Q. I am looking to hire a nanny, but am not sure what to compensate them. What is the "going rate" for nannies these days?
A. Many factors such as experience, education and job responsibilities need to be considered. As well, you may now be accountable for additional fees and taxes, including California's overtime laws for domestic employees. Unfortunately, many of these issues are often overlooked, leaving some families in a financial bind. Neverland Nannies will guide you through this process to help keep things in perspective. In general, however, a good guideline would be between $500-1,000 per week, or $13-25+ per hour, for full-time employees.
Q. What are the legal requirements to hire a nanny or housekeeper?
A. The process of hiring a household employee can often seem quite complicated. In California, if you pay your employee over $1,600 per year (for 2008), you are legally required to report your new hire to the government and submit taxes quarterly. You are responsible to withhold Medicare, Social Security and applicable taxes. While it is not required by law to withhold Federal and State income taxes from your employee's paycheck, it is highly recommended, as without such withholding, your employee may owe significant taxes at the end of the year and potentially face an underpayment penalty.
Note: It is a really good idea to clarify tax obligations in an Employment Agreement, to prevent any ill feelings or miscommunication between you and your employee.
Q. This all seems very complicated. Wouldn't it be much easier for me to provide my nanny with a 1099 at the end of the year instead?
A. A very common misconception is that nannies, or any other domestic help (such as housekeepers and personal assistants) are contractors, when indeed they are household employees. Instead, it is required by the government that you provide them with a W2 form at the end of each year.
Q. What happens if the person I hire through Neverland Nannies quits without notice?
A. Neverland Nannies provides a 120 day replacement period for part-time and full-time employees, as well as a 30 day replacement period for temporary employees hired for a maximum of ninety days of employment. You may refer to the Family/Agency Agreement for a more detailed explanation.
Q. Is okay for me to pay my employee through our company payroll?
A. This is a two-part answer. Yes, you can pay your employee through your company payroll, HOWEVER, by law, the people you employ to primarily work for you out of your home are considered a benefit to your home and not to your company, which therefore cannot be deducted as a business expense.
Q. As a household employer, am I eligible for any tax breaks?
A. If you are employing a nanny, then yes, you will either be able to benefit from a Dependent Care Account, or a tax credit. For additional information on tax incentives, you may visit LegallyNanny.com, or visit breedlove-online.com.
Q. We are considering offering Health Insurance to our Employee but aren't sure we can afford it. Where can we find more information on this?
A. Offering health insurance (full or partial contributions) is a wonderful way to attract long term employees and also allows both you and your employee to deduct it from your taxes! Our agency works with some of the health industry's most well respected agents. Feel free to give us a call and we can guide you in the right direction.
Q. The reason I am hiring someone is because I don't have enough hours in the day to get everything I need done. Is there someone who can help me with my tax obligations?
A. Neverland Nannies works with some great companies such as Breedlove & Associates and HomeWork Solutions, who specifically focuses on Household employer taxes. They can also help set up your tax accounts, submit your new hire to the government, as well as maintain the payroll for your employee(s). Alternatively, if you just want help getting started, Legally Nanny is an excellent option for one flat fee. Legally Nanny's service includes completing and submitting all initial forms on your behalf, providing an easy to use online payroll calculator so that you can complete future payrolls, drafting a comprehensive and legally enforceable employment agreement, and as well, their responsive, confidential and knowledgeable client service.
Note: The IRS has estimated that the average amount of time it takes for a household employer to fulfill the compliance process is between 50-60 hours per year. Hiring a professional company to assist you can greatly reduce your invested hours.
Q. We are first time parents expecting twins and are looking to hire a night nanny or baby nurse to help us with the transition into parenthood. How long do most people hire Night Nannies or Baby Nurses for? And what is the difference between the two? What is the difference in price for Night Nannies or Baby Nurses?
A. Having twins and being first time parents is indeed a big transition. Hiring a Night Nanny or a Baby Nurse will probably be one of the best investments you make. The main difference between the two is that a Night Nanny only works during evening/sleep hours; whereas a Baby Nurse will work around the clock as needed. The cost to hire each is relatively the same. For singletons, expect to pay between $25-$35 per hour, twins $30-$40 per hour and triplets $35-$50 per hour. One thing to consider when having twins is that you may want 24 hour care for at least the first week. In this case, you would hire a baby nurse. Most baby nurses will offer a flat nightly rate for 24hour shifts which significantly lowers the hourly cost. For more information regarding our Night Nannies and/or Baby Nurses, please give us a call at 877-626-6912
Q. Is it true that Baby Nurses must be registered nurses?
A. No. A baby nurse is not required to be an RN. A baby nurse is a newborn specialist who has undergone special training to work with families and their newborns. Many of our baby nurses have certifications including lactation consulting, sleep training, postpartum care, Certified Infant Massage, and more. Additionally, all of our baby nurses must have at least 6 years experience in order to seek work through Neverland Nannies, must be CPR Certified, a cleared background check and Trustline Registered.
