Health Insurance for Nanny

[Anonymous]

Hi - I am trying to get a handle on whether or not health insurance is commonly provided (whether in whole or in part, i.e. a contribution/stipend) by employers in this area. Thanks in advance for your insight!

[Anonymous]

If you can afford it, of course you offer it, just like at your job, no?

[Anonymous]

That is not my question, 13:41. My question is whether it is commonly provided, i.e. whether or not it is included in a standard compensation package for a nanny and therefore expected by most nannies or whether it would be considered a bonus.

[Anonymous]

no, it is not commonly provided.
Sometimes, if you keep your nanny long term, it is a perk offered later on down the road in lieu of a raise.

[Anonymous]

It is not commonly provided, OP.

[Anonymous]

For your average nanny it is not common.

For very experienced nannies or those with special training, it is fairly common. (>75%)

I was offered healthcare upfront but I know others who negotiated it onto their package so some might see it as an expected lementvwhile others will consider it a perk.

[Anonymous]

It will soon be legally mandated under Obamacare. Why do you ask, OP?

[Anonymous]

OP here - thanks for all of these replies. 14:13 I am trying to craft an attractive compensation package and understand what items must be in the offer and what items I can hold as incentives/bonuses/perks down the road!

[Anonymous]

Anonymous wrote:It will soon be legally mandated under Obamacare. Why do you ask, OP?

That's not true, only employers with 50+ employees will be required to provide health coverage under obamacare. That said, I see health coverage as a perk, not requirement (I am a nanny).

http://www.nolo.com/legal-encyclopedia/does-the-health-care-reform-law-require-me-insurance-nanny.html

[Anonymous]

Anonymous wrote:It will soon be legally mandated under Obamacare. Why do you ask, OP?

You should really do a teeny tiny bit of research before you make false claims.
http://obamacarefacts.com/obamacare-facts.php
• Employers with more than 50 employees must insure their workers or pay a tax (like the current state run unemployment and workers compensation programs)

[Anonymous]

MB here. I don't think this is a common benefit - at least not the way vacation/sick leave, paid holidays are. We did not offer to our nanny in her first year. We added it as an additional benefit in her second year.

FYI, it is something that you can add that has real value but does not come at a higher cost to the employer (as a raise would - with increased tax liabilities etc...), nor is it taxable income to the nanny. So it's kind of a nice thing to be able to offer.

In our case we do not pay the full cost, we contribute a set monthly amount (which ends up being about 75% of her costs). You need to keep in mind that the cost of health insurance can/will vary based on the individual's health, age, etc... and that can be an uncomfortable thing to get caught up in. I would recommend (if you decide to offer it now or later) that you decide on a set monthly amount you want to offer, rather than simply saying you'll cover insurance costs.

For tax purposes, to ensure the legality of it, you'll need some documentation that the nanny has health insurance (not just pocketing the money as extra income) and then write on the check what it's for (health insurance costs or something like that). Not likely you'd be audited of course, but we always felt better safe than sorry.

[Anonymous]

Who on earth would want a nanny without basic health insurance?

[Anonymous]

Anonymous wrote:Who on earth would want a nanny without basic health insurance?

Exactly! I hate that this is considered a "perk". Do MBs also consider their health insurance a perk? Jeez. I know its expensive and hard to do as an individual employer, but please stop calling it a perk/bonus/incentive. Not having insurance is really crappy and if you can afford it but are holding off on it to give as a raise or perk, please reconsider.

[Anonymous]

I do not offer it. I think she had coverage through the state.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Who on earth would want a nanny without basic health insurance?

Exactly! I hate that this is considered a "perk". Do MBs also consider their health insurance a perk? Jeez. I know its expensive and hard to do as an individual employer, but please stop calling it a perk/bonus/incentive. Not having insurance is really crappy and if you can afford it but are holding off on it to give as a raise or perk, please reconsider.

OP here. Yes, I consider my health insurance a perk. It is not required to be provided by my employer. If my employer did not provide it I would have negotiated a higher salary...hence my efforts in trying to understand what is the norm for nannies.