would this arrangement work?

[Anonymous]

Hi,

I'm trying to come up with an arrangement that will work for our family but this is our first child so we don't know exactly how things work. We have a row house in DC in a family friendly neighborhood with tons of kids and the basement unit is a full apartment with a separate entrance.

If I had a live in nanny that live in the basement unit and worked with us about 40-50 hours a week and brought in another family to make it a nanny share would that work? I think we'd have the other family pay the going rate for a nanny share in our area which is about $2000-2500/month and we would pay the balance of her salary/benefits. Since we are providing the housing we'd pay less out of pocket but we would be losing our rental income (which is significant). Since the nanny has a full kitchen she would be responsible for her own food, but cable, wifi, and utilities would be included.

What should I take into consideration or what am I missing as I try to make this arrangement? Would it work?

[Anonymous]

You should get an au pair. Legally, no, you both have to set-up separate tax IDs and pay taxes on your share of the nanny for HOURS worked. I don't think you can get around this by providing housing...

[Anonymous]

I don't know if you can do that legally (see PP's post about paying by the hour), but if the rental income you bring in for the unit is roughly equivalent to a your share of a nanny share rate, then you can keep your tenant and pay into a regular, live-out nanny share, right?

[Anonymous]

So the other family would pay $2,000-$2,500 and you would pay the same, just as housing, benefits, etc.?

The other family should pay what they normally would for a share (including overtime, taxes, benefits, etc.), and it is my understanding that you will still be on the hook for at least minimum wage, plus overtime, taxes, benefits, etc.

You may be better off renting the apartment as usual and getting a live-out - the benefits to the nanny are often outweighed by the detriments of such a situation (lack of privacy, noise, blurring of hours/availability, etc.).

[Anonymous]

It would depend on the individual. Yes, you still have to pay minimum wage and ot.

[Anonymous]

No sane person wants to be a live in nanny.

[Anonymous]

Anonymous wrote:It would depend on the individual. Yes, you still have to pay minimum wage and ot.

In total. Each employer doesn't have to pay it separately. It's usually a nonissue, but I could see a nanny getting a complexly private apartment unit getting less than twice minimum wage hourly in addition, and that's totally fine.

[Anonymous]

Anonymous wrote:No sane person wants to be a live in nanny. [/quote ]

Actually, I prefer it. There are pros and cons, just as there are to live-out, and every nanny has to decide for herself.

[Anonymous]

Would this be only open to single nanny with no child or husband?

[Anonymous]

Anonymous wrote:No sane person wants to be a live in nanny.

+1 I met tons of live in nannies while I was in grad school. Every one of them complained. It seems nice in theory but rarely ever works out. There's a lot of resentment from nannies. No one wants to live with their employers.