How Much Does a Nanny Cost in
Arizona?

Hiring a nanny may be more costly than daycare but can bring many advantages
such as flexibility, child and dependent care tax credits, and one-on-one attention
from GTM’s household advisors. GTM household advisors can help evaluate whether
hiring a nanny would be suitable for their family’s situation.
Families should carefully consider the hours and tasks expected of their nanny as
this will impact the hourly rate.

The Hourly Rate

An esteemed member of your family, nannies or babysitters can become integral
components of the lives of your children and must therefore receive appropriate
compensation in return. Nannies typically work full-time hours and receive weekly or
monthly salaries calculated on an hourly rate basis.
Paying your nanny should take into account several factors, including their age and
experience with childcare as well as any additional tasks such as driving, cooking
and laundry. Nannies who possess certifications like early childhood education
degrees or CPR may command a higher hourly rate.
Notable for employers of nannies receiving salaries of over $2,000 annually is their
obligation to withhold taxes from her earnings and pay any applicable social security
and unemployment benefits for your nanny as required by law, while also qualifying
them for Child Care Tax Credit benefits.

Training

Many babysitters and nannies take classes like the American Red Cross babysitting
course, CPR training or early childhood education courses to become certified –
adding valuable credentials such as CPR to their repertoire and increasing salary
with employers.
Families should also factor in any other duties that their nanny might take on, such
as grocery shopping or cleaning tasks, into their child care budget. Such duties can
add up quickly!
Once again, it’s essential to remember that when hiring any household employee
earning over $2,400 annually, employment taxes such as Social Security and
Medicare must be paid on their behalf. Many families opt for payroll services to
handle these taxes on their behalf – this helps the nanny receive what they deserve
while saving time and money from unnecessary hassle.

Insurance

Nanny insurance is an essential expense for many families. A comprehensive policy
should cover property damage, general liability issues and specific lawsuits related
to child-nanny incidents. Many families also wish to add workers’ compensation
coverage in the event that an injured nanny must come back into work; typically this
can be easily done, though costs may increase slightly.

Families that hire full-time nannies must consider themselves employers and pay
federal employment taxes on them as an employee. Additionally, state registration
and workers’ comp coverage is necessary. Many families opt for payroll and tax
services which will withhold taxes from their paycheck while providing them with an
accurate record of their income.

Families should consider adding their nanny to their auto policy if she or he will be
expected to drive children around or run errands on behalf of the family. Some
insurers offer this coverage with workers’ comp, while other firms provide tailored
policies tailored specifically to nannies’ needs.

Other Fees

If your nanny will take your children outside the home to places such as a zoo,
museum, pool, beach or library you should consider transportation costs carefully.
Your nanny could use public transport with passes being needed or drive with her
own auto policy added onto it; you should account for these potential additional
expenses accordingly.

When hiring a full-time nanny, the IRS considers