Family with FT nanny doing share with another family PT?

[Anonymous]

We've been approached by another family about sharing our nanny 3 days/week. Has anyone else done this? Doing some initial number crunching, it doesn't seem to be a huge financial benefit for us, the FT family. Should we make the PT family pay more per hour on the days we share?

[Anonymous]

Does your nanny want to add another family/charge for 3 days a week? Not all nannies want to deal with the hassle of two sets of parents.

If the answer to that is yes, then I think it's reasonable that the part-time family pays a higher rate than the FT family; the FT family is basically taking on the guaranteed salary portion of nanny compensation, plus you did the work of finding a good nanny.

[Anonymous]

Anonymous wrote:Does your nanny want to add another family/charge for 3 days a week? Not all nannies want to deal with the hassle of two sets of parents.

If the answer to that is yes, then I think it's reasonable that the part-time family pays a higher rate than the FT family; the FT family is basically taking on the guaranteed salary portion of nanny compensation, plus you did the work of finding a good nanny.

Thanks PP. I haven't approached our nanny about it yet because I want to make sure such an arrangement would even make sense before talking to her.

THe thing that I'm really stumped on is how would we handle taxes/withholding for such a situation? I think the salary piece we could figure out, but then how do I calculate out each family's specific share of withholding for situations like:
1. FT family goes out of town so PT family pays more during that time to have nanny to themselves
2. FT family has 2 separate pay rates for nanny, one rate for FT days and a different rate for PT days

It just seems crazy complicated!!! If anyone has insight on how such a situation could be manageable I'm all ears!

[Anonymous]

most part-time fams don't pay taxes.

[Anonymous]

Anonymous wrote:most part-time fams don't pay taxes.

Ok that makes sense. So help me work through this situation and how payment would work:

FT family pays nanny $15/hr, with time 1/2 for over 40 hours. FT family continues to remit taxes etc, just as we've done all along, for that $15/hr amount.
PT family will share 3 days week. We agree nanny will be paid $22/hr for those days.

How would PT family remit payment to nanny? Obviously they can't just pay her $7/hr ($22-normal $15 rate). Would they pay her $7/hr, and then pay us separately some agreed upon amount?

[Anonymous]

Anonymous wrote:

Anonymous wrote:most part-time fams don't pay taxes.

Ok that makes sense. So help me work through this situation and how payment would work:

FT family pays nanny $15/hr, with time 1/2 for over 40 hours. FT family continues to remit taxes etc, just as we've done all along, for that $15/hr amount.
PT family will share 3 days week. We agree nanny will be paid $22/hr for those days.

How would PT family remit payment to nanny? Obviously they can't just pay her $7/hr ($22-normal $15 rate). Would they pay her $7/hr, and then pay us separately some agreed upon amount?

This is so tricky! PT family should pay more.

[Anonymous]

I would keep your rates the same with nanny and have the other family pay $10 an hour to nanny.

[Anonymous]

Anonymous wrote:I would keep your rates the same with nanny and have the other family pay $10 an hour to nanny.

I think $10 sounds reasonable. But then, what is in it for us, the FT family, if we are still paying the same rate? I would think this other family would have to compensate us somehow. Us paying $15/hr (including withholding etc which gets us closer to $18) and them paying $10 just doesn't make sense. So they'd have to be separately compensating us somehow, correct??

[Anonymous]

Each pay the nanny $10 or $11 on share days. That's how I did it When my nanny charge had someone join for the day

[Anonymous]

Both families pay $11 each on the days they share, and both guarantee these hours.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Does your nanny want to add another family/charge for 3 days a week? Not all nannies want to deal with the hassle of two sets of parents.

If the answer to that is yes, then I think it's reasonable that the part-time family pays a higher rate than the FT family; the FT family is basically taking on the guaranteed salary portion of nanny compensation, plus you did the work of finding a good nanny.

Thanks PP. I haven't approached our nanny about it yet because I want to make sure such an arrangement would even make sense before talking to her.

THe thing that I'm really stumped on is how would we handle taxes/withholding for such a situation? I think the salary piece we could figure out, but then how do I calculate out each family's specific share of withholding for situations like:
1. FT family goes out of town so PT family pays more during that time to have nanny to themselves
2. FT family has 2 separate pay rates for nanny, one rate for FT days and a different rate for PT days

It just seems crazy complicated!!! If anyone has insight on how such a situation could be manageable I'm all ears!

No one ever pays more for "having the nanny to themselves" on share days. You guarantee the hours, and everyone keeps paying whether they are there or not, same as you do for your full time hours.

And yes, taxes are required.

So you pay $16/hr for two days, and $11/hr for three days, and you guarantee that rate (the rates are hypothetical; I don't know what you're paying) regardless of whether you're there or not.

Family B signs their own contract with the nanny for $11/hr on the three days, and also guarantees those hours. You are each responsible for your portion of the taxes.

You will want to discuss with her what will happen if you decide to eliminate the share. Do you immediately go back to $16/hr for all hours, or is she going to expect you to find another share family?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does your nanny want to add another family/charge for 3 days a week? Not all nannies want to deal with the hassle of two sets of parents.

If the answer to that is yes, then I think it's reasonable that the part-time family pays a higher rate than the FT family; the FT family is basically taking on the guaranteed salary portion of nanny compensation, plus you did the work of finding a good nanny.

Thanks PP. I haven't approached our nanny about it yet because I want to make sure such an arrangement would even make sense before talking to her.

THe thing that I'm really stumped on is how would we handle taxes/withholding for such a situation? I think the salary piece we could figure out, but then how do I calculate out each family's specific share of withholding for situations like:
1. FT family goes out of town so PT family pays more during that time to have nanny to themselves
2. FT family has 2 separate pay rates for nanny, one rate for FT days and a different rate for PT days

It just seems crazy complicated!!! If anyone has insight on how such a situation could be manageable I'm all ears!

No one ever pays more for "having the nanny to themselves" on share days. You guarantee the hours, and everyone keeps paying whether they are there or not, same as you do for your full time hours.

And yes, taxes are required.

So you pay $16/hr for two days, and $11/hr for three days, and you guarantee that rate (the rates are hypothetical; I don't know what you're paying) regardless of whether you're there or not.

Family B signs their own contract with the nanny for $11/hr on the three days, and also guarantees those hours. You are each responsible for your portion of the taxes.

You will want to discuss with her what will happen if you decide to eliminate the share. Do you immediately go back to $16/hr for all hours, or is she going to expect you to find another share family?

Ok I see now that the folly in my thinking was around the guaranteed hours.

So we, as the FT family, would have 2 pay rates whereas the PT family would have just one. It's an extra step for me the run the payroll that way but shouldn't be too bad.

[Anonymous]

Two additional points to keep in mind:
1) as share employers, you are joint employers, so, no matter how you set up the pay structure, you are both legally responsible if the other party flakes out.

2) don't forget all your impacted benefits. How does vacation work? What about a sick kid? Are you willing to give up the nanny if your child is sick? What about OT? You need to be clear how it works if the other family runs the nanny into more OT even if they only use 30 hrs:wk.

[Anonymous]

Anonymous wrote:

Anonymous wrote:most part-time fams don't pay taxes.

Ok that makes sense. So help me work through this situation and how payment would work:

FT family pays nanny $15/hr, with time 1/2 for over 40 hours. FT family continues to remit taxes etc, just as we've done all along, for that $15/hr amount.
PT family will share 3 days week. We agree nanny will be paid $22/hr for those days.

How would PT family remit payment to nanny? Obviously they can't just pay her $7/hr ($22-normal $15 rate). Would they pay her $7/hr, and then pay us separately some agreed upon amount?

The PT family needs to pay taxes. They would pay Nanny directly, and withhold taxes from the $11/hour they pay her.

And as far as all the crazy math for vacations, the simple way to handle that is to offer guaranteed hours, meaning both families pay Nanny her contracted rate 52 weeks/year. I can break the math down when I am using my PC.

Your concern about whether your savings will be enough to bring in a share partner will be matched by your nanny's concern that the additional income will not be sufficient for the additional work. Her income will increase by $210 gross/week. Your cost will decrease by $120/week.

That doesn't seem worth the headache for you or your Nanny.

[Anonymous]

$200x50 = $10,000. That might be worth it to me if it were a good match.