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How to hire a nanny and determine your nanny's pay rate.



How to hire a nanny and determine your nanny’s pay rate. Finding a good family nanny sounds, at first, like a long and complicated task, especially when trying to manage your family budget.   One of the most cost effective ways to go about this is by accessing a large database of nannies for hire that offer their services as family helpers can significantly help you screen and choose the best nanny for you. Services such as online nanny placement agencies considered as one of the simplest and efficient services there is. Thinking of searching for a nanny for your kids and you don’t know where to start? Take a few minutes to read the following article for some helpful tips, including how to figure your nanny’s pay rate.

Searching nannies for hire – where to start? Working with an experienced placement agency is critical if you wish to successfully accomplish the seeking and hiring process. If you are looking for a nanny in your hometown then start by using a search engine to locate a relevant online agency. For example – if you live in Los Angeles, then search the following terms – “Online nannies agency in Los Angeles.”  Find a service you feel comfortable working with and start searching for your super nanny.  You’ll find your search and hiring process will be much more enjoyable if you get some help, and use professional advise.  Additional benefits to hiring through a nanny agency are nanny background checks, additional screening, and nanny resume preview tools online.

You may not have the financial resources to hire a nanny, but if you can be aware of your budget in other spending areas, then maybe it could be a possibility.   Some families find that skipping in other areas to afford their nannies are definitely worth the spending discipline.  Nannies not only help with the daily child care duties, but they also become very helpful in other areas of the household as well.  Children become very close and build strong connections to their nannies, which is all the more reason not to skimp when it comes to hiring a nanny and take your time to find the best one for you.

True benefits.  Now that we understand how this service works, let’s examine other benefits of using it:

(1) Saves unnecessary costs on much less efficient solutions.

(2) Enable families to search an updated database of great nannies for hiring candidates.

(3) Provide busy parents an easy and effective solution to search and find a good family helper.

The internet is a great matching tool.  Online helper’s placement agencies are probably one of the most successful and useful solutions there are to match between nannies and families. We could easily find other great benefits this service is providing since it enables parents to skip several time consuming and unnecessary steps in finding a nanny. If you’re thinking to start looking for a nanny, it’s advised to memorize the content of this article just as you begin using an online nanny matching solution.

If you wish to learn more about the benefits of using online placement agencies to find Nannies for Hire visit: www.online-nanny.com

How to determine your nanny’s pay rate.

NannyNetwork.com consulted with Kathy Webb, President HomeWork Solutions, Inc., a leading payroll and tax service geared to nanny and other domestic employers. She advises “The first rule is that there are not rules and there is no established “standard” when it comes to nanny’s salaries. Wages vary by geography, hours, experience, and education of the nanny.  You nanny’s pay rate can be determined by different methods.  You can call around to your local agencies and see what the current industry standard is.  You can also ask any friends with nannies, what they pay them.  If you simply start talking about it to different people, your answers will come naturally and you’ll know what to pay your nanny.

An entry-level live-in nanny will expect a minimum of $400 gross per week for a HS grad (18-20 yrs.) with no previous nanny experience. Remember minimum wage rules apply. Live-in wages can range to $1000 a week gross and sometimes higher for college graduates and the professional, experienced nanny.

Recognizing the key role geography plays in live-out wages, a nanny will command $9-$12/hr. in less costly areas, upwards to $18-20/hour in major metro markets. Hours over 40 in a week are compensated at the overtime premium for live-out nannies, calculated as 1.5 times the regular hourly rate. Experienced caregivers for infants and for more than two children generally command a premium. A nanny employed on a full time basis expects to be paid her contracted weekly salary for 52 weeks per year, even if the family does not require her services during vacations, holidays, etc.

GROSS vs. NET and Taxes

When discussing salary with your nanny, be VERY careful to distinguish between gross wage [before taxes are deducted] and net wage [the amount of the check or the amount you give her in cash]. It should be clearly understood whether you are withholding income taxes or not. Social Security and Medicare taxes (“the Payroll Taxes”) are your responsibility to send to the IRS; be clear about whether you are deducting her portion from the gross or not, so there is no misunderstanding.

Complying with the Fair Labor Standards Act

A nanny’s salary is to be paid on an hourly basis according to the Fair Labor Standards Act. Generally a nanny will agree to a fixed weekly wage for a specified number of hours, with overtime to be paid for hours outside the agreed weekly schedule.  Most families have their schedules pretty much set up weekly vs. monthly, but you can adjust and budget accordingly.

Nanny employers, as well as employers of other types of domestic workers, need to be very careful in their definition of weekly wages in an employment contract to protect themselves against wage and hour disputes with disgruntled employees. The following examples are provided to illustrate how a compliant work agreement can be crafted.


