Are you considering hiring a nanny, but concerned about the whether it’s in your budget? You’re not alone. The rising costs of childcare has many families wondering if a long-term nanny share could be the right option for them. They’re drawn to the idea of shared childcare for its potential cost savings and social benefits. However, it’s important, as you weigh your options, to truly understand all the costs involved. We’ll break down the economics of nanny shares, from hourly wages to employer responsibilities, giving you a clear picture of what to expect when embarking on this childcare journey.
Nanny Share Pay Rates – Let’s Talk Dollars and Cents
Nanny shares can be a budget-friendly childcare option. However, it is important to establish a fair, transparent, and legal payment arrangement that works for both families, and your nanny, up front. In the Denver Metro area, a high-quality nanny makes $27-$32+ per hour (gross). Therefore, it only makes sense that a nanny caring for two or more children, and who also manages two employee-employer relationships, warrants a higher wage. Be sure to discuss, in advance, what pay rate your potential partner(s) can afford long-term. In our experience, to attract high-quality candidates who will commit long-term, most nanny-share families meet or exceed the standard pay range by $3-6+ per hour. It’s a more challenging job, and it’s important to compensate accordingly. Crunch the numbers. Then, be sure all local and state wage and employment requirements are met before starting your search.
Added Costs to Consider as a Household Employer
And since we’re on the topic, let’s talk about payroll, taxes, and compliance. As mundane as it might seem, it’s essential to discuss these things up front. The IRS has ruled, with very few exceptions, that nannies are employees of the family/families they work for (W-2). They are not independent contractors (1099).
Be sure to understand your responsibilities as a household employer and discuss how you’ll handle payroll, taxes, Worker’s Compensation, potential benefits and more, with your nanny share family and with an expert. And a bit of good news: as part of a share, you’re able to split the cost of the nanny’s wages and the subsequent tax liability, but you don’t have to split the tax breaks! ABC has several industry partners whose job it is to make it easy – contact us for recommendations.
Is a Nanny Share the Right Choice For You?
Participating in a nanny share can be a smart and economical choice for families looking to balance quality childcare with financial prudence. By understanding the full scope of costs – competitive wages, payroll, taxes, and benefits – you can make an informed decision that aligns with your family’s budget, values and needs. Check out our blog on our top tips for a successful nanny share for more info.
Are you ready to explore this childcare option further? If so, don’t hesitate to contact the ABC Nannies‘ team today to learn how we can help you find the perfect nanny share arrangement tailored to your family’s unique requirements.
