Are you considering hiring a nanny for your child? Do you wonder how much does a nanny cost? It is essential to create a fair compensation package for your new nanny. We recommend that all families use a mutually agreed upon employment agreement with their nanny. It is important to create a work agreement to ensure that the expectations are clear and agreed upon by both parties.
Upon signing with Boston Baby Nurse & Nanny you will receive a Domestic Worker Employment Agreement to use with your chosen nanny. This work agreement should be updated on an annual basis if circumstances surrounding your nanny’s employment change.
Nanny Compensation
Most nannies get paid approximately $20-30 per hour. If you are hiring a Nanny Educator, the cost will be higher perhaps $40-50 per hour since this nanny will also provide academic instruction for your child(ren). Years of experience, education/training, and number of children are important factors to consider when negotiating a fair rate. Additional job responsibilities such as housework, grocery shopping, and meal preparation should also be considered when determining your nanny’s compensation.
Payments and Taxes
Many families find that working with a payroll company simplifies this process, but this is not necessary. Our agency recommends HomeWork Solutions but there are many others.
HomeWork Solutions specializes in providing household employers and their tax preparers real solutions for nanny tax compliance. They will handle the entire setup and ongoing management of your tax accounts for you. They support clients in all 50 states and manage all Federal, State, and Local Tax requirements.
If you choose not to work with a payroll agency, we recommend that you talk with a tax accountant to ensure that you are following all state and federal tax laws.
It is also important to note that many states require overtime pay for over 40 hours per week. Massachusetts law states that “employers must pay overtime to workers who work more than 40 hours in any week. Overtime pay is at least 1.5x the regular rate of pay for each hour over 40 hours.”
Sick/Vacation Time (Paid or Unpaid)
In order to foster a positive employer/employee relationship many families choose to provide their nannies with vacation and sick time. This decision is entirely up to you. Most families allow two weeks of paid time off to their nanny and federal holidays. Some states require employers to pay employees time and a half for some federal holidays. Be sure to check your state laws for more details.
Health Insurance
Having a healthy nanny is an asset to any family. Thus, one benefit you may want to consider adding to your nanny’s compensation package is a health insurance contribution. Many families pay at least half of the nanny’s chosen plan, but the precise percentage is up to you to determine.
Your nanny will be providing care to your child and it is important to treat them as a respected employee. Creating a compensation package that both parties are happy with can help establish a solid long-term family/nanny relationship.
