Anonymous wrote:OP here, thanks everyone. How much do you end up spending annually on your nanny (incl. taxes, etc)? This is one of my big worries.
OP, you need to come up with a list of "must have" "would be nice" and "not important" qualities your perfect nanny would have. If an early childhood education degree is a
must have, you'll pay more. If it's
not important you'll likely pay less.
Then you need to determine your childcare budget. If you want to keep a nanny for several years, be sure to start with an hourly rate low enough to allow for COL and performance raises each year. Nanny taxes for employers usually add about 10% to the nanny's yearly pay, so factor that in as well.
Let's say you can afford 32K per year for nanny care. That means you MUST have a share partner. You decide to leave room for raises/bonuses, and that means your max $$ toward nanny's wages is now 26K. Your tax obligations will be about $2600, leaving about $3400 for raises and bonuses through the year.
{If your budget is less than 24K, or 18K per year to nanny, that equals an hourly rate of $6.25 per share family. $12.50/hour for a share is not going to get you really good experienced candidates.}
Say you need a nanny 50 hours a week. That means you will be paying 10 hours of OT each week, since nannies are hourly workers. Your budget is $500/week, meaning you are able to afford $9/hour or less. With a share partner whose hourly needs match yours, you can find a nanny for $16 - $18/hour.
Then you advertise the job and evaluate the candidates you are getting. Are the best candidates checking off all of your "must have" items? Then you are able to afford a nanny of the quality you want. If candidates you see are NOT adequate, that means you will need to bump the hourly rate up a bit and see if quality improves.