Whether it’s a nanny, a household manager to oversee the details of your various properties, a private chef, or a combination of several household employees, hiring a team of experienced domestic staff will help your home function well from day to day.
Your team of household staff brings a wealth of information and expertise to the table, too. That’s why it’s very important to offer a robust wage and benefits package. This helps attract and retain the best in the industry, and ensures they want to stay employed with you for the long term.
What to Offer
Health insurance is a key component of a good benefits package, and it has become an industry standard when employing a team of domestic staff. Doing so shows that you value your staff and their health. This translates to healthier, happier employees. Here are some things to consider when putting together your healthcare offerings.
Healthcare Stipends
Many household employers choose to offer healthcare stipends for the employees. This is a designated amount provided to help cover the cost of your staff’s health insurance.
One option is to provide a qualified small employer health reimbursement arrangement (QSEHRA), which is tax-free. You can set one of these up with a payroll service to ensure all of the tax and legal details are accurate.
A stipend will greatly help your employee with the financial burden of paying for a health care plan and gives them the option to pick a plan that meets their needs well. In addition, consider adding additional funds for dental and vision coverage.
Healthcare Plans
If you have more than two people employed for your estate, it may make sense to offer a formal health insurance plan that includes a group insurance policy.
Healthcare plans ensure there is continuous coverage for your staff and can be a huge draw for professional domestic staff seeking employment. If you’re interested in offering this to your employees, talk to a professional who can help answer administrative questions and ensure it’s set up properly.
Many household employers think offering higher wages to cover health insurance will attract and retain the right people, but in fact, there is an important distinction to keep in mind. If you increase your employee’s hourly wage or annual salary to account for health insurance costs, this creates taxable income.
This means your employee will pay higher income tax, there will be an increase in payroll taxes for you as the employer, and there is no real ‘guarantee’ that the employee will use that income for health insurance. This could lead to the employees not really having coverage and if they are sick or need to take time off for health reasons, you may be left in a lurch.
In addition, remember that as an employer, you are responsible for being within legal compliance. Household employees are exactly that: employees.
They are not independent contractors and need to be paid on the books – every time. They also need to be paid directly by you, not through your business or corporation. To ensure you have all of the payroll, benefits, and tax information correct, we recommend working with a qualified payroll company that is experienced in the domestic staffing industry.
Professional domestic employees often expect health benefits as part of their compensation package. By adding these, you will attract the highest caliber candidates, reduce employee turnover, and demonstrate that you respect their commitment to your home and their career. Whether it’s a generous monthly stipend or a health care plan, implementing benefits will show that you value them.
We Can Help
Ready to expand your domestic staffing team in your home? You can rely on our nearly three decades in the staffing industry, where we have placed thousands of highly trained and specialized individuals in homes and family offices around the country.
Our team at Household Staffing recognizes that each home is different, and we work closely with you to develop a comprehensive job listing that includes all roles and responsibilities for your hire. This listing is published on our extensive network of candidate recruitment job boards, ensuring your job attracts the most experienced professionals in your area.
Upon application, we personally review each candidate before we introduce them to you and confirm that their capabilities meet or exceed your conditions and requirements. Our detailed and personalized process helps us to get to know the culture and needs of your home or office, ensuring we have a good understanding of who will fit best.
Contact us today to get started on the hiring and interview process. We look forward to working with you!
