If you’re considering hiring a nanny to care for your children, it’s important to consider the financial impact it will have on your budget. So….just how much does a nanny cost? Although pay for babysitters and nannies can vary widely depending on location, these helpful facts and figures can give you a general idea of how much a nanny costs each month.
What is the cost of hiring a nanny?
Nanny wages vary depending on a number of factors, such as education, level of experience, special certifications, and the age and number of children your nanny will care for. Whether your nanny is full time, part time, or live-in, it’s best to pay a weekly or monthly salary based on a calculated hourly wage.
According to the 2017 International Nanny Association Salary & Benefits Survey, the average hourly rate for nannies in the U.S. is $19.14 USD per hour. Of course, in higher cost-of-living areas like New York or Chicago, wages will be higher. Conversely, if you live in a smaller city or rural area you may be able to pay less.
When deciding what to pay a nanny, keep in mind that the hourly rate for nannies caring for newborns will cost about 2 percent more than those caring for children over the age of one. If you have more than one child, expect to pay at least $1 or $2 more per hour per child. If you’d like your nanny to do light housework and cooking, you’ll have to add a dollar or two for that as well.
This will put the average weekly pay for a nanny at about $765 for 40hrs per week for 1 toddler or $3,315 per month (52 weeks/12). That sounds like a lot but most people don’t need a nanny for 8 hours per day or 52 weeks per year. This is where part-time nanny rates can start to differ. The average cost for a part-time nanny might actually be slightly more per hour but overall your cost is less with fewer hours. As an example, if you payed $1 more for a part-time nanny ($20.14) but you only needed 3 hours per day on weekdays you would be closer to $1,300 per month. You may be able to negotiate better rates for a longer commitment and more hours.
Additionally, the going rate for a nanny could change if you share your nanny with someone else. If you had a neighbor or friend that had an additional child that needed care you could help split the cost. Nanny share rates could add a couple dollars (let’s say $22 per hour) but by splitting it you could be close to $715 each per month at 3 hours per day Monday – Friday.
But remember that there may be additional costs if you don’t go through a nanny services company.
It’s important to consider whether you will offer your nanny benefits like sick time, holiday pay, paid time off, health insurance, and travel costs. If you want your nanny to stick around for the long haul, offering benefits will attract people who have chosen this profession as a career track, not just someone who’s looking for a short-term gig.
Remember that you’re hiring a nanny to care for and nurture your children, which is one of the most important jobs on the planet. Providing fair compensation for the vital work your nanny does is well worth having someone you trust properly care for your children.
Nanny payroll services
While it may be tempting to pay your nanny under the table or give her a 1099, the IRS considers household workers employees. Do you need a nanny payroll service? When you are figuring out the best way to pay your nanny we can start with the basics. If you pay your nanny $1,000 or more per quarter or $2,100+ per calendar year, you likely will need to pay the Nanny Tax. You are obligated to pay income tax, social security, Medicare, and unemployment taxes. Depending on the state you live in you may need to pay local and state taxes as well. Nanny payroll services can handle all of this for you.
It’s also vital to note that nannies are covered by the Fair Labor Standards Act–their hourly pay must be at least minimum wage; and if your nanny does not live with you, he or she may be entitled to overtime for work over 40 hours per week. If figuring all this out seems daunting, consult an accountant before you write that first paycheck.