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[quote=Anonymous]In addition to paying the nanny, you also need to budget in unemployment insurance, worker’s compensation insurance and the federal portion of FICA (7.5% of salary).  You’ll likely either want to run your own background check and driving record search.

Having a nanny is amazing in terms of having to not schlepp kids around and having less chores to do (cooking for kids, laundry for kids, etc).  However, it comes at the cost of being an employer.  You’ll need to pay a payroll company or do all paperwork (I-9, W-2, W-4, paystubs, etc.) yourself.

If your 2yo has been in daycare, it’s going to be a huge adjustment to stay home with an infant.  I’d suggest starting the nanny 2-3 months prior to the birth.  Have her on call as your due date approaches, and she can stay while you’re in the hospital.  Then, having her there while you handle the nanny during maternity leave will give your 2yo an easier adjustment to having a sibling.

If your work is intense enough that you can’t have the baby stay with you while she goes and does things with other kids, look for a nanny who has local nanny friends who can host play dates and a playgroup at your house.  Alternatively, you could have the nanny wear the baby and limit activities with other kids out if the house to those that require supervision rather than interaction (skip music together, my gym is a good choice).

When considering your rate, think about what kind of nanny you want.  Do you want an educator type nanny?  Or someone who’s willing to do more housework during naptime?  How much education and experience do you want?

Have you thought through the hours you really need?  Is there any way to stagger start end times for you and your husband?  The pay difference from 40 hours (8-5 or 9-6) is far different from 7.30-6.30 (55 hours) or even 7-6 (50 hours).

Pay (40 hours, $20/hour)=40*20=$800 per week
Pay (50 hours, $20/hour)=40*20+10*20*1.5=800+300=$1100 per week
Pay (55 hours, $20/hour)=40*20+15*20*1.5=800+450=$1250 per week

Pay (40 hours, $25/hour)=40*25=$1000 per week
Pay (50 hours, $25/hour)=40*25+10*25*1.5=1000+375=$1375 per week
Pay (55 hours, $25/hour)=40*25+15*25*1.5=1000+562.50=$1562.50 per week

Pay (40 hours, $30/hour)=40*30=$1200 per week
Pay (50 hours, $30/hour)=40*30+10*30*1.5=1200+450=$1650 per week
Pay (55 hours, $30/hour)=40*30+15*30*1.5=1200+675=$1875 per week[/quote]

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