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Information for Both Families
and Nannies:
Nanny Salaries and Benefits
Typical Hours and Duties For Nannies
Tax Information
Summer Placements
Short Term / Temporary Placements
Comments On How We Approach The Search Process
Nanny Salaries
and Benefits
Top of Page
Nanny salaries vary depending on experience, education, hours on the job,
duties, number of children, etc.
Live-out nannies usually earn $14 - $18 per hour depending on
their qualifications, the number of children in the family and the duties of the
job. At 45 hours per week,
the weekly salary range would be about $630 to $810 per week.
Live-in nannies usually work full time (40-50 hrs) and earn $500 to $650
per week plus room and board.
Paid holidays and vacation are standard benefits for both types of
nannies.
A contribution to single health insurance is a common benefit. We can
refer you to an insurance company that specializes in policies for nannies.
If a nanny is required to use her car to transport the children or run
errands for the family, she should be reimbursed accordingly. The usual approach is to use
the IRS mileage rate which is 55.5 cents per mile (as of January 1, 2012). This is based on an
annual study of the fixed and variable costs of operating an automobile.
Other possible benefits may include:
allowance for cell phone expenses
contribution to health club membership
tuition reimbursement for continuing education classes
personal use of a family car
cash bonus at the completion of a year on the job
Note to live-out nannies: when comparing the salaries to
other types of jobs, remember that your meal times are paid as time worked, unlike other
jobs. Also, your family provides your meals while you are on duty, and these are not
counted as part of your taxable income. These can add up to be significant advantages
compared to other jobs.
Typical Hours
and Duties For Nannies
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A nanny is a professional caregiver who works in a family's home caring
for their children on a full-time or part-time basis. Depending on the position, a nanny
may or may not live with the family.
Responsibilities of a nanny normally include caring for a child's physical
needs, organizing play activities, meal planning and preparation, behavior
management, and
assistance in learning new skills. Any housekeeping responsibilities are primarily
child-related. Nannies can also help transport children to classes, preschool, routine medical appointments, haircuts, etc.
Full time positions range from 40 - 50 hours per week, Monday through
Friday. Part time jobs are more variable depending on the family's needs.
Jobs that require work days longer than about 10 hours, or numerous
evening or weekend hours, or significant on-call availability, are usually difficult to
fill, especially for live-out situations. Higher salaries are required in such cases and
extra care must be taken to insure the nanny doesn't burn out. In addition, any hours
worked in addition to the regular schedule may require overtime pay.
Tax Information Top of Page
Families who employ a nanny to work in their home have certain obligations
for state and federal employment taxes. These obligations apply to all full time and part
time nannies paid over $1,800 in a year (2012). Treating a nanny as an independent
contractor is clearly not allowed by the tax code. Household employers are
entitled to tax breaks when they pay their nanny legally. For families, there
are tax breaks that offset most, if not all, of the employer tax costs. In some
cases, families even come out ahead by paying legally!
Briefly, the family must withhold 5.65% (2012) of the nanny's pay for Social
Security and Medicare tax. The family is also obligated to pay 7.65% and send both
portions to the IRS. The family is also required to purchase Worker's Compensation
Insurance and pay into Unemployment Insurance. In total these add up to about 15%
of the nanny's gross salary. Withholding income tax for the nanny is
optional. However, if it is not withheld, the nanny must make quarterly payments on her
own.
We provide to our client families a brief summary of the steps to get set
up as a domestic employer, including websites, forms #'s and telephone #'s. It includes information
specific to the State of Minnesota. For more extensive information, visit some of the
sites listed in our "Hot Links" page.
We can also help nannies and families estimate the take home pay after
various taxes are withheld.
Summer Placements Top of Page
We do not do placements for just a summer. There are so many college
students and new high school graduates available that families have little difficulty
finding one on their own. Our extensive in depth screening process is the same
for all placements. The fee we would need to charge a family for these services is often too
high for such a short placement.
Short Term / Temporary Placements
Top of Page
Nannies from the Heartland also provides temporary nanny placement service for
evenings, overnights, weekdays, weekends, etc. Please see our Temporary
Placements page or contact us for additional information.
Comments On How We Approach The Search
Process Top of Page
We put more care and attention into each placement than any other agency
in Minnesota. While some agencies may match us on the amount of time and effort they spend
on some of the steps listed below, none match us on all of them:
personally interviewing most families in their home; if a family chooses
not to have an in-home consultation, we do an extensive telephone
consultation
personally interviewing each potentially qualified
candidate
telephoning references (much better than sending
questionnaires)
preparing a detailed 20-25 page file of information on
each candidate
discussing jobs with candidates before sending out their
file
discussing candidates with families
following up with both the candidate and family after
interviews
following up with the families and nannies after the
placement is made
We spend more money on recruitment advertising for
nannies than any other local agency. Referrals are extremely valuable and we
have a huge referral base developed over 21 years in business. We don't have a "pool" of
candidates. Rather, we have a "flow" of candidates that changes weekly. We can
predict fairly well which jobs should fill quickly and which ones may take longer.
Families often want to interview more than one nanny candidate. Likewise,
nanny candidates often want to interview with more than one family. Thus, we send each
family as many qualified candidates as we have available that we think would be a good match (and
where the candidate has expressed interest in the family). We send each qualified
candidate to client families she'd like to interview with if we feel she meets
their requirements.
We treat all job openings equally. Our major goal is to place every qualified
candidate with client families as quickly as possible. However, we don't want the families or nannies wasting their time when
they are not potentially well matched. We don't refer candidates who are only marginally
qualified and we only work with families that we feel would be good employers. We make
referrals when we are confident that the placement would last at least a year.
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