How do you calculate a live in hourly rate?

[Anonymous]

We have a separate guest house for the nanny. This is all legal and on the books. We are looking at a very qualified candidate - college and preschool teaching experience. She and her elementary school age daughter would live in our guest house. The nanny would handle utilities, food, etc - just like a separate apartment.

I am just at a loss on how to calculate her hourly pay. It is for a newborn - one.

Thanks.

[Anonymous]

What would you pay her as a live-out nanny, OP?

How much would your guest house rent for on the open market?

[Anonymous]

Anonymous wrote:What would you pay her as a live-out nanny, OP?

How much would your guest house rent for on the open market?

This nanny's rate was $25 to $30. And the guest house could probably rent for $2,500 a month.

For the nanny, this puts her daughter is a great school district. For me, obviously, I have help in case of an emergency and never have to worry about nanny getting caught in traffic.

Should I calculate her weekly pay and then subtract - at a discounted rate - what I could rent the guest house for?

I don't want to lose this candidate as she seems perfect for us.

[Anonymous]

It doesn't matter the market rate of separate apt. She is, technically, available to you 24/7. If her normal rate is $25/30 an hour, I would offer $20/hr. Depending on where you live all hours over 40 could be time and one-half but even if you don't have to pay OT rates you must pay straight time for all hours worked.

Living with, or in close proximity to, employer is not necessarily a good thing.

[Anonymous]

Anonymous wrote:It doesn't matter the market rate of separate apt. She is, technically, available to you 24/7. If her normal rate is $25/30 an hour, I would offer $20/hr. Depending on where you live all hours over 40 could be time and one-half but even if you don't have to pay OT rates you must pay straight time for all hours worked.

Living with, or in close proximity to, employer is not necessarily a good thing.

Thanks! I was thinking $20 an hour. And she will never be on call on weekends - just weekdays when DH travels. I am about to be a FTM and would like to know someone knowledgeable is a stone's throw away.

[Anonymous]

Legally, if she is living in for your convenience you don't deduct anything from her wages. If she is living in for her convenience you can deduct around $135 a week if you are providing living space and 3 meals a day 7 days a week.

If her rate is $25-30, offer $25. The last thing you want, I assume, is for her to have to leave because she isn't making enough to support herself and her child.

[Anonymous]

Anonymous wrote:Legally, if she is living in for your convenience you don't deduct anything from her wages. If she is living in for her convenience you can deduct around $135 a week if you are providing living space and 3 meals a day 7 days a week.

If her rate is $25-30, offer $25. The last thing you want, I assume, is for her to have to leave because she isn't making enough to support herself and her child.

Nanny is getting free rent. Assuming this arrangement is mutually beneficial, I would start negotiating at $18 an hour.

[Anonymous]

MB here. I've never done a live-in arrangement so take my advice for what it's worth but I'd probably want to be in the $18-20/hr range. So I'd tell her what the rental value of the unit is (and be very realistic about that - keeping in mind that a $2,500 rent might be out of the question for her so perhaps not the most useful benchmark to her).

Then I'd do the math of 50 hours at $30/hr base, per month - which gets you in the neighborhood of $6,600 gross income per month. THen subtract the value of the rental and you're at $4,100 income for the month, divided by 4 weeks and by the number of hours per week that you're contracting for and you have an hourly rate.

If I'm your nanny, making the same calculations, I'm guessing I'd be willing to consider a $20/hr rate for a 50 hr position to be acceptable (giving her roughly $1,100wk gross pay), and a $22/hr rate to be quite good (if she really loves the unit, the location, working for/with you, etc...)

Keep in mind that you'll want room to give her raises and bonuses of course.

Good luck. Sounds like it could be a terrific fit for all of you - I hope it works out!

[Anonymous]

Anonymous wrote:MB here. I've never done a live-in arrangement so take my advice for what it's worth but I'd probably want to be in the $18-20/hr range. So I'd tell her what the rental value of the unit is (and be very realistic about that - keeping in mind that a $2,500 rent might be out of the question for her so perhaps not the most useful benchmark to her).

Then I'd do the math of 50 hours at $30/hr base, per month - which gets you in the neighborhood of $6,600 gross income per month. THen subtract the value of the rental and you're at $4,100 income for the month, divided by 4 weeks and by the number of hours per week that you're contracting for and you have an hourly rate.

If I'm your nanny, making the same calculations, I'm guessing I'd be willing to consider a $20/hr rate for a 50 hr position to be acceptable (giving her roughly $1,100wk gross pay), and a $22/hr rate to be quite good (if she really loves the unit, the location, working for/with you, etc...)

Keep in mind that you'll want room to give her raises and bonuses of course.

Good luck. Sounds like it could be a terrific fit for all of you - I hope it works out!

Thank you. This is exactly along the lines of what I was thinking.

[Anonymous]

If nanny is live in she shouldn't be paying utilities. That's not right.

[Anonymous]

Anonymous wrote:If nanny is live in she shouldn't be paying utilities. That's not right.

This isn't a live in situation really. OP is giving a major perk.

[Anonymous]

A live-in is a perk for OP. If nanny were actually living in an in-law suite within house, she would not be paying utilities and she should not pay utilities for living in a detached in-law suite.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Legally, if she is living in for your convenience you don't deduct anything from her wages. If she is living in for her convenience you can deduct around $135 a week if you are providing living space and 3 meals a day 7 days a week.

If her rate is $25-30, offer $25. The last thing you want, I assume, is for her to have to leave because she isn't making enough to support herself and her child.

Nanny is getting free rent. Assuming this arrangement is mutually beneficial, I would start negotiating at $18 an hour.

Nanny will be "on call" all week long. 24/5 workdays cancel out the need to pay rent, especially when nanny will be paying her own utilities and buying her own food.

The OP is having nanny live in for OP's benefit. Legally, she cannot charge nanny rent under those circumstances. And offering a nanny $18/hour so that you can call her to come work around the clock when her normal rate starts at $25/hour is truly a horror story job waiting time happen.

OP, whatever pay rate you offer, be sure that you pay for every month nuts nanny works. Being on call will be challenging if this nanny has a daughter attending elementary school. Look at your budget, and offer a fair rate that allows nanny to pay her bills and allows you to give raises and bonuses.

[Anonymous]

Above should read "waiting TO happen" and "every MINUTE THAT nanny works".

[Anonymous]

Where wlll the school aged child be after school? Is he/she old enough for the nanny to leave on his/her own in the separate living quarters? THis is a major perk for the nanny, to be able to know her child is safe a few yards away and attending school in a great school district. If the child is going to be with nanny and her charge after school, the employer should consider how this will affect the care of the baby. Either way, these are benefits for the nanny, not the employer.

Re; the on call business, it might be best if MB treats the nanny as a neighbor, not on call employee. Assume you will be a competent mom, without the need to intrude on the nanny's free time except in case of genuine emergency. And if you do call on her when your hubby is away, you will need to pay her.