Expenses to Consider When Hiring a Nanny

A nanny can be a great addition to your family, providing personalized care for your child and flexibility for your schedule. Before you start your search, it's essential to be aware of the costs that come with hiring a nanny so can budget properly.

Here are some expenses to consider when hiring a nanny:

1. Nanny's salary: This is the most significant expense to consider when hiring a nanny. A nanny's salary can vary depending on their experience, education, and location. A full-time nanny earns between $20-$40 per hour and is on the higher end in metropolitan areas. It is essential to determine the market rate for nannies in your area so you can offer a competitive salary. If you want to hire a long term nanny you will need to guarantee their hours, meaning that their salary is guaranteed even if you come home early or go out of town and don’t use their services.

2. Taxes: When you hire a nanny you become their employer, and you're responsible for paying employer taxes. This includes Social Security and Medicare taxes, as well as federal and state unemployment taxes. Many people forget to plan for this additional expense. For more information on taxes we recommend contacting GTM Payroll Services here.

3. Benefits: The industry standard is for families to offer some benefits to their nanny such as paid time off, paid holidays, and sick leave. Some families also offer health insurance. While these benefits are not required, they can be a great way to attract and retain a high-quality nanny. It's important to factor in the cost of these benefits when setting your budget.

4. Nanny's transportation: If your nanny needs to drive your child, you will need to reimburse them for mileage or provide a car for their use. It's important to discuss transportation needs upfront and determine a fair reimbursement plan.

5. Agency fees: If you choose to work with a nanny agency to find your nanny, you will need to pay placement fee. While this can be a significant cost, working with an agency can save you time and take the overwhelming task of finding a nanny off of your plate.

6. Household payroll service fees: Many families choose to use a household payroll service to handle payroll taxes and other administrative tasks. These services typically charge a monthly fee. For more information on our favorite payroll service click here.

7. Nanny's expenses: It's important to discuss how you will handle any expenses incurred by the nanny while caring for your child. This could include activities, meals when out and about, or supplies. Some families choose to give their nanny a credit card to use. Others have their nanny keep track of expenses and reimburse them at the end of the week. It's important to be clear about your expectations upfront to avoid any misunderstandings.

Hiring a nanny can be a significant expense for families, but it can also be a worthwhile investment in your child's care. It's important to consider all of the expenses associated with hiring a nanny upfront to avoid any surprises down the road. By doing your research, setting a budget, and being clear about expectations, you can find the right nanny for your family and provide the best care for your child.

Have more questions about hiring a nanny? Ready to start your search?