New to Area: Nanny pay and benefits questions.

[Anonymous]

You don't need a tax attorney. I use myhomepay and they pretty much handle everything once you fill out the paperwork. You just enter hours worked and make sure there is enough money in your account when they go to take out for tax payments (monthly in DC and quarterly for fed.)

[Anonymous]

Anonymous wrote:Snow days.... Great point. Thank you.

We haven't had an American-born nanny before, so that's not important. Our nannies were from Colombia and Mexico, but we checked their papers. $17-20/h + taxes on top is affordable, so that is good.

Do most people use their own tax attorney for the nanny taxes?

Thanks

I do the taxes myself. It takes a little time to get set up, especially with the state taxes, but it's not hard to do. Most people who don't do payroll themselves use a payroll service like GTC or Intuit.

[Anonymous]

If you're interested in doing the taxes yourself, give yourself one full day to research what you need to do, and to apply for any tax ID numbers you need. It's easy, but can be confusing if you're trying to do it at the last minute before her first check.

Also, check to see if your state requires worker's comp. Mine does not, but I carry it anyway.

[Anonymous]

I live in DC-proper. The going rate for nannies in my neighborhood is $21-23/hour for two kids. It'd be hard to find a nanny for much less. (And yes, just about everyone I know pays on the books, but I do know a few who have chosen not to and pay in cash). We give her all Federal Holidays, the week between Christmas and New Years, the day after Thanksgiving. She gets two weeks paid vacation -- one week at our discretion, one week at her discretion. And I think 6 sick days - but we're not really tracking that, honestly.

[Anonymous]

Anonymous wrote:I live in DC-proper. The going rate for nannies in my neighborhood is $21-23/hour for two kids. It'd be hard to find a nanny for much less. (And yes, just about everyone I know pays on the books, but I do know a few who have chosen not to and pay in cash). We give her all Federal Holidays, the week between Christmas and New Years, the day after Thanksgiving. She gets two weeks paid vacation -- one week at our discretion, one week at her discretion. And I think 6 sick days - but we're not really tracking that, honestly.

This is a great job. The only thing that would make it better, but still within the range of average) would be all vacation days at her discretion and health insurance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You should aim to pay $17 an hour, on the books. People in DC go on the books because they can lose their jobs if they have an IRS scandal.

I don't know of any American-born nannies who earn less than $22/hr, FYI.

Mine does--but we are in silver spring and not DC. She gets $15 an hour plus paid holidays and reimbursement for milage on her car. She is a 27 year old american born dynamo! This myth of the "non-existant nanny for under 20 an hour" is a joke on this board.

[Anonymous]

Anonymous wrote:But so very many are still off the books here, and paid in cash. How can we ever know what percentage of nannies are paid this way by employers who are taking advantage of them?

Except I've come across many nannies who want under the table. During the interview I give them the choice, without mentioning I could probably pay a higher rate if I didn't have to employer taxes. So the question is posed neutrally or what did you do in the past. I was surprised that about half say they don't want to report. Some say they got 1099s and did the income taxes themselves. They didn't understand I was talking about employer taxes I need to prepare for, not her income tax responsibility.

As for the op question, it really depends on what you consider good. Look around online nanny sites and put out an ad.

[Anonymous]

Yes do plan to pay taxes - experienced nannies in the area mostly expect it. And $15 - 20 is the usual range for one child, add about $2 an hour more for 2 or more. The closer to downtown neighborhoods the higher the pay, out along the beltway you can get the lower end of the scale. I've used Homework Solutions for 3 years, easy, convenient, and a fraction of the cost of my CPA. I know some go DIY, I don't have the time or inclination to figure that all out.

[Anonymous]

Anonymous wrote:We are moving from SoCal to DC/MD next month and will be looking for a nanny 40 hours per week from August for a 2 year old and a 3 year old. Both girls.
We want an experienced nanny, ideally aged 25+, with a car, and willingness to take the girls to preschool and activities, cook for them, do their laundry, and keep them disciplined and entertained.

In SoCal we pay $20/hour with no health benefits. We give 6 Federal paid holidays, 10 paid vacation days, and 5 paid sick days per year.
We also pay if the kids are away because we decided to go away (of course), though we try to coordinate vacation ahead of time.
We don't pay nanny tax. None of our friends do either. Everyone here deals in cash with nannies.

My husband and I like to travel without the kids for 3-8 days a couple of times a year. We pay $300/24 hours (instead of the $20/h) for this, and give the first day we are home as a paid vacation day if it is a week day. We also have the odd night where we are both away for work, also paid at $300/24 hours.

We give an end of year/holiday bonus, the value of which is dependent on performance and length of service. This is between 1 to 2 weeks pay, approx. prorated for length of service.

We have heard that the DC/MD nanny market is a similar market to the one we are used to. We think we are on the more generous end of average in our friendship group in terms of T&Cs, though certainly not the most generous. We do try and be flexible and fair.

Do you think this reimbursement structure would attract a good nanny in DC/MD?
Do most people pay nanny tax in DC/MD?
Where would be most likely to find a good, experienced nanny?

Many Thanks.

I can tell you if you offered me or any of the nannies I know the above package we would all say no thank you. Sorry, but its just not going to cut it in DC. The pay is too low, the entitlement you seem to have is too high, the holidays and sick days are a joke, etc.

[Anonymous]

I would caution you about trying to look for nannies on this board, they all seem to be a bunch of fruit bats. I'd go care.com before a DCUM nanny. Otherwise try an agency.

[Anonymous]

Anonymous wrote:I would caution you about trying to look for nannies on this board, they all seem to be a bunch of fruit bats. I'd go care.com before a DCUM nanny. Otherwise try an agency.

+1. And you will hear that often nannies make $30/hr! Or the bare minimum you can pay is $20/hr otherwise you're scum and getting a piece of crap nanny who's too stupid to spell his/her own name

[Anonymous]

I am a nanny caring for two kids; this is my third family to work with. My employers have all been happy with me. And all jobs have been from DCUM postings. My point is that it is unfair to judge all nannies from one particular site or area.

My suggestion is to post an ad on care.com as well as this site specifying what your needs are. Then conduct some phone interviews, and plan to do one on one interviews with the candidates that most fit your needs irrespective of what site they responded from.

In terms of rates and taxes, start at $18 if you're not paying taxes. Based on my experience in the NW DC area, $18 to $22 for two kids is a good range to work with. And you will get good experienced candidates who are ok with cash payments. Good luck.

[Anonymous]

Hi you still looking nanny? I'm nanny I have friends who is looking family please letme know if you still looking Nanny [e-mail]

[Anonymous]

Anonymous wrote:Interested to hear what others say, but I think most people pay on the books. Your pay rate sounds fine, but do structure your pay so that you are paying overtime as required. Health insurance is not typical.

Why wouldn't you offer tax-free health insurance?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Interested to hear what others say, but I think most people pay on the books. Your pay rate sounds fine, but do structure your pay so that you are paying overtime as required. Health insurance is not typical.

Why wouldn't you offer tax-free health insurance?

Nanny can buy it on her own if she wants.