Budgetary Concerns to Be Aware of When Hiring a Nanny

March 7th, 2018 by

Budgetary Concerns to Be Aware of When Hiring a Nanny

Hiring a nanny is a labor-intensive process and can be a daunting affair if you’re unprepared. Not only do parents have to find a nanny that fits their requirements, i.e., with schedule and responsibilities, they have to find a caregiver that has the right temperament, all while matching their budget. Parents looking to hire a nanny should make sure that they’ve given careful thought to how much they want to spend on a nanny, and if that figure is a set amount, or if there is room for flexibility. Additional budgetary concerns to be aware of when hiring a nanny can be found below.

Familiarize Yourself with Monetary Terms

Part of determining criteria for a nanny that fits your household is taking salary into account. Be sure to factor in taxes when figuring out the total cost. Salary should be presented to nannies on gross terms. The gross figure is the total amount before anything is deducted. The net income is the residual amount of earnings after all deductions have been taken from his or her paycheck. Deductions include payroll taxes, retirement plan contributions, health insurance payments, etc. Nannies must pay Social Security as well as federal income taxes on their salary. As an employer, you’re obligated by the federal government to pay Social Security taxes and, depending on the state, state employment taxes. Answers to common nanny compensation questions can be found here and here.

Consider Any Additional Fees

If you are using the services of an agency, make sure to confirm with them what their fees are to avoid any misunderstanding later on. Additional expenses in hiring a nanny can include running a background check, as well as checking driving records, if your position requires driving. Our agency fee includes a comprehensive background check. Under the New York City Human Rights Law, employers are prohibited from checking or using an employee’s credit history for employment decisions.

Establish a Budget for Activities

Living in New York City is a wonderful opportunity for children, allowing them access to some of the world’s best museums, entertainment, and other age-appropriate events and activities. Make sure to allocate a budget and exhibits that you want your child to take advantage of. Our comprehensive list of programs in and around New York City can be found here, and is updated every month.

Account for Additional Children

If you and your spouse plan for additional children in the future, make sure to take into consideration a small increase in your nanny’s pay. It doesn’t have to be significant, but should begin at a few more dollars per hour, because of the extra responsibilities and duties.

Contact the Nanny Authority for More Nanny Pay Information Today!

Here at the Nanny Authority, our placement specialists are well-versed in ensuring that finding and hiring a nanny is as stress-free as possible. This means helping parents determine their criteria, arranging and coordinating the interviews, and assist with putting together an offer letter. For more information on how a placement specialist can help you, contact us via e-mail or at 973-466-2669 today!