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[quote=Anonymous]Taxes:
7.5% employer part of FICA Taxes
Unemployment Insurance depends on your state, but about 2.5%
Worker's Comp -- varies; cheapest through Breedlove or your homeowner's policy

Bonuses:
Generally expected at birthdays and Christmas. Christmas bonus of 1 week's pay generally quoted, though many people do not give that much, and some people give a lot more.

Petty cash for activities, meals out with your child -- how much you allow for this is up to you.

If you are not providing a car, mileage reimbursement for all driving except her commute to and from your house (currently 54.5 cents/mile).

Some people provide extras like a health insurance stipend or continuing ed stipend.

Guaranteed hours:
You pay for 52 weeks a year, even if you do not need her.

Temp coverage:
Someone to cover nanny's vacation and sick days, or plan to spend your own PTO on those days.

HomePay comes to about $1000/yr. You can also do it yourself for free.

I always tell people to budget about 12-15% of the nanny's pay for other costs. Nanny care is expensive, and being a good employer makes it more expensive. My #1 tip for new nanny employers is to make your peace with it being expensive. Do not try to save $100 here and there by using the law to your advantage  (no OT pay on holiday weeks, for example), or cheaping out on bonuses, or questioning every dollar the nanny spends when out with your child, even if it adds up to a substantial amount of money by the end of the year.[/quote]

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