Looking to hire a nanny - have some questions. Please help!

[Anonymous]

All, we are considering seriously hiring a nanny for our second baby. Our daughter has been at a wonderful daycare but will start preschool in the fall so we want to simplify our lives. Would love your help with some questions - thanks in advance!
1. What is the going rate for a nanny in the MD region? I’ve seen a big range so was hoping for a realistic figure that we can budget around. We want 7.30-8 am through 6- 6.30pm 5 days a week. While the nanny will primarily watch the baby, we want her to pick up our 2 year old daughter from daycare (~0.6 miles away so walkable) and watch her till the end of the day. How much extra would this be?
2. I work from home and while I like the idea that I will be around and can sometimes nurse instead of pump, would it be too disruptive? I do have intense work days.
3.Those who went from daycare to nanny - did it really simplify your lives? Our main goal is the additional help in managing children-related chores and managing the commute so the simplification/ease is key to justify the expense.

Thanks for your thoughts!

[Anonymous]

The “going rate” is whatever you can afford. Look at your budget and figure out what you are comfortable paying. Depending on the nanny the amount can range from $15-$30/hr plus overtime.

[Anonymous]

The going rate is what the nanny charges just like the going rate for groceries is what the grocery store charges. If you can't afford Whole Food prices then you shop at Food Lion!

[Anonymous]

There truly is no “going rate”. You pay for experience and education with a nanny.

OMG, yes - life is easier with a good nanny.

I also work from home and our nanny worked with me nursing during the day. The only issue we encountered came later when DS was 14 months and wanted me when I was working - it wasn’t a good set up as my office was in the dining room! Moving to a new place with a separate office for me and a door that closed solved that.

Our wonderful nanny walks miles with our son but also drives when necessary.

[Anonymous]

First, the other posters are correct - there is no going rate. Experience, education, on-the-books vs cash, skills, all make a difference.

Second, you’ll want to shorten the nanny’s hours or you’re going to have to pay overtime. Keep her hours at 40 a week.

Third, yes. Having a nanny is a godsend. Our nanny does all child-related chores like kids laundry, cooking for kids and clean up for kids. She also covers sick days and school holidays for our older child which is so great after having suffered through daycare.

I work out of the home so I can’t address your other concern.

[Anonymous]

Run the numbers for $20 an hour for just the baby. More for when the nanny has both kids. Are you ok interruptions the baby's nap so that she can pick up the oldest?
So 10 hrs a day with 1.5x rate for over time is $1100 a week. And that's not counting your employer taxes which is another %7 on top of that.
Working from home is ok until the baby is about one and then they start wanting you and it's harder. Also harder to find a nanny who is ok with the mom at home.

[Anonymous]

In addition to paying the nanny, you also need to budget in unemployment insurance, worker’s compensation insurance and the federal portion of FICA (7.5% of salary). You’ll likely either want to run your own background check and driving record search.

Having a nanny is amazing in terms of having to not schlepp kids around and having less chores to do (cooking for kids, laundry for kids, etc). However, it comes at the cost of being an employer. You’ll need to pay a payroll company or do all paperwork (I-9, W-2, W-4, paystubs, etc.) yourself.

If your 2yo has been in daycare, it’s going to be a huge adjustment to stay home with an infant. I’d suggest starting the nanny 2-3 months prior to the birth. Have her on call as your due date approaches, and she can stay while you’re in the hospital. Then, having her there while you handle the nanny during maternity leave will give your 2yo an easier adjustment to having a sibling.

If your work is intense enough that you can’t have the baby stay with you while she goes and does things with other kids, look for a nanny who has local nanny friends who can host play dates and a playgroup at your house. Alternatively, you could have the nanny wear the baby and limit activities with other kids out if the house to those that require supervision rather than interaction (skip music together, my gym is a good choice).

When considering your rate, think about what kind of nanny you want. Do you want an educator type nanny? Or someone who’s willing to do more housework during naptime? How much education and experience do you want?

Have you thought through the hours you really need? Is there any way to stagger start end times for you and your husband? The pay difference from 40 hours (8-5 or 9-6) is far different from 7.30-6.30 (55 hours) or even 7-6 (50 hours).

Pay (40 hours, $20/hour)=40*20=$800 per week
Pay (50 hours, $20/hour)=40*20+10*20*1.5=800+300=$1100 per week
Pay (55 hours, $20/hour)=40*20+15*20*1.5=800+450=$1250 per week

Pay (40 hours, $25/hour)=40*25=$1000 per week
Pay (50 hours, $25/hour)=40*25+10*25*1.5=1000+375=$1375 per week
Pay (55 hours, $25/hour)=40*25+15*25*1.5=1000+562.50=$1562.50 per week

Pay (40 hours, $30/hour)=40*30=$1200 per week
Pay (50 hours, $30/hour)=40*30+10*30*1.5=1200+450=$1650 per week
Pay (55 hours, $30/hour)=40*30+15*30*1.5=1200+675=$1875 per week

[Anonymous]

Bump. Can anyone comment on the employer side of taxes as a percentage of the nanny weekly salary? Trying to estimate the full cost so that we know what we can afford.

[Anonymous]

Anonymous wrote:Bump. Can anyone comment on the employer side of taxes as a percentage of the nanny weekly salary? Trying to estimate the full cost so that we know what we can afford.

You can safely estimate 10% of nanny's gross annual income

[Anonymous]

Anonymous wrote:Bump. Can anyone comment on the employer side of taxes as a percentage of the nanny weekly salary? Trying to estimate the full cost so that we know what we can afford.

Employers match 7.5% for FICA. Then you have unemployment insurance, worker’s compensation (separate or a rider on your house insurance), adding her to your car insurance if she’s driving your vehicle, and payroll if you choose a company (not insurance, but it’s a cost). Weekly percentage is well over 10% of the nanny’s pay, if you’re doing car insurance and a payroll company.