Care.com or agency?

[Anonymous]

In my area, $25 is a decent wage for one baby. With taxes, it’s around $31 an hour for me as the employer.

There are agencies in my area charging closer to $35-37 and it includes taxes. Of course they do all of the screening and have backup care providers if your nanny is sick. However the finders fee is $1,500 to $4,000.

I think I’m questioning why a nanny would go with an agency since it will take a portion of her $35-37 wage.

I’m interested in hearing what nannies think.

[Anonymous]

I think you’re confused. You negotiate a rate with the nanny, and you pay the nanny. We don’t lose anything to the agency. The fee for the agency is a completely separate fee you pay straight to the agency.

[Anonymous]

I just reread your post. If you pay the agency for the nanny’s services, including taxes, then they are employees of the company, not you. At that point, the IRS no longer classifies them as household/domestic servants, and different rules apply.

[Anonymous]

I agree you must be confused or are looking at a very strange agency.

Typically, you pay the agency a finders/placement fee and they find you candidates for your position including the pay rate you specify. Agencies don't set the rate of your job.

Also, it sounds like there may be a misunderstanding regarding taxes. If you hire a nanny at $25/hr then taxes are withheld from that amount. Domestic employer taxes are about 10% of the nanny's gross annual income so if you are paying $25hr for 40 hours per week at $52k per year, you can anticipate paying around $5k total in taxes.

[Anonymous]

PP adding we have used a few agencies and never had anyone bring up either of the issues you mention- taxes being $6hr nor an agency setting a rate higher than the current market rate.

[Anonymous]

$25 hourly for 1 baby…that used to be the rate a few years ago. What area? In Chevy Chase I’m at $30 with a newborn plus all benefits (12 days PTO, 7 sick days, all holidays paid, stipend for healthcare and workers comp.)I got hired through WHN and they charged my employer 11% of my annual salary.

[Anonymous]

OP, you are confused. You pay agency's fee and you pay nanny via payroll that you yourself set up. You do not pay agency once you picked and hired your nanny. As to your question, nannies go with agency because the agency typically gets them the highest rates.

[Anonymous]

Anonymous wrote:OP, you are confused. You pay agency's fee and you pay nanny via payroll that you yourself set up. You do not pay agency once you picked and hired your nanny. As to your question, nannies go with agency because the agency typically gets them the highest rates.

I’m not confused. This is how the agency works.

[Anonymous]

Anonymous wrote:$25 hourly for 1 baby…that used to be the rate a few years ago. What area? In Chevy Chase I’m at $30 with a newborn plus all benefits (12 days PTO, 7 sick days, all holidays paid, stipend for healthcare and workers comp.)I got hired through WHN and they charged my employer 11% of my annual salary.

Boston. It will be $30 on the books or $35-37 if I hire through an agency

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, you are confused. You pay agency's fee and you pay nanny via payroll that you yourself set up. You do not pay agency once you picked and hired your nanny. As to your question, nannies go with agency because the agency typically gets them the highest rates.

I’m not confused. This is how the agency works.

Skip it. You are contracting with the “agency”, and they have the right to send any “nanny” they want. They are not your employee, they are employed by the agency. This works well for house cleaning companies, because they send out a crew of 2 to 4 people, depending on the size of your house and the duration, but it’s not what you want for in-home childcare.

[Anonymous]

Agencies do not employ the nannies. Agencies do not set the pay rate. Agencies do not take a cut of the nanny's pay.

[Anonymous]

Just find a different agency. I am a nanny who has a job through the agency and the family only paid a one time fee, and the agency is not invloved with how I am paid at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$25 hourly for 1 baby…that used to be the rate a few years ago. What area? In Chevy Chase I’m at $30 with a newborn plus all benefits (12 days PTO, 7 sick days, all holidays paid, stipend for healthcare and workers comp.)I got hired through WHN and they charged my employer 11% of my annual salary.

Boston. It will be $30 on the books or $35-37 if I hire through an agency

The average/market rate in Boston is around $35/hr so it sounds on point to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$25 hourly for 1 baby…that used to be the rate a few years ago. What area? In Chevy Chase I’m at $30 with a newborn plus all benefits (12 days PTO, 7 sick days, all holidays paid, stipend for healthcare and workers comp.)I got hired through WHN and they charged my employer 11% of my annual salary.

Boston. It will be $30 on the books or $35-37 if I hire through an agency

I still don't understand this. Does the agency charge you a $5-7 per hour in perpetuity of the nanny's employment? Nannies are domestic employees, not employees of agencies.