10 Things to Consider About Nanny Compensation
1. Experience, education, special certifications and skills
Things like college degrees (especially relevant ones), useful certifications and language skills can up a nanny’s pay.
2. The number of children she will be watching
More kids often means a higher wage.
3. Extra duties and chores
Many families have combined the roles of nanny and house manager. More
responsibility usually means a higher wage. Most nannies are asked to do light meal prep and clean up. Deeper cleaning, cooking and extra errands can lead to higher compensation.
4. Will she need to care for an infant or help with potty training?
Consider the varying demands of different developmental stages. Infant care or potty training require extra attention and skills.
5. Are you a demanding employer?
You know who you are; ) If you want to call your nanny on her days off or expect a lot of flexibility with last minute changes etc, you may want to offer her a little more money for the extra pressure.
6. Cost of living
Wages vary from state to state and from city to city. There are also differences in pay for live-in and live-out nannies.
7. Glowing references
If people love your nanny, she is coveted and will not be on the market long!
8. Paid sick days, holidays, vacation and health insurance
Any of these perks are greatly appreciated and can incentivize your nanny to stay with your family. However, federal law does not require you to give your nanny paid time off. Small employers are not required to offer health insurance but there is a tax benefit for doing so. The money spent is not considered taxable income for you or your nanny. If you contribute at least 50% to your nanny's health insurance costs, you can receive a tax credit of up to 50% of your contribution. The total credit is determined by your nanny's average annual salary.
9. Guaranteed hours not fixed salaries
Nannies are considered household employees and must be paid for every hour they work. Families should expect to guarantee a fixed number of hours that compensate nannies appropriately for the max time she might work in a week. In other words, if you invited her to work 20 hours a week but only needed her for 17, she will rightly expect to be paid for the total time she reserved for your family (20 hours). Hours can not be banked for another time. If your nanny works more than the expected 20 hours, she should be compensated for the additional hours at the hourly rate you have agreed upon. Overtime pay or time and a half is required for all hours worked over 40 in a 7 day period. The frequency of nanny pay depends on which state you live in. PA has a maximum lag time of 15 days meaning you must at least pay your nanny semi-monthly. Learn about paying taxes on household employees here.
10. Will she use her own car to transport your kids?
Wear and tear on a vehicle, mileage, gas, insurance… all of these factors should be considered when assessing your nanny’s compensation. Standard reimbursement is 58 cents per mile driven.
Average Hourly Nanny Compensation
The below chart is from the International Nanny Association (INA)
Hourly Rate by City of Employment in PA
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