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Reply to "Nanny Salary and True Cost to Parents"
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[quote=Anonymous][quote=Anonymous]Recently there are a lot negative comments on nanny ads shaming parents who don't post $30 or more nanny hourly wages. It is unfortunate that this is discouraging parents to use this platform and the nanny section as its intended, which is bring families and nannies together. First, the discussion about nanny "average" salaries. It's clear that based on publicly available data the current average nanny salary in the DC area is about $20-$25. Now wether this is a reasonable salary or not, is an entirely different discussion. Everyone in this economy is struggling, and it's effecting everyone. The reason this is the price is based on two factors. One the demand for nannies are down after the pandemic as kids are back at school so there are more nannies available out there with less job offerings. And Second which is more important is the "True" cost of a nanny to the parents. For a parent to work and pay for a nanny's salary at $35, they would have to earn $55.2 just to offset what they pay a nanny! Thanks for putting this together. Having a professional Nanny and Family Assistant is a luxe, for sure and not all families can afford the cost of having a well seasoned caregiver. As an experienced Nanny that has been placed with agencies, I would NOT be taking anything less than $35 hourly as the cost of living in the DMV is very high. You can hire a nanny through care.com or DCUM and perhaps pay less. I assure you if nanny finds other position with higher paid, they’d quit. Who wouldn’t?! Also, most parents/families that hired through an agency are high earners with demanding jobs and or wealthy/trust fund folks(lots of them in the area.) If you can’t afford to offer a decent salary to the caregiver/nanny, then enroll your child in a Daycare setting. That's because a parent has to earn an income, pay their federal and state taxes, then pay the nanny's wages and pay payroll tax for the nanny. Even though the parent is an employer, they are not allowed to deduct the nanny's salary as an expense on their tax returns as a company does, and they get doubled taxed. So a nanny to make $35/hr, which makes nanny's salary at $73k, that means the parent has to earn $115k just to offset that nanny's salary!! That is if the parent keeps $0 of their earned income and pays ALL of their paycheck to the nanny. So unless the average wages increase, you will not see this price increase. Many parents face this difficult calculation when they have kids. What is the break even number? and is it worth it to go back to work or is it better for one parent to stay home? here are the break even numbers: Nanny wages of $20 costs parents earned income of $28.5 or $60k full time salary $25 costs $37.3/hr or $78k Salary $30 costs $46.2 or $96k salary $35 costs $55.2 or $115k salary Even at $20/hr, the parent has to earn $60k a year just to break even! So the true cost of a nanny earning $20 to the parent is a salary of $60k. Based on this data, $20-$25 is where a nanny's salary would be on average until all incomes significantly increase and tax brackets change. Or if nanny's wages were to become tax deductible, then the true cost of hiring a nanny would be their wages and payroll taxes, which would allow more families to hire a nanny. There was a period during the pandemic when there was a shortage of nannies and everyone needed a nanny in the area because kids were home and the demand might have increased the wages short term. But life is back to normal, and the low number of ads on this site indicates that the offering of a job on itself is valuable both to families and the potential nannies. Please don't clutter the ads with negative income related replies. Allow parents to feel safe to post ads, as surely there are many wonderful nannies who appreciate and need the opportunity. [/quote][/quote]
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