Reply to What is the total yearly cost of employing a nanny?

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[quote=Anonymous][quote=Anonymous]There are a dozens of threads on the going hourly rate for a nanny, but I’m interested in the total all-in cost for your family every year — base rate, overtime, employer taxes, workers comp coverage, payroll service fee, mileage reimbursement, health insurance stipend, etc. (What other common expenses am I missing?)

How much does it really cost for you to employ a full-time, year-round nanny who makes $25-$35/hour (or less or more)?[/quote]

The $25/hour for 40 hours a week nanny is $52,000 a year. The $35/hour for 50 hours a week nanny is $100,100 a year.

Payroll plus employer’s share of taxes adds about 10% to the gross wages. Add an unknown amount for workers comp and added homeowners insurance, since most numbers differ drastically.

The QSEHRA reimbursement can add up to $5,850 to your cost this year IF you add it to the wages instead of taking it out before taxes.

Mileage reimbursement is 65.5 cents per mile. Again, no way of giving you a solid number because YMMV, but 100 miles a week is $65.50, which is around $3,200/year.

Add in 1-2 weeks pay as a yearly bonus.

Best guess for the $25/40 nanny is $62,000 to $72,000+ depending on the variable that I can’t calculate. (All the insurance costs plus mileage.)

Best guess for the $35/50 nanny is $115,000 to $130,000+ depending again on those variables.

In a share, you’ll be looking at 70% of the estimates per family plus those variables. So anywhere from $42,000+ to $91,000+.

Most people can’t afford nanny care. If you aren’t sure whether you can afford a nanny, the easiest way to estimate is to look at 1B/1B apartment rents near you, multiply that by 12, then divide by 3 and multiply by 10. That gives you the gross wage which will allow a nanny to spend 30% of her earnings on rent.

$52,000 a year gross gets nanny an apartment that rents for around $1300/month. If you wouldn’t live in your local $1,300/month apartment, you can’t afford a nanny. [/quote]

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