Should I Hire A Live In Nanny?

A live-in nanny is someone who lives at your home and cares for your children. A variety of reasons can lead families to choose to hire a live-in nanny over a nanny who commutes to their home. Parents who travel frequently or work irregular hours may find it easier to have live-in nannies. A live-in nanny is also beneficial for children with special needs. A live-in nanny can provide more flexibility for children living in expensive areas.

Here’s everything you need to know about a live-in nanny and their salary.

What should you learn about hiring a live in nanny 

It might seem like you are getting a great deal by providing room and board for a live-in nanny. They can work longer hours and be more available, as well as being less likely to be late. You can also charge them for their room and board. It is often believed that a live-in nanny shouldn’t be paid the same as one who commutes to their home for work. Many families believe that child care is fair in exchange for reduced pay and room and board. Your nanny does not have to pay rent, utilities or food.

Although it may seem logical to offer a lower rate for a live-in nanny, it is not fair. No matter if your nanny works live-out or in-home, the salary should be the same. In a moment we’ll discuss the costs of having a live-in nanny, but first let’s look at the average nanny salary in the United States.

The base salary for a nanny is dependent on where you live. The cost of childcare can increase due to increased demand and rising living costs. In states like New York, Massachusetts and Washington, nannies may earn anywhere from $17-$23 an hour. The average hourly wage may be closer at $13 to $15 in states like Arkansas, North Carolina, and New Mexico.

It is easy to see the differences in pay in the cities. The hourly rate in Phoenix and Dallas ranges between $18 and $22/hour, while Denver ranges between $23 and $28/hour. These averages are higher because some agencies adhere to high standards, high quality care, fair wages, and other high standards.

Another factor that can affect a live-in nanny’s salary is their education and experience. You can expect to get a higher salary if your nanny is more experienced or has more job-specific skills. Your nanny’s salary will depend on the job. Nannies who care for multiple children often earn more. Nannies should be paid accordingly for jobs that involve household chores or running errands.

Expenses for live in nanny

You won’t have to pay as much for room and board if you already have a bedroom and a bathroom. Other factors such as the size of your house and the cost of electricity and water in your area, have a greater impact on monthly bills.

It is your decision to ask a nanny to stay with you and not the nanny. Live-in nannies can eat, sleep and rest in the same location as they work. They can’t leave their job after work is done.

A live-in nanny is not their home, no matter how happy and content they may be with their families. They must be conscious of what they do with their time and how often they leave the house. You’re familiar with the importance of being mindful of other people living in your home if you have ever lived with them.

Many live-in nannies struggle to find “off hours” while caring for their children. Although flexible scheduling is one advantage of a live-in nanny’s job, it can make their job more difficult to maintain.

Extra Expenses 

You have decided that it’s time to hire a nanny. You are confident that you will save time and money, as well as have the opportunity to build a relationship with an infant, child or teenager, so you are excited! However, something many nanny employers forget is additional costs and benefits of hiring a nanny that should factor into the budget when comparing nanny agencies and interviewing candidates. When you hire a nanny, don’t forget to consider all the other costs that come with having one on your payroll — and make sure to include them in your budgeting projections. Don’t leave out such things as an annual bonus, yearly raises, food costs, insurance, and gas reimbursement.

Should you deduct room and board for a live in nanny

Depending on the area you live in there is only a certain amount you can deduct for room and board. This amount is typically around $100 per week. For most people they don’t think that’s enough to deduct from their living expenses. The average family provides room and board as a perk for a live-in nanny for convenience.

Due to different states having varying laws on deductions for a live-in nanny it can be difficult to keep up with all the deductions because they are so minimal. Most of the time people don’t even notice a difference by having a live-in nanny confirming it’s not worth keeping up with the small deductions you can or cannot make.

Working with a live in nanny 

You will need to be familiar with the legal requirements and terms of a live-in nanny hire. The state laws regarding live-in nanny arrangements are different. This is why it’s important to work with a nanny agency that excels at live-in placements . This agency will provide everything you need to be “above board” in order to ensure mutually beneficial relationships for your family members and your new nanny.

The first thing to do when you hire a live-in nanny is to talk about your schedule and boundaries. A live-in nanny doesn’t necessarily mean that they will provide 24/7 child care. Set a schedule for how long your nanny will be available each day. Offers all clients a live in nanny agreement that will guide the conversation and maintain those boundaries.

If you need them after-hours, have a plan and offer overtime if they work over 40 hours per week. Although overtime is not mandatory for live-in nannies, in Arizona, Texas or Colorado, agencies encourage them to do so.

Do you pay live-in nanny taxes?

What if I told you that paying live-in nanny taxes can benefit your nanny? In addition to the peace of mind that comes from knowing she’s being lawfully compensated, it makes it easier for her to take advantage of potential tax benefits, which include lower tax liability for herself and your family. Many people wonder if they should pay their nanny through a standard payroll service, or handle the money management informally. The answer is straightforward, but many people don’t know about the laws and regulations at play. First and most important, you can deduct childcare expenses; it’s an above-the-line deduction, so no special forms or calculations are required on your part and it’s automatically subtracted from your taxable income. Pay fair wages: Find out what other parents in your area are paying their nannies. While there is not a federal minimum wage for live-in nannies, states may impose a minimum fair wage. The rules vary widely by state, and even cities within a state can require different rates. If you want to post an ad for a live-in position, find out which (if any) agencies regulate this type of job and find out more about whether you need to set forth rules in your employment agreement.

The short answer: yes. If you pay someone more than $2,400 a year, you’re required to pay taxes. But paying these “nanny taxes” provide important short- and long-term benefits to your nanny as well as enable you to take advantage of tax breaks to lower your tax liability.

 

Au pair vs Nanny 

An Au Pair is also a live-in childcare provider but they typically are from other areas of the world coming to study while also providing child care for families in their area. On average the cost for a live-in nanny is $25,000-$35,000 a year. Compared to an au pair that is on average of $20,000 a year.

 

There are many things to consider when choosing between a nanny or a live-in nanny. While the pay difference between the two isn’t that significant it is all about the convenience for your family. If you have the extra space in your home (spare bedroom and bathroom) a live-in nanny might just be the right thing for you. If you are looking on where to start to find one, consider looking into agencies first. In the end you should decide what is going to be best for your family and kids.

 

Sources: 

https://www.staffingattiffanies.com/2020/11/23/how-much-does-a-live-in-nanny-cost/

https://www.care.com/c/what-does-a-live-in-nanny-cost/

https://culturalcare.com/blog/how-is-an-au-pair-different-from-a-live-in-nanny/