Nannies - your responsibilities as an employer

Good nannies are worth their weight in gold so keep yours happy by being a great parent to work for…

Salary

How much you pay your nanny will depend on where you live and whether she’s live-in. Try asking what other parents pay their nannies, or contact the International Nanny Association for advice.

Nanny taxes

You’re obliged to pay your nanny’s Medicare, Social Security and other payroll taxes – avoiding these means you won’t be able to claim child care tax deductions and will also deny your nanny valuable government benefits. Your Social Security and Medicare contribution is 7.65 percent of your nanny’s salary, assuming she earns more than $1,400 a year (and she will!). You’re also liable for federal unemployment insurance (0.8 percent), state unemployment insurance (around 2 to 4 percent) and other state and local taxes. Altogether, expect your payout to be around 10 to 12 percent of your nanny’s gross pay.

Your nanny’s share is another 7.65% for Social Security and Medicare, plus any state and local taxes. If she balks at the idea of you deducting payroll taxes, try to explain that it will benefit her in the long term, by providing a retirement nest-egg.

Benefits

You may have heard of nannies who earn more than you do and have a limo at their disposal on their weekends off but don’t panic – they’re in the minority. Do ensure your nanny has some perks by giving her an incentive package that includes some paid vacation and paid public holidays; if she has a young child it may also make things easier for her if she can bring him to work with her. You could also consider providing a car for her to use (though keep in mind that you should make it clear if you expect her to pay her own insurance premiums) and health insurance.

Duties

Your nanny is there to take care of your child so don’t ask her to deal with household chores and don’t give friends permission to drop their children in for her to care for alongside yours if they have any childcare problems without asking her first and asking your friends to pay for her services if necessary. Remember too that she has a life outside caring for your child – for example, if she’s live-out nanny with her own family she won’t necessarily be able to do overtime if there’s a problem and you need to work late.

Contact

A good employer will ensure their nanny is always able to contact them in case of an emergency, so be sure to give her your work and cellphone numbers and your pager number if you use one. You should also leave a list of emergency contact numbers.

• International Nanny Association www.nanny.org

The information in this feature is intended for educational purposes only. If you have any concerns about your health, the health of your child or the health of someone you know, please consult with a doctor or other healthcare professional.

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Last Modified: 15/06/2007

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