Can someone explain to me how a live-in nanny situation works?
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Anonymous
| We are buying a house with a full one-bedroom apartment in the basement and so are considering a live-in nanny. How does pay work? Do you give them free rent and then pay them as well? How much do you discount the pay since the rent is free? Or do you set a rent, have them pay it, and then pay them like a regular nanny? Any suggestions would be welcome -- this is an idea we've never really considered before. Thanks in advance! |
Anonymous
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Well, you can pay the nanny for instance $15/hr. If she works 35 hrs a week that $525 a week and $2100 a month. Seeing as some rent here is $2000/month. You should probably set her Net pay to be one amount and then subtract one weeks pay per month
So in my example pay less $525 a month. So per month she would earn $1575. Still enough to save, pay for things she wants etc. but enough that you wont be out a lot of money that you could have otherwise rented the apt for. |
Anonymous
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I would assume if the nanny is to live in your home, then you would cover most or all of her living costs. I.e., rent, electricity, water, food and cable/internet service.
Then you would also pay her a salary, but not quite as much as you would if she lived out of your home. This would be if she worked for your family on a full~time basis. However if she were to only do part~time childcare, I would either ask her for some rent or just let her barter her babysitting services for the rent. Hope this helps. |
Anonymous
| First, you should check your local jurisdiction to see of it is legal to have a non-relative live in your basement. For instamce, in Town of Viemna it is not legal. |
Anonymous
| Not to be rude, but it is NOT 'free rent' when the nanny is working. Just a pet peeve that I can't stand... |
Anonymous
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You still pay her. Typical cut is $2-3 less than she would make as a live out nanny.
It may be more profitable to rent it to a stranger- most people don't want to live with their bosses and won't pay market or close to market prices for the joy- either in "real" funds or via a much smaller pay check. |
Anonymous
Sure it is. It's a benefit, like any other, and is considered in the compensation package offered to a nanny. |
Anonymous
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The value of the rent is not a taxable benefit is being a live in is a requirement of the job. This is important for both you and your nanny from a tax standpoint. If you charge her rent then she is paying that rent after taxes which hits her and you would be taxed on the rental income which hits you.
Live in nannies in this area make between $400-$600 a week for up to around 50 hours. She should have a private room and preferably her own bathroom. Live-ins are usually provided food but not an unlimited debit card at the grocery store. Most arrangement involve inviting the live in to share family meals, add some of her favorite things to the grocery list etc. If she wants something expensive, wants to eat out, wants to stock her own food this is up to her. She would cover her own personal things like shampoo etc, you would supply laundry detergent and other bulk shared things. Un-like au pairs, allowing a live-in to use the family care as a personal car on off hours is not as common. |
nannydebsays
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No, you pay them slightly less than you would pay a live-out nanny per hour, and you do not charge rent. For example, if you need a nanny 50 hours a week, and would pay a LO nanny $15/hour, you would pay a LI nanny $13/hour. The nanny not having to pay rent is offset by the nanny living at work. Although I am sure you would not take advantage of the nanny living under your roof by constantly asking her to watch the kids "for a minute" when she is not scheduled to work, many many employers do just that. Therefore, a LI nanny winds up being considered to be available to work "on call" without extra pay, and that big negative means a very low wage is not acceptable. If your hope is to "make enough" on rent to pay a nanny, you'd be better off just renting your bsmt apt out to someone willing to pay market rate, and then using that money to pay a portion of a LO nanny's wages. |
Anonymous
| Being a live in nanny is the worst job I've ever had. You would have to pay me $50/hr to ever live with my employers ever again. It's not a perk for the nanny, she's living at her job!! |
Anonymous
I totally agree! I was a live-in for 2 years and will NEVER do it again. |
Anonymous
+3 |
Anonymous
| Being a live in is like being someone's indentured servant.... |
Anonymous
No, most of the time money is deducted from overall pay rate to "cover" the cost of room and board. If someone is paying full rate like they would for a live-out nanny (not reducing pay), then it would be free rent. But most people that would tell you they are paying full rate, are already paying on the low end of the scale. |
Anonymous
| Oh please! You don't always know if it will be a good fit going in . |