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Estimating Nanny Expenses

Are you looking to hire a nanny in the new year? You might know what type of qualities you are looking for in a nanny, but when it comes to outlining the budget part of their employment, things can get a little tricky. That’s because there are other costs besides your nanny’s wage that also need to be factored in. Here are some things to consider.

Employer taxes: these can be reduced or even eliminated completely with things like a dependent care FSA or with the child tax credits.

Worker’s comp: this helps cover medical costs and lost wages if your nanny is hurt or injured on the job. Depending on the state you liv in, coverage may be required.

Overtime pay: if you need your nanny to work more than 40 hours a week, you are required to pay overtime.

Benefits: healthcare, paid time off, and other benefits help attract and retain the right nanny. Do your part to offer your nanny a living wage, in addition to good benefits.

Paid time off: your nanny should have adequate vacation time built into her employment. Usually, this is one to two weeks a year, in addition to paid federal holidays.

Back-up childcare: if your nanny takes time off or is sick, you will need to factor in someone else to take care of the kids. This is an expense that you should plan for in the event your nanny needs to be away for any length of time.

Not sure where to begin when it comes to hiring a nanny? Our team of experts at Household Staffing will work with you to find an employee that fits your specific requirements and has the experience you’re looking for. We also recognize that hiring a nanny can feel overwhelming when it comes to filing payroll and taxes. That’s why we partner with household payroll companies to help.

Contact us today to get the hiring process started. We look forward to finding you the perfect match for your family.

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