SITUATION: The Smith family wishes to hire Linda to be a nanny for their family. Linda’s scheduled workweek is Monday thru Friday 7:30 AM – 5: 30 PM. The Smith family agrees to pay Linda, who does not live in their home, $500 per week.

CONTRACT:
Compensation: Position will pay $9.09 per hour, with a weekly guaranteed minimum of $500 per week.

ANALYSIS: Linda’s workweek is scheduled to be 50 hours. This is mathematically structured as 40 hours at $9.09 and 10 hours at $13.64 (1.5 * 9.09). Any hours worked in addition to the 50 scheduled would need to be compensated at the overtime rate of 13.64 per hour because Linda does not live with her employer.


SITUATION: The Martin family wishes to hire Mary to be a nanny for their family. Mary will live in the Martin family’s home. Mary is scheduled to work from 7 AM to 6 PM Monday through Friday. The Martin family offers Mary the position at $440 per week.

CONTRACT:
Compensation: Position will pay $8 per hour, with a weekly guaranteed minimum of $440 per week.

ANALYSIS: Mary’s workweek is 55 hours and she is not entitled to the overtime differential because she is a live-in domestic. Her hourly rate is calculated by dividing the total weekly salary by the scheduled hours worked. Overtime for hours in excess of the 55 per week would be compensated at $8 per hour.

HomeWork Solutions (4nannytaxes.com) Free Nanny Tax Calculators can compute your hourly rate and provide suggested contract language for you.


Employers who state their domestic employee’s pay only in terms of a weekly salary run the risk of having a court interpret this as a standard salary for a 40-hour workweek.

Remember, domestic employment by definition is non-exempt employment. This means you cannot offer a salary that covers any number of work hours, but must pay overtime for hours worked above 40 in a week. By structuring the work agreement with wages paid at an hourly rate and by agreeing to a guaranteed weekly minimum, the family is protecting itself from possible wage disputes and meeting the nanny’s desire for a predictable weekly wage.

Compensation Packages

A nanny compensation package today is not limited to her salary. Many nannies ask for and receive the following:

  • paid time off (PTO) (typically 2 – 3 weeks, some portion at family’s scheduling discretion) PTO may be used for sick, personal and/or vacation days.
  • health insurance (typically 50% paid by family for first year, often fully paid after first year)
  • gym membership
  • cell phones
  • annual ‘allowance’ for child development courses, CPR and First Aide certifications and professional conference fees.

Changes to the Work Week

Another area which is often misunderstood involves payment for days not worked. A nanny should be able to expect that she will be paid for days she is prepared to work, even if you decide you do not need her services for a portion or all of any given week. Why? Two answers come immediately to mind. First, your nanny counts on her income to support herself, and possibly her household. Secondly, you have requested that your nanny reserve this time for you, which precludes her from getting other work during this time. If you are uncomfortable guaranteeing her a weekly guaranteed wage, however, let the nanny know in the Work Agreement how you will handle regularly scheduled days which are not worked due to no fault of the nanny, so that this does not come as an unexpected surprise, three months into the job.

Nanny surveys consistently report that the number one cause of job dissatisfaction and nanny turnover is the addition of job responsibilities and/or hours without appropriate compensation!  ..Basically, your nanny’s pay rate should be determined accordingly if you want to keep her.

Source:
Nanny Wage & Benefits: 4nannies.com

The nanny seeking process can sometimes be a long and frustrating task. The private nanny finders are recommended for families that are looking for a quality nanny and are willing to give them a good salary. One of the reasons families are choosing to use this service is the fact that many other families already used it successfully to find a professional reliable private nanny. Sometimes it’s worth it to have the convenience of a nanny service.  You have lots of other things going on in your life, and this is one way to keep it simple.  Want to learn more? Carefully read the following article.

Locating a Personal Nanny

A good private nanny locator enables parents to define the characteristic of the nanny they are looking for and by that conduct the best possible match. This tool enables you to easily access a large online database of fine nannies and filter candidates according to your needs. Advanced nanny searching and matching solution is not the only services families can enjoy from. Other services may include the following – nanny credibility check, nanny profile preview and tips on editing the nanny hiring agreement.

Why use an online solution?

Now let see what is in it for the parents when using an online solution:

(1) Simple to manage – provides parents a friendly tool to seek, screen and choose the best nanny for their children’s.

(2) Enables parents to manage the nanny searching process by using the web from home or work and by that save valuable time.

(3) Supporting parents both before and after hiring a private nanny and sharing the experience of other families.

It’s all about efficiency

With the internet growth in the past years it only makes sense to use a service such as the private nanny locator in order to find exactly what you need. There are plenty of other important advantages this nanny locating service can offer since it enables parents to skip several time consuming and unnecessary steps in finding a nanny. This quick review covers the main concept of the nanny seeking process. It’s suggested to remember and implement the above tips just as you begin using an online nanny matching solution.


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