Confused by salary discussions--do these rates include benefits, taxes, etc?

[Anonymous]

Anonymous wrote:OP here. As PPs have noted, my question was about what I can expect to pay. If I can't afford it, I'll consider not going back to work. But I'd rather not start with a set figure and then work backwards into hiring a crappy nanny because I wont pay more for a good one . But I guess I can look at it the other way too: My take-home pay is roughly $65K and I guess I was hoping the total costs for a nanny would be under $50K. Thanks to the PP who listed all associated costs. We don't want our nanny to drive and the babies won't take classes so that'll shave some expenses off.

I'm the one that gave the breakdown. Obviously, you can cut down the bonus and extra spending for activities. You also have to remember that the 50k isn't what the nanny takes home that just what you will probably pay with taxes at the $20 per hour mark. You can offer a lower hourky rate and cut the over time, that will keep you under 50k.

For those who seem surprised by my breakdown, I actually make more and have more benefits being a nanny for three children. All my friends who are Financial analysts right out of college are shocked that I make more then they do. However, I'm reaching the top end salary for nannies, while they are just starting out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yikes so I need to pay time and a half for anything over 40 hours?

Absolutely.

40 hour at $20 is 41,600 a year before your share of taxes
Health insurance $150 a month is 1800, you don't need to tax it
Yearly bonus 1 week $800, legally has to be taxed

Plus gas reimbursement, petty cash, classes for the childern; let's say comes to 2k for the year

You're looking at 46k before taxes. So I'd say easily around 50k after you get tax breaks/credits.

Add another 15k if you want 50 hours a week.

So somewhere between 50-60k a year

That's cute. My first job out of college as an investment banking analyst in NYC paid $49,500.

Gas reimbursement, petty cash and classes for children would never be factored into a "salary" for the nanny -- those are incidentals that are receipt/based reimbursements, and I can't imagine asking my nanny to pay for registration fees for classes anyway.

An annual salary of $46,000, is about $16/hr at 50 hrs (factoring in OT) and more than most Congressional staffers, Federal employees, and non-profit employees make in DC.

MB here, and it's actually pretty accurate. We pay about $42,000 a year and then about $2000 in OT/gas reimbursement. We only use our nanny 8 hrs/day. Occasional OT is always paid a 1.5. b/t/w i'm a fed and my salary is $181k. I think the secretaries at my agency make about $46k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. As PPs have noted, my question was about what I can expect to pay. If I can't afford it, I'll consider not going back to work. But I'd rather not start with a set figure and then work backwards into hiring a crappy nanny because I wont pay more for a good one . But I guess I can look at it the other way too: My take-home pay is roughly $65K and I guess I was hoping the total costs for a nanny would be under $50K. Thanks to the PP who listed all associated costs. We don't want our nanny to drive and the babies won't take classes so that'll shave some expenses off.

OP, do you live in easy walking distance to parks, libraries, and other places where Nanny can go with your kids? If you are seeking a long term Nanny, you will need to let her go out with the kids occasionally. If you find that idea silly, think about it again after you confine yourself to your house with 2 babies 10+ hours a day for 5 days straight.

No one is happy stuck at home alone with 2 babies. Not allowing reasonable outings will seriously minimize your pool of candidates.

This is what I have done during my maternity leave and it hasn't been that bad. We've used the car less than half a dozen times during my almost four months of leave. But we do live within walking distance to parks and library anyway.

[Anonymous]

It is confusing and we have a tax company that helps us out - I would strongly encourage it. Plenty out there to do your taxes for about $30 a month. All these sites have tax calculators (we use GTM taypayer services). We pay all taxes, which is very expensive. Roughly an additional $800 a month on top of the nanny's salary. We don't pay health insurance but most nannies will probably factor this into thier going rate. I would suspect that most private plans or healthcare.gov are around $200-300 a month.