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[quote=Anonymous][quote=nannydebsays][quote=Anonymous]We have 2 kids in daycare but are considering moving to a nanny for convenience reasons. We would definitely need someone for at least 50 hours/week. I would like to pay a slightly over-market salary in exchange for not having to worry about tracking hours and figuring out overtime, and we would commit to not exceeding a certain number of hours per week, say, 60. We are not trying to cheap out here, quite the contrary. I am interested in paying more to not have to nickel and dime individual hours. Assuming I can get the numbers right to make this appealing for a nanny, do you think one would go for it? I've never heard of it being done this way, but I would think a nanny might appreciate this too. After all, there will be weeks when we're below 50-60 hrs and we would pay vacation of course. 
 
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To avoid any appearance of illegal pay methods if you are ever taken to the state wage and labor board, you MUST pay nanny an hourly wage.  It is, however, quite easy to figure out how to do that.

-Determine how many hours you want nanny to keep open for your use each week. ****Let's say 60, so that you have the time cushion you want.

-Determine your budget for childcare. ****Let's say $75,000/year

-Figure out the weekly cost of your budget. ****$1440/week

-Take about 15% off the top of that for your share of employment taxes and fees for a nanny tax company. ****1440 - 216 = 1224/week

-Divide the weekly gross wage by your total number of needed hours. ****40 at regular rate + 20 at time-and-a-half = 70 hours, divided into 1224 = $17.48/hour, $26.22 OT rate

-Guarantee nanny pay for 60 hours a week 52 weeks a year.

Write up the wages in your contract as: "Nanny will work from 7 am - 7 pm Monday - Friday, for a total of 60 hours worked per week. Nanny will earn $17.48 for the first 40 hours of work, and $26.22 for the 20 hours of overtime. Nanny is guaranteed her full weekly gross wages of $1223.60 52 weeks of the year as long as she is available to work outside of the 15 days of PTO nanny is given for each employment year."

And OP, the easiest way to keep nanny happy is to let her off early on occasion, especially if she is working a 60 hour/week schedule. So if you are home and settled in at 6:30, thank nanny and tell her to have a good night.

This is incredibly helpful. This is the structure I was contemplating, just set forth as hourly. I honestly didn't know paying hourly was required legally, I just thought that's what most people did.

And thanks to the other PPs. I'm learning a lot!

Oh, and if your childcare budget isn't getting you the quality of nanny candidates you want, push the wage offered up and see if you attract better people. As a disclaimer, even not knowing where you live and what sort of candidate you seek, I would guess $1200+/week will get you some great candidates.[/quote][/quote]

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