Question about taxes

[Anonymous]

If I'm looking to pay a maximum of $20/hr in a nanny share with two children, how much should I actually offer per hour after I consider employer portions of payroll taxes, etc. Sorry, I know this is a dumb question, but I can't figure it out. In other words, how much less than $20/hr should I offer to keep my max amount at $20/hr? [This is just an example amount, I'm not necessarily stuck on the $20/hr rate.)

[Anonymous]

Anonymous wrote:If I'm looking to pay a maximum of $20/hr in a nanny share with two children, how much should I actually offer per hour after I consider employer portions of payroll taxes, etc. Sorry, I know this is a dumb question, but I can't figure it out. In other words, how much less than $20/hr should I offer to keep my max amount at $20/hr? [This is just an example amount, I'm not necessarily stuck on the $20/hr rate.)

Someone just asked this question. You will pay about 10-12% over the base rate to cover FICA taxes, unemployment insurance, and workman's comp.

[Anonymous]

It's not just taxes, though. If you have a strict budget for child care, you may find yourself resentful of the extra costs of having a nanny. Just be sure you plan ahead and factor these likely costs into your planning:

-- taxes and legal requirements, possibly a payroll service (10-12% above base pay)
-- bonuses, birthday/holiday gifts (at least a few hundred dollars; 1 week's pay is a typical yearly bonus, though I don't give quite that)
-- costs for a nanny car (fuel and upkeep) or paying mileage for a nanny to use her own car (54.5cents/mile max IRS rate currently, or some other amount negotiated with your nanny)
-- petty cash to cover entrance fees and meals on the go if they go on field trips (you should cover nanny's food for restaurant meals with kiddo)
-- costs of any classes you want your kid to take with the nanny