Health insurance plays a vital role in our society – protecting us against injuries that we haven’t sustained yet, and hopefully never will. Health insurance for nannies serves this same essential function, yet it is a subject that our clients are often unfamiliar with. Nanny insurance is advisable, but it’s also a decision that needs to be made on a case-by-case basis.
Why Provide Insurance for Nannies?
There are a number of positives that come with providing health insurance for your nanny. Cost aside, it will allow you to ensure that your nanny is healthy when coming to work and has not forgone treatment for a contagious illness due to the financial impact of doing so. Additionally, in the event of a more significant injury you will help them to avoid having to take a long absence from work in order to heal. Proper healthcare can speed recovery time and will allow your nanny to return to work sooner, thus limiting your need to scramble for supplemental childcare assistance.
Additionally, there are provisions within the Affordable Care Act (ACA) that incentivize providing health insurance for nannies and other household workers. Through the Small Business Health Options Program (a component of the ACA), you may be eligible for a tax credit worth up to 50% of premium costs when purchasing insurance for your nanny. And you can write off the remaining portion of nanny insurance premium costs that fall outside of this tax credit as well.
Negotiating Nanny Insurance
Providing health insurance for nannies is an issue that can be addressed in several different ways. In general, it should be a component of the discussion that you have with a nanny when you plan on employing them. It may be helpful to prepare a few different compensation package options for them to consider, ensuring that all parties are pleased with the ultimate outcome of negotiation:
- You can offer a higher salary that is not accompanied by health insurance
- A modified salary that incorporates health insurance but in a partial form
- An option that includes a more comprehensive insurance policy but with a salary that reflects the added employer cost
It’s important that you’re on the same page as your nanny and that both parties understand the drawbacks and benefits of each option. At Nanny Authority we have extensive experience bringing together qualified, caring nannies with suitable, appreciative families. For further insight into the finer points of nanny-family relations or help finding a nanny, contact Nanny Authority today or call us at 877-466-2669.