Nanny cost - rate and taxes

[joycechen]

Just had a nanny share arrangement fall through because of lack of clarity around what both families, and the nanny, were expecting in terms of wages and taxes. No hard feelings, but I want to gut-check the numbers we talking about. Nanny share for 2 infants (3 and 5 months old) with an experienced nanny. Live out. Agreed upon average rate came to approx $21/hr for 38 hours a week over 4 days. We assumed this was a gross wage and it turns out the nanny didn't want to deal with taxes and was seeking cash.

From what I can tell, $21 seems squarely within market price for nanny share for GROSS wages for above-board nanny share, especially when we're not talking about any overtime. Have I got this wrong? Location is NW DC and nanny lives in DC and can take bus to work.

[Anonymous]

I would expect nothing less than 25/hr for any share, even for just one child as a matter of fact. Gross rate, of course. I am speaking for myself. I'm sure someone out there would do it for less. No idea what you were hoping to get for 10/hr for each of you. She quit because of needing an additional 2-3 dollars an hour?

[Anonymous]

In DC, the standard rate for a two-infant share is $18-20 per hour gross. $21 is also reasonable, especially for a nanny with significant experience and a college degree. That said, there doesn't seem to be a huge rate reduction when paying under the table.

[Anonymous]

OP, I don't think you're wrong - your gross rate is competitive in the market place. If you were paying $21/hr under the table that would be at the top of the market (and carry with it all the legality issues of course).

[Anonymous]

OP:

The first time I hired a nanny (in a share situation) I was very clear in phone screenings that the share would be paying legally. This was part of the phone screening. I would say 2/3 of applicants who came for an interview told us they wanted cash. It was crazy.

I was very, very clear. It's just the way the game is played here I suspect. Eventually we did find an on-the-books nanny who then proceeded to ask for cash for the next 18 months. That was a different kind of fun.

Good luck.

[Anonymous]

Nope, OP, you sound at normal range and paying legally is the right thing to do. You dodged a bullet with that one. No worries. If you're not getting the candidates you want at that range, try bumping up another dollar or two. It won't end up being that much for you individually, but could make the job a lot more attractive at $23/hour than $21/hour. It is two young infants too, so you'll want to be sure you're getting someone very qualified and trustworthy.

[Anonymous]

That's a great range. Shares are $17-20 to start (lower end for more overtime/less experience, higher end for shorter hours/more experience)

[Anonymous]

Lol what is up with this? It's $15 minimum for 1 child live out in this area- so a share would never be less than $20 since each parent would be getting away with care for $10 an hour- that may be ok but that's the minimum and if you are talking a Nanny with experience you are looking at $25-$30.

For 2 infants you should be offering at least $25- that would only be $12.50 per hour for an infant. Share wages depend on ages too and 2 infants is a ton of work- daycare for an infant is $250 alone so 2 infants is $500 for daycare and a Nanny is always significantly more since she is offering private individualized care in your home at your hours and coming to you. $20 after taxes is about $16 so if she wanted $20 net you will have to offer about $23- $25 gross.