Some families are wary of employing a live-in nanny because of its cost, but by
providing an independent living space for her they could save money and find peace
of mind for all involved.
Live-in nannies may be an attractive solution for families that value privacy,
preferring less of their home to serve as an office, and who want less space used as
an area for work. When calculating live-in nanny costs, wage considerations need to
be kept in mind as well.

How Much Does a Live-In Nanny Cost Per Month?

Room and Board

Live-in nannies can save families money on rental costs and commute costs while
increasing utility bills; therefore, their compensation package should include housing
value.
At this way, she can save money for other expenses, like car insurance, cell phone
plans, student loans and personal items – particularly important in New York where
rents can be costly.
A nanny should ideally have their own private room and bathroom, along with food
that will help her feel part of the family as well as save money for other expenses.
Regular household meals as well as special nanny-specific meals should be
available; she should be allowed to select her groceries independently if desired,
although families may offer grocery gift cards as convenience measures. These
services make up part of her compensation package which helps create an
important sense of family while saving money for other expenses.

Overtime

Consider these factors when determining how much to pay your live-in nanny. One
key difference between an au Pair and live-in nannies is that live-in nannies often
work for longer (up to one year), than Au Pairs do.
Under the Fair Labor Standards Act, any hours worked over 40 in any week must be
compensated as overtime; however, if your live-in nanny resides with you and meals
or sleep time are excluded from her total number of overtime hours; this should be
specified in their contract or work agreement.
Consider offering your nanny a healthcare stipend or Health Reimbursement
Arrangement; in addition, if they will be taking your children on outings or social
events, reimburse her for travel expenses, such as gas and tolls. It would also be
wise to give an annual raise.

Insurance

When hiring a live-in nanny, you must also provide her with some form of insurance
policy – this could include health, workers’ compensation or employment practices
liability coverage. When reviewing policies and costs associated with this choice for
your family, make a choice which best meets their needs.
Live-in nannies typically receive an annual salary that includes room and board;
however, families should be mindful that if they choose to subtract this cost from
the nanny’s pay, this amounts to paying her only for work – an act which may violate
certain state laws and is generally frowned upon among many nannies.
Live-in nannies are entitled to paid holidays (usually New Year’s Day, Memorial Day,
Fourth of July Labor Day Thanksgiving Christmas and vacation time), vacation pay
and bonus pay. Families should discuss these with their nanny during their interview
process and prepare a written contract that clearly details all these considerations
as well as wages bonus holiday vacation insurance and taxes.

Taxes

There are various factors involved in calculating a live-in nanny’s salary. Families
should factor in costs associated with room and board (private bedroom rent and
utilities), food, household supplies and transportation; provided that your live-in
nanny does not live within your home itself.
FICA taxes – which cover their share of Social Security and Medicare contributions –
are withheld from nanny’s paychecks, so families should review their federal income
tax withholding quarterly to avoid underpayment penalties.
Some employers give pretax dollars directly to nannies for health insurance
premiums, saving both parties on taxes. It is wise for family employers to keep an
unaltered copy of the nanny’s health insurance card on file as proof of coverage;
workers’ compensation insurance may also be mandated in your state and adds
further cost.

What is the average live-in nanny salary?
What are the room and board costs for a live-in nanny?

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