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[quote=Anonymous]We have given our nanny 4-7% rate raises for 2 years each now, and we pay $5/week cash for driving the toddler 5-10 miles week to nearby classes, the library, etc. as she and the toddler like to get out of the house.

In January she asked for a cash pay component of her pay. We thought about it, didn't ask questions and agreed. This was ~25% of her weekly comp and effectively another raise because it is unlikely to be taxed.

Today she asked for the IRS mileage rate "because summer is coming up and we will want to do lots of things each day." That's fun but we need a system that is fair, she named some places and they will be $5-10 a pop each day to drive to at $0.56/mile. At those numbers it is essentially another $50/week pay and now we will have to re-examine our budget and raise assumptions for next year.

At the same time, we've noticed they are frequently late for class, some trips are for her to have lunch with her friends/adult children, and other items we are usually lax with (coming 5-10 mins late, time off for appts, skipping downtown class fieldtrips, sometimes providing advances, not following diet or nap times (mainly do to driving or playdates, ironically), etc).  We will have to google map the classes for mileage and other boondoggles to the mall, or the zoo, or far away parks or playdates. And approve where they go, I frankly don't think lunch at the mall is worth $10 in extra pay, that is more than my lunch!

Any better systems out there?  Could we pay her car payment instead of the cash component, or maybe her monthly healthcare premiums? [/quote]

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