10 Common Costs of Hiring a Nanny
Many parents need to consider all of the costs involved when hiring a nanny before making the decision to actually hire one. According to the 2012 International Nanny Salary and Benefits Survey, full-time nannies earn about $700 gross per week. However, nanny salaries and the cost of hiring a nanny vary greatly and for good reason.
Here are 10 common costs of hiring a nanny that parents should take into account.
- Consider whether the nanny will be required to work part-time or full-time. Nannies must be paid for each hour worked. Live-out nannies, and in some states live-in nannies, must be paid overtime after working 40 hours in a 7-day period.
- Where you live. Nanny salaries vary greatly from geographical location to location. Nannies who work in major metropolitan areas typically get paid more than those who work in the suburbs.
- Transportation is another cost associated with hiring a nanny. Does the nanny have her own transportation to transport the kids where they need to go? Or will the parents have to purchase a vehicle for the nanny to drive so the kids can get to soccer practice? Purchasing a vehicle, providing additional insurance and mileage reimbursement are all added costs.
- Some nannies live with the family. Live-in nannies generally get paid slight less than live-out nannies; however as part of the package, parents must provide live-in nannies with room and board.
- Education and experience. The more education and experience a nanny has, the greater her earning potential.
- Some parents expect their nannies to do household chores. While nannies typically do the children’s laundry and keep the children’s areas neat and clean, there is usually an added cost if nannies are expected to do more.
- Taxes. Nannies are household employees and not independent contractors. Parents must pay the taxes associated with being a household employer. These taxes amount to about 10% of the nanny’s gross salary.
- Paid time off is another common cost for parents to think about when hiring a nanny. If the parents need to secure alternative coverage when the nanny is off, additional costs will be incurred.
- A common cost that some parents tend to forget is that a nanny will need spending money when she takes the children out of the house. A nanny must have cash available to spend on the kids when they take trips or eat at restaurants.
- Finder’s fees. If a family using a placement agency to find a nanny, the fees can run from anywhere to a few thousand dollars or more. By using an online nanny website to recruit and screen a nanny independently, that fee can be greatly reduced. Most sites charge around $50 for membership.
Parents need to weigh all of the costs of hiring a nanny to ensure they can afford one. The costs associated with hiring a nanny can vary because of the issues discussed.
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