New to Area: Nanny pay and benefits questions.

[Anonymous]

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.

[Anonymous]

Plan to pay taxes, and keep everything else the same. Also, OT at 1.5% of base pay for everything over 40.

If you want to pay under the table, you'll find people, and can drop it to $18/hr..

[Anonymous]

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.

[Anonymous]

Interesting that you only give 6 federal holidays. I think people around typically give more, since many more offices in DC operate on the federal schedule.

Don't forget to make a plan for snow days if the federal gov't closes- in other words if she can't come in, you will still pay her.

[Anonymous]

I think many, many people pay above board (e.g., pay the taxes) in DC, so your nanny may expect it. Also, it kind of screws your nanny in the long-run if she's a citizen/legal resident and not paying into Social Security.

If your nanny's not legal, than it's probably less of an issue. But our nanny's legal, and we pay taxes for her.

[Anonymous]

Because so many people around here have security clearances, are aspiring politicians, work for the justice dept, etc., a much larger number of nannies are paid on the books here than in most US cities.

[Anonymous]

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?

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

In SoCal, everyone is usually more laid back & casual about stuff so as a working nanny in the area, most nannies work under the table.

There are a lot of undocumented workers since we are so close to the Mexican border and many women need work so people usually employ them for childcare which many do for the cheap, tax-free labor plus they get the benefit of their child becoming fluent in a second language.

[Anonymous]

I live in So Cal and I pay my nanny on the books so speak for yourself and your cheap/lazy friends.

[Anonymous]

Anonymous wrote:I live in So Cal and I pay my nanny on the books so speak for yourself and your cheap/lazy friends.

OP here. We wanted to pay on the books, but both of the two nannies we've had were really against it. Every person we interviewed asked to be paid cash off the books.

[Anonymous]

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

[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.

American born college educated career live in nanny currently earning 11. The most I've ever earned was 13.50.

[Anonymous]

Anonymous wrote:

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.

American born college educated career live in nanny currently earning 11. The most I've ever earned was 13.50.

I'm sorry.