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I think given the situation that your plan to gift her $800 is just fine. If she gets angry about free money, she's a little whacky, IMO!
Anonymous wrote:Deb, you really should know better. Every IC charges appropriate fees to cover the additional expenses. They tend to make out quiet well, unless they're as uninformed as you are.
So you're arguing that an IC doesn't in fact lose 2 times as much money to SS/Med taxes? Or are you attempting to say that double the loss makes no difference since they charge more to "make up for" the extra tax hit?
Either way, you are missing the basic math facts, which would tend to make you the uninformed person here. No matter HOW MUCH you make, if you have to pay double taxes, you are losing out.
Just adding my voice to the chorus of "Fire her NOW!" If she hasn't got the basic good sense to not leave a sick child alone in a full bathtub, she needs to find other work.
Any nannies who are IC's are being taken advantage of and they and their employers are breaking the law.
An IC pays ALL of the 15.3% Social Security and medicare taxes out of his/her pocket. They have no employer to cover half of those taxes, and so they get hit with what is basically a self-employment penalty.
Let's try it this way.
A nanny who is an employee earns $100 gross. $7.65 of that goes to pay her share of SS/Med, leaving her with net earnings before other taxes of $92.35. (The employer pays the other $7.65.)
A nanny who allows herself to be labeled an IC earns $100 gross. $15.30 of that goes to pay her SS/Med taxes, leaving her with a net wage before other taxes of $84.30.
So, who exactly benefits from labeling a nanny an IC? Her employers do! THEY avoid paying $7.65 in taxes for every hundred dollars the nanny earns.
An employee who earns $50,000 a year gross loses $3825 to SS/Med a year.
An IC who earns $50,000 a year gross loses $7650 to SS/Med a year.
Be smart, and insist on being paid as an employee if you are defined as an employee!
An IC pays ALL of the 15.3% Social Security and medicare taxes out of his/her pocket. They have no employer to cover half of those taxes, and so they get hit with what is basically a self-employment penalty.
Let's try it this way.
A nanny who is an employee earns $100 gross. $7.65 of that goes to pay her share of SS/Med, leaving her with net earnings before other taxes of $92.35. (The employer pays the other $7.65.)
A nanny who allows herself to be labeled an IC earns $100 gross. $15.30 of that goes to pay her SS/Med taxes, leaving her with a net wage before other taxes of $84.30.
So, who exactly benefits from labeling a nanny an IC? Her employers do! THEY avoid paying $7.65 in taxes for every hundred dollars the nanny earns.
An employee who earns $50,000 a year gross loses $3825 to SS/Med a year.
An IC who earns $50,000 a year gross loses $7650 to SS/Med a year.
Be smart, and insist on being paid as an employee if you are defined as an employee!
OP, feel free to private message me here. Link is on the left of the page when using PC or laptop, not sure where it is on a phone/tablet.
If you search the forums you'll find a lot of info. I'd do some reading first, then come back with more specific questions. Good luck!
I agree with the above posters. If you were to do a share, you're looking at $28+ per hour, or $14+ per family. And I would say that's for a nanny with less than 5 years experience. That's not any real savings, IMO, if you can find a nanny for one family for $15 - 16/hour.
I would seriously consider what 12:21 posted, if you want or need the ability to "share" in emergencies or want to have a tag team situation occasionally
I would seriously consider what 12:21 posted, if you want or need the ability to "share" in emergencies or want to have a tag team situation occasionally
Anonymous wrote:Some professional nannies are in fact, legally independant contractors. Most obviously aren't, and certainly not this one.
Really? How does that work exactly?
Anonymous wrote:nannydebsays wrote:Anonymous wrote:We have two children and are considering a third. I've never had a nanny before, and I would need to hire one if we have a third child.
I've read posts about different compensation packages, and I've seen posts about nannies who are educated commanding a larger salary. How much are we talking about, fully loaded (taxes, health care)? $60K, $70K, $80K, or more?
How old are your children, OP, and how old might they be if you have a third child?
OP here. The kids are 6 and 1. We hope to have a third in the next year or two, in which case they would possibly be 8, 3, and an infant.
The Arlington poster, for example, sounds as though she has a great arrangement. I would be happy with a situation in which I felt my kids were well-cared for, ideally with enriching activities and a nanny who engaged them. I'm sorry to dig up a tired trope, but I hate seeing nannies or any caregiver ignoring the kids at the park while the caregiver is on the phone. I would need a driver and of course someone who has proper documentation to work. We wouldn't need more than 50 hours per week.
What I'm getting at is that I want a great nanny (who doesn't), and DH and I would be willing to pay for someone who does an outstanding job. I've seen posts - I should probably dig up the threads - in which parents or nannies have said that nannies who are highly qualified career nannies can command a high salary. I'm hoping to attract someone who is energetic and enthusiastic about nannying, and we can afford to pay more for a nanny who brings a lot to the table. I'm wondering how much we should expect to pay
While I can tell you what "salary" (aka guaranteed weekly rate) I'd ask for, I don't know what you can specifically expect to pay. I have 20+ years of experience, have cared for infants to 10 year olds, and I'd be seeking $20+/hour plus OT, or $1100+ per week. If, upon meeting your family, I found out elements were in play that would make the job more difficult, I'd raise my starting point for negotiations.
I'd suggest taking a few steps to clarify the following:
1) What is your annual childcare budget? How much can you afford to pay a nanny, pay your share of taxes and a nanny tax company, and how much time and/or money can you devote to your search?
2) What is the job description? Do you want a nanny who can multi-task efficiently when she has all 3 kids, and can also be very focused on just the infant when they are 1:1? Will nanny need to help with homework, will she be responsible for carpooling, how much (if any) purchasing authority will she have regarding the kids needs? Will she be expected to run errands, grocery shop, do any household tasks related to the kids like their laundry (Kid related tasks are generally the nanny's responsibility.) What benefits will you offer beyond the standard 15 days PTO? What makes your job stand out from the rest?
3) How would you describe your ideal nanny? Do you want a motivated self-starter who can step in and take charge easily? Do you want someone who will look to you for guidance, or someone that you can trust to make minor decisions? Old? Young? In-between? College educated?
Once you've got those things set down on paper, you'll have a firm idea of your budget, your wants, and your needs, and you'll be better prepared to start looking.
Also, unless you want to avoid paying any agency fees and feel comfortable doing reference and background checks on your own, I'd consider using agencies for your search. Reputable agencies will be able to send you candidates that match your requirements. Before you "hire" an agency, ask for referrals and ask around in your area to see what people say about that agency.
Good luck!
OP, I agree that unless it's impossible to afford to pay FT wages while you are on maternity leave, you need to hire someone FT and pay them for FT hours from the start.
Is this your first baby? If so, you'll probably want to find someone who would be willing to start out being available for some overnight duty while you and baby get used to each other. Then when you do start working again, you'll need additional time to relax, and having that FT help available will let you do just that when necessary.
If this is your second baby, you may want/need more help with your oldest than you think you will, and having someone available for FT hours will be a huge blessing, allowing you to have double coverage and spend some extra time with your older kid.
Either way, nothing always goes exactly as planned when it comes to babies, and unless you have family in the area that can potentially step in to cover your needs a lot of the time, IMO hiring someone FT from the start is the way to go.
Is this your first baby? If so, you'll probably want to find someone who would be willing to start out being available for some overnight duty while you and baby get used to each other. Then when you do start working again, you'll need additional time to relax, and having that FT help available will let you do just that when necessary.
If this is your second baby, you may want/need more help with your oldest than you think you will, and having someone available for FT hours will be a huge blessing, allowing you to have double coverage and spend some extra time with your older kid.
Either way, nothing always goes exactly as planned when it comes to babies, and unless you have family in the area that can potentially step in to cover your needs a lot of the time, IMO hiring someone FT from the start is the way to go.
Anonymous wrote:We have two children and are considering a third. I've never had a nanny before, and I would need to hire one if we have a third child.
I've read posts about different compensation packages, and I've seen posts about nannies who are educated commanding a larger salary. How much are we talking about, fully loaded (taxes, health care)? $60K, $70K, $80K, or more?
How old are your children, OP, and how old might they be if you have a third child?
If you know the parents, let them know exactly what you saw without any additional commentary.
If you don't know the parents, there's not much you can do, unless the adult was actually being physically abusive, in which case you should have called the police.
If you don't know the parents, there's not much you can do, unless the adult was actually being physically abusive, in which case you should have called the police.
Anonymous wrote:Thanks for your advice everyone, I really appreciate the feedback. I brought it up very directly when I got home yesterday and she admited that yes she did watch TV sometimes. I reiterated the rule that there is to be no TV unless my daughter is napping. I didn't get into chastising or questioning her beyond that, but firmly repeated the rule and the reason for the rule (my daughter's well being and safety). This is her first full time nanny position, so I am thinking she might not understand the importance and gravity of her job. I'm watching much more closely than I usually do today and she has been great, so I am left thoroughly confused. Do you think this is a judgment/character issue that can be overcome? I am nervous to send her out into the world with my daughter where there are no cameras if she has poor judgment - what if she makes other bad judgment calls or breaks other rules and leaves her in the car to run into the store or something? I know I'm catastrophizing into the future, but I don't like feeling such doubt about anyone who watches her.
Does anyone have advice for me about how to work with her to understand the importance of her job without making her feel belittled? I want her to understand that she isn't just a babysitter, but one of the most integral caretakers in my daughter's life.
I see two issues here:
First, you have hired a nanny without any formal nanny experience. That means you've hired a babysitter. If you want your sitter to raise her game you will need to be a very hands-on manager to help her become the nanny you want her to be. That means you need to up your game as well - read about child development, if you aren't already conversant in that area. Then specifically TELL nanny activities you want her to do with your child. Don't suggest, TELL - it can be done nicely, and after a while you can ask what sort of activities SHE thinks would be good, based on what she's been doing. You are going to need to manage and coach her along the way to help her actually become more than a sitter. It can be done, but it requires you to be active, rather than passive. You also need to be free with praise and thanks when you catch her going above and beyond. First time nannies can be awesome if you give them the attention they need.
Second, you are probably ascribing too much importance to the issue of her watching TV. A decision to watch TV is not a direct predictor of a decision to drive with baby on her lap instead of in her carseat. As a FTM, I get why you feel that way, but I think she may have just figured she watches TV when babysitting, why not do it at your home too. Of course, since you have the cameras, you can keep an eye on things and see if this was an anomaly or if she actually does seem to have poor judgement or an inability to respond to your directions.
Good luck!
Yeah, you at least need to be paid by the quarter- or half-hour every time you have to get up at night, and if you do not actually "live-in" 24/7/365, you are entitled to OT, as far as I know.
You need to contact a nanny tax service, and ask them to go through the issue with you. I bet most of them would have documentation you can show your boss so that you get paid properly.
You need to contact a nanny tax service, and ask them to go through the issue with you. I bet most of them would have documentation you can show your boss so that you get paid properly.
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