 Matchmaking at it's Finest!
Our unique matching framework offers a holistic approach based on researched strategies to maximize your nanny’s performance and decrease employee turnover. We start by getting to know your family. We don’t require a ton of your time but we will ask for a phone consultation, a completed Family Questionnaire and a meeting in your home with your family present. Your logistical needs (schedule and job responsibilities), baseline nanny requirements (skills and experience you are seeking) and clean background checks (no criminals or bad drivers) are only the first steps to finding a successful match! Much More than the Bare Minimum! We want to know about your personality, management style and parenting values. If you are an extroverted micromanager with a “clean your plate” attitude, we do not want to match you with a shy nanny who feels suffocated under close supervision and lets your kids opt out of eating their veggies. Every family has a different set of values and we want to find nannies who can go with the flow intuitively in your home. We aren’t going to ask you to take a Myers Briggs but we will go over some basic questions to get to know you including common parenting scenarios about things like sharing, mealtime and temper-tantrums. This information will be used to find like-minded candidates and to train them to work with your kids. Nannies are often seen as extensions of parents. We minimize stylistic differences to help create a consistent environment for your family. Families can select from the below specialized trainings for their nanny: *one training is included with nanny placement; additional trainings are available Infant Care Building Healthy Caregiver-Child Relationships Behavior Strategies Special Needs Care Reading Support We facilitate communication and provide feedback for 3 months post hire. Our thorough process will minimize time spent managing your nanny down the road because we will have laid the groundwork for a successful relationship. We empower nannies to be the best they can be!
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 Nannies are Considered Household Employees
How Much Should You Expect to Pay? Example: You pay your nanny $3,000 a month in wages. You owe about $229.50 per month for Medicare and social security and about $35 per month in unemployment taxes. The total monthly cost of your nanny is around $3,264.50. For a quick rough estimate, tac on 10% to your nanny's salary. Paying Overtime You are required to pay your nanny overtime for all hours worked over 40 in a 7 day period. This must be 1.5 times the normal hourly wage. How Much Should You Expect to Earn? Example: You earn $3,000 a month in gross wages for your nanny position. You will take home between $2,400 and $2,550. *please note this is an approximation Tax Benefits for Families Ask your employer if they have a Dependent Care Account. You can set aside up to $5,000 of tax free income to cover childcare expenses which can lead to a savings of up to $2,300. Or, claim the Tax Credit for Child or Dependent Care (Form 2441) on your income tax return. Why is my nanny considered a household employee and not an independent contractor? The below information is straight from the horse's mouth (IRS Publication 926). You have a household employee if you hired someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done, but how it is done. If the worker is your employee, it doesn't matter whether the work is full time or part time or that you hired the worker through an agency or from a list provided by an agency or association. It also doesn't matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job. Now that we know nannies are considered household employees, let's breakdown the tax situation. Household Employers are expected to withhold and pay social security and Medicare taxes if they pay cash wages of $2,100 or more during the year. The taxes are 15.3% of cash wages. The employee's share is 7.65%. (You can choose to pay it yourself ) The employer's share is 7.65% *FYI: Nannies will also pay federal income tax. This will probably be 10, 12 or 22% depending on their taxable income. Household Employers are also expected to pay federal unemployment tax if they pay total cash wages of $1,000 or more in any calendar quarter to household employees. The tax is 6% of cash wages. Wages over $7,000 a year per employee aren't taxed. Employers also may owe state unemployment tax. *This can change from year to year. Unless you live in Wyoming, Washington, Texas, South Dakota, Nevada, Florida or Alaska, nannies will have to pay state income tax. State income tax Pennsylvania has a flat rate of 3% New York has an eight bracket system. Nannies likely fall in the range between 4 and 6.33%. Details below. 4 % on the first $8,500 4.5 % on income between $8,501 and $11,700 5.25 % on income between $11,701 and $13,900 5.9 % on income between $13,901 and $21,400 6.33 % on income between $21,401 and $80,650 New Jersey has a seven bracket system. Nannies likely fall in the range between 1.4 and 5.25%. Details below. 1.4 % on income between $0 and $20,000 1.75% on income between $20,000 and $35,000 3.5% on income between $35,000 and $40,000 5.525% on income between $40,000 and $75,000 Local income tax may also apply! Philadelphia's rate is 3.8% Note these rates can change from year to year so be sure to do some research! To boil this all down, if you have a nanny, you are a household employer and must pay 7.65% of cash wages for medicare and social security (or 15.3% if you choose to cover your nanny's share). If your nanny earns more than $1,000 in a given quarter, you will need to pay an additional 6% for unemployment taxes (wages over $7,000 a year aren't taxed). You are expected to withhold your nanny's taxes. You will have to file state and federal returns quarterly and pay your employer and employee taxes. You will also need to prepare year-end tax documents that include a W-2, W-3, Schedule H and Sate Annual Reconciliation. If you are a household employee, you will be paying into social security and Medicare, federal income tax, state income tax and possibly local income tax. Your employer is expected to withhold these taxes from your paycheck and pay them quarterly. What does this mean in terms of take home pay? You will take home 80 to 85% of your gross wages. There are many free tax calculators floating around on the web. This one seems to work well. You will need to file year-end tax documents. Employers! The good news is Allo can set you up with a reputable payroll service who will take care of everything for you! They register for federal and state tax accounts, automate payroll and prep and file tax documents. This will cost about $200 per quarter. Additional Resources International Nanny Association Paying Employment Taxes HomePay Dependent Care FSA If you are a family searching for a great nanny, sign up for a free placement consultation here. Au pair, babysitter, mother's helper, nanny! What does all this mean and what's right for your family? Here's what you need to know. Nanny: Nannies are considered household employees and must be paid hourly. They provide customized childcare in your own home. They can assist in transporting kids to and from school and outside activities. Many parents consider their nannies extensions of themselves. Sometimes, nannies serve a dual role and also act as household managers. They might run errands, go grocery shopping, cook, do laundry and light cleaning. This person can live with you or on her own. Historically, nannies have been female but this is changing. The national average pay for a nanny is around $19 per hour and may or may not include benefits. Experience, education, special skills and job requirements will impact how much your nanny will expect to earn. Nannies usually work regularly scheduled shifts and can be part-time or full-time employees. Au pair: This is a person between the ages of 18 and 26 from another country that lives with your family in a private bedroom and helps take care of your children. They are not expected to take care of other household tasks. Au pairs receive a weekly stipend of around $200 or more depending on minimum wage and do not work more than 10 hours per day or 45 hours per week. The host family has an obligation to put $500 towards their higher education. Their stay can be up to 24 months in duration and they can petition for extra time. Note, au pairs can not work in homes with infants under 3 months of age unless a parent is home with them. Babysitter: This person often takes care of your children less frequently than a nanny and on a sporadic basis. This might be an afternoon or evening shift that probably isn't part of a recurring schedule but could be. Babysitters typically don't take on as much household responsibility as nannies and often have less training or experience. Babysitters earn anywhere between minimum wage and $20 or more per hour. PA residents should expect to pay around $16 per hour but should also consider the number of children being supervised and the nanny's experience and certifications. Mother's Helper: This person supports moms at home. They might help with household tasks and provide general childcare. They are there to act as another set of hands. Usually, mother's helpers are not as experienced as nannies. Most earn less than babysitters and nannies because they are often less experienced and only assist the mother. This isn't always the case! Specialists: There are a variety of specialists in the nanny world. Infant care, multiples, behavior, special needs, bilingual, private teachers etc. Co-nannies: Some families have more than one nanny working with their children at a time. They may fill separate shifts or work together. Each child may have his/her own nanny to create a 1:1 care ratio. Nanny Share: Nannies take care of children from more than one family at a time. One family usually acts as a host. This can lower the cost of hiring a nanny and provide opportunities for children to socialize. Each family pays the nanny 60-70% of an agreed upon hourly rate. Therefore, she earns more and families pay less. In-home Day Care also know as Family Child Care: This takes place in the caregiver's home. The Caregiver often looks after children from multiple families. It's common to have 1 Caregiver to 6 children but the legal ratio depends on the ages of children and the state where the in-home day care operates. Find out your state's caregiver/child ratio here. Day Care: Provided at a center or institution that specializes in child care. There are usually multiple caregivers depending on the number of children present. Caregivers are usually referred to as Teachers. Where does Allo Nanny fit in? We place longterm nannies with families. Our focus is on family/nanny compatibility matching, training and ongoing support. Each placement is customized to the family's unique situation. We provide oversight, advice and support through out the process for 6 months after the nanny has been hired. Sign up for a free consultation here. The below chart is from childcare.gov and offers an overview of Caregiver ratios to children in different age groups.  |
