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, the number of children and job responsibilities all need to be considered. However, a good guideline would be between $550-1,000 per week, or $15-25+ 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 $1,900 per year or more than $1,000 per calendar quarter, you are legally required to file as a household employer, 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. It is required by law that you provide your domestic employee with a W2 form at the end of each year. There are, however, some great Household payroll companies, such as Breedlove & Associates to assist you with all payroll and household employment law issues.
Q. What happens if the person I hire through Neverland Nannies quits without notice?
A. Neverland Nannies provides anywhere from a 30-365 day replacement period for permanent domestic employees (depending on which fee structure you choose), as well as a 90 day replacement period for temporary employees hired for a maximum of ninety days of employment. You may refer to the Household Employer/Agency Agreement for a more detailed explanation, which is available upon request.
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, visit breedlove-online.com or call our agency for more information.
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. Again, 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).
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 want to hire a Newborn Care Specialist (N.C.S.) or Baby Nurse. What is the difference between the two?
A. The original term to define a woman who specialized in infant care was the term "Baby Nurse". However, there was an ongoing misconception that baby nurses due to their name, were either Registered Nurses (RN) or Licensed Vocational Nurses (LVN), which simply isn't always the case. As a result, many states have mandated that anyone without having an actual nursing degree needed to use the term "Newborn Care Specialist" for accuracy. While not technically accurate, but from the average family's perspective, a baby nurse and/or Newborn Care Specialist are considered one in the same.
Regardless of which individual you consider working with, the most important thing to remember when hiring either of the two is that they have extensive experience and undergone some formal training working with newborns. Further, if you should have an infant requiring special medical attention or special needs, a Baby Nurse (by true definition) may be recommended as they have undergone formal training to handle these specific types of scenarios.
What should we expect to pay a N.C.S. or Baby Nurse, if we live in Los Angeles?
A. The cost to hire either an NCS or Baby Nurse in Los Angeles 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. When hiring someone for 24hour newborn care, most professionals (not all) will offer a nightly rate. For more information regarding our Newborn Specialists and/or Baby Nurses, please give us a call at 877-626-6912