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[quote=Anonymous][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  ([b]no OT pay on holiday weeks, for example[/b]), 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]

This makes no sense. Either I'm paying her a salary, fine, it's the same every week holiday or no -- and there's no need for an overtime rate -- or, she makes an hourly rate and we therefore pay overtime on standard weeks when she works more than 40 hours but would certainly not pay overtime on vacation/holidays. I have hourly business employees and I do not pay them an overtime rate until they have *worked* more than 40 hours in a week. Holidays do not come with overtime.[/quote]

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