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[quote=Anonymous]It's not just taxes, though. If you have a strict budget for child care, you may find yourself resentful of the extra costs of having a nanny. Just be sure you plan ahead and factor these likely costs into your planning: -- taxes and legal requirements, possibly a payroll service (10-12% above base pay) -- bonuses, birthday/holiday gifts (at least a few hundred dollars; 1 week's pay is a typical yearly bonus, though I don't give quite that) -- costs for a nanny car (fuel and upkeep) or paying mileage for a nanny to use her own car (54.5cents/mile max IRS rate currently, or some other amount negotiated with your nanny) -- petty cash to cover entrance fees and meals on the go if they go on field trips (you should cover nanny's food for restaurant meals with kiddo) -- costs of any classes you want your kid to take with the nanny[/quote]
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