Are you considering hiring a nanny? As a household employer, paying your nanny a fair wage is essential. While you may not be required to offer paid vacation, health insurance, paid sick time, or retirement savings plans, offering some benefits is important. Benefits can help you attract and retain the best nannies in the industry. In addition, it helps your nanny avoid exhaustion or burnout. So, while you are considering your nanny’s employment details, make sure you think seriously about what it takes to provide a good benefits package for your nanny.
What should you include?
Paid Time Off (PTO): The average paid time off is 5 to 15 days. You can determine how much time is appropriate for your family and their specific needs. You can also designate if the paid time can carry over from year, or if it resets each calendar year or upon the employment anniversary. For example, if you offer ten days a year but the nanny rolls those over into another year, you would potentially be looking at 20 days without a nanny. This prolonged period would require you to find alternate coverage, and could be difficult.
Mileage Reimbursement: If your nanny uses their vehicle to run errands for you or transports your children to various activities or school, consider reimbursing her mileage. The IRS sets the allowable rate for non-taxable mileage reimbursement each year.
Health Insurance: Employers often pay at least half of health insurance costs, and depending on the situation, sometimes provide coverage in full as soon as the first year of employment.
Paid Holidays: New Years’, Christmas, Memorial Day, Independence Day, Thanksgiving, and Labor Day are some of the most common paid holidays.
Ensure to set aside time to establish a written work agreement before your employee begins work. The document should outline each part of the wages, payment schedule, and benefits for your nanny. Both of you should go over it in detail and sign it so there is no confusion later down the road.
SOURCE: Homework Solutions