Annual Raise

[Anonymous]

Parents only - how much are you planning to increase your nanny's salary for 2023, and are you doing a COLA adjustment + merit increase? My agency suggested a few other ideas, which I'm curious if anyone has done:

- A cash bonus, in addition to the 2022 performance bonus, that represents the 2023 salary increase (so in lieu of a salary increase, this is untaxed and in cash)
- Monthly health insurance stipends
- Monthly retirement contributions

I'm in Bethesda, if helpful.

[Anonymous]

My favorite employer always gave me $3,000. in cash about 2 weeks before Christmas. I helped care for their one child for eight years.

[Anonymous]

We have had our nanny for five years. We give her a Christmas bonus and a $1 raise a year. This will be her last year with us.

[Anonymous]

Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

[Anonymous]

Anonymous wrote:Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

How is that shady? A cash Christmas bonus ( a gift ) is not illegal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

How is that shady? A cash Christmas bonus ( a gift ) is not illegal.

https://gtm.com/household/nanny-holiday-bonus/

[Anonymous]

Anonymous wrote:We have had our nanny for five years. We give her a Christmas bonus and a $1 raise a year. This will be her last year with us.

I hope you mean a $1/hour raise.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

How is that shady? A cash Christmas bonus ( a gift ) is not illegal.

https://gtm.com/household/nanny-holiday-bonus/

NP. I would still give it tax Free.

[Anonymous]

How much Christmas bonus are you giving them?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

How is that shady? A cash Christmas bonus ( a gift ) is not illegal.

https://gtm.com/household/nanny-holiday-bonus/

NP. I would still give it tax Free.

The OP did not specifically say that the Nanny agency suggested that she give out cash to her employee - untaxed.

I personally think it is perfectly okay to give the person who takes loving + exceptional care of your precious child a ca$h gift.

It is no different than gifting them an expensive cashmere sweater or a fine piece of jewelry.

Because I am quite sure that Nannies do not declare material gifts on their income taxes.
Nor do they w/family vacations w/their Nanny families……

[Anonymous]

Anonymous wrote:Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

Not illegal at all, it’s a bonus and not taxable. We usually give our nanny about 2k at the end of the year and Nordstrom gift card.

[Anonymous]

Anonymous wrote:We have had our nanny for five years. We give her a Christmas bonus and a $1 raise a year. This will be her last year with us.

Wow! Underwhelming generosity!

[Anonymous]

Employers only - what sort of percent raise increase are you giving this year? Is it different from usual? I sit in on a lot of HR/compensation committee meetings and see that 3-5% merit increases are standard this year across various industries but also know that doesn't track the rate of inflation. We are in our first year with our nanny so haven't had to do this before.

[Anonymous]

Anonymous wrote:Employers only - what sort of percent raise increase are you giving this year? Is it different from usual? I sit in on a lot of HR/compensation committee meetings and see that 3-5% merit increases are standard this year across various industries but also know that doesn't track the rate of inflation. We are in our first year with our nanny so haven't had to do this before.

We are doing 8%

[Anonymous]

Anonymous wrote:

Anonymous wrote:Shady that your agency would suggest you give your nanny an untaxed lump sum (which is illegal).

We are increasing this year $2/hr (from $28 to $30).

We do offer a monthly health insurance stipend which is tax free for us and our nanny.

Not illegal at all, it’s a bonus and not taxable. We usually give our nanny about 2k at the end of the year and Nordstrom gift card.

What are you talking about? Care to cite the IRS reg? It’s taxable, sorry… that’s like tax 101…