Compensation package with Health insurance

[Anonymous]

What is the typical compensation for a nanny caring for a toddler that goes to school half day and an infant. We would pay for health insurance, vacation, sick/personal, federal holidays and snow days based on when the federal government closes.

My two questions are:
What is the hourly range if the nanny would have a guarantee of 40 hrs per week and occasional 45 hour week?

Second how much of the insurance does the employer pay? Many who I've spoken with say that insurance can run anywhere between 250-600/month. Currently in my work I pay for half of my insurance and my employer pays for the other half, but is it customary to pay 100% of the insurance premium for the nanny.

Is the compensation package adjusted based on the price of the insurance premium?

[Anonymous]

Health insurance is not as common as the other perks. A lot of families who offer it give a stipend. I told my nanny I would pay up to $300/month.

If you only have the one employee, you can still reimburse for it tax free. If you have more than one employee, you will need to use SHOP (small business exchange) to get the tax benefit.

Either way, you have to show that the money actually goes toward health insurance.

[Anonymous]

We pay 100%, which is $350 directly to insurance company. Rates depend but we pay around $18.50/hour plus OT for 45 hours a week.

[Anonymous]

You need to ask each nanny what her compensation requirements are, until you find someone you can afford.

[Anonymous]

Anonymous wrote:
You need to ask each nanny what her compensation requirements are, until you find someone you can afford.

It's not about finding someone I can afford I want to understand what the average hourly rate. 21.00 plus health insurance, vacation and sick days plus annual increases seems likes a reasonable package but when I recently offered this to one potential employee (with great references) she felt it was unreasonably low. Both of my children are in great health and there is nothing about this position that is highly unusual.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
You need to ask each nanny what her compensation requirements are, until you find someone you can afford.

It's not about finding someone I can afford I want to understand what the average hourly rate. 21.00 plus health insurance, vacation and sick days plus annual increases seems likes a reasonable package but when I recently offered this to one potential employee (with great references) she felt it was unreasonably low. Both of my children are in great health and there is nothing about this position that is highly unusual.

There is no verifiable average nanny rate. It seems to me that if you want a great nanny, you need to offer a great compensation package.

[Anonymous]

So what is a great nanny package?

[Anonymous]

I'm an MB and I think the package you describe is pretty great, OP. Did the prospective nanny have a counter-offer?

[Anonymous]

I've recently hired a nanny and was surprised by the high rates around the Tenley/Friendship Heights area. I understand the nanny gets a lot less than the rate after tax and SS, but it's still a lot more expensive than I thought. Most experienced (5+ years) nannies with great references wanted $23-$25/h gross.

[Anonymous]

Anonymous wrote:I'm an MB and I think the package you describe is pretty great, OP. Did the prospective nanny have a counter-offer?

Did you pick a job with a similar offer?

[Anonymous]

Anonymous wrote:So what is a great nanny package?

When you find a top-notch nanny who you hope to hire, share what you can offer. Then she can let you know what her preferences are.

Each nanny may have different priorities for her compensation package. Some may prefer a very high rate with fewer benefits. Others may accept a lower rate in exchange for very attractive benefits. Well-established nannies may expect a high rate AND a ton of benefits.

It all depends on who you want.

[Anonymous]

You should figure into your offer how much you expect to pay on health insurance - often you will find someone who does not need it because they have it through their spouse, in which case you can afford to offer a better rate for the same total cost.

[Anonymous]

MB here. If I was to do it all over again, I would not reimburse for health care premiums unless it was a fixed stipend instead of a percentage or full reimbursement. The premium has been steadily climbing every year and it doesn't seem to have the motivational effect a raise does. It's almost like the perk becomes invisible once given since the paycheck doesn't increase.

[Anonymous]

What kind of insurance do you all have? My nanny's insurance costs $168/month. She is 32 years old

[Anonymous]

Anonymous wrote:MB here. If I was to do it all over again, I would not reimburse for health care premiums unless it was a fixed stipend instead of a percentage or full reimbursement. The premium has been steadily climbing every year and it doesn't seem to have the motivational effect a raise does. It's almost like the perk becomes invisible once given since the paycheck doesn't increase.

totally agree with this...our nanny doesn't even notice the cost or seem to care. but it depends a lot on your nanny and how important health insurance is...for PP post - costs depend on a lot of factors, including age.