerful child. She understands how to teach a child respect for others and is able to provide discipline in a loving, nurturing manner. She has never called in sick and worked long, hard hours through rain, sleet, or snow cheerfully because she made our child her top priority. Others have commented to me on many occasions how lucky I was to have found her. Anyone who employs Levy and treats her with respect will NOT be disappointed. We will miss her terribly and are very worried we will never find a nanny as dedicated as she is. We hope she will be a part of our family forever. ”
The advice in this book comes from Candi Wingate, President of Nannies4hire.com.
The latest book from Candi offers more valuable advice for nannies and families.
Full-time nannies can expect to receive some benefits along with their standard weekly or hourly nanny pay rates. For both live-in and live-out full-time nannies, benefits can include two weeks of paid vacation per year, paid days off during major holidays and health insurance. Live-in nannies get the additional benefit of room and board, including their own room and sometimes a private bath, as well. Some nannies get use of a car and a cell phone, too. These benefits typically apply to nannies who work 40 hours or more a week. Some nannies can work up to 60 hours a week. In exchange for hours in excess of 40 hours a week, nannies get paid overtime or paid time off to compensate them.
Hiring a nanny involves adhering to employment regulations just like any other workplace situation. In most cases, nannies are classified as employees and not independent contractors. In order for nannies to be independent contractors, they need to provide their own hours, place of business and their own work tools when they work. Employees, on the other hand, have their hours, place of work, work tools and responsibilities set by their employer. Because by nature, a nanny typically works out of a family’s home and works based on the schedule the family requires, it makes it difficult to qualify a nanny as an independent contractor.
Figuring out the tax requirements in your nanny’s pay doesn’t have to be complicated once you break down the amounts by category. If your nanny is an employee, you’ll usually withhold anywhere from 15 percent to 20 percent of her pay in taxes. Here are all the components you need to be concerned about when it comes to nanny taxes.
If your nanny works overtime, you should plan on compensating her for her time. Nannies who work more than 40 hours within a 7-day workweek must get overtime pay, according to the federal government. You should plan on paying overtime pay for nannies at a compensation rate of 1.5 times your nanny’s hourly wage. Overtime pay for nannies can be built into the salaries. For instance, a nanny who works a 50-hour workweek might get a lump wage based on an hourly rate of 40 hours plus 10 hours of overtime pay. A nanny can work as many hours as you and she agree upon. Although nannies who are live-in often get paid less, they do have the right to get pay equal to that of a live-out nanny.
If you’re in the process of setting up your nanny’s paycheck, don’t forget that paying taxes is part of your obligation along with the nanny salary. Nannies must pay Social Security taxes as well as federal income taxes on their nanny salary. As an employer, you’re also obligated by the federal government to pay Social Security taxes on your nanny’s salary. In many states, employers of nannies must also pay the state unemployment taxes, as well.
If you’re having a tough time figuring out how to deal with the set-up, there are services that specialize in handling payroll. Paying taxes for your nanny can be much simpler if you decide to let an outside agency handle the process. One such agency, GTM Household Employment Experts, handles payroll and paying taxes specifically for nannies and their employers.
Nanny wages vary across the country, depends on the amount of experience a nanny has and whether you provide housing for her.
According to the 2012 INA Nanny Salary and Benefits Survey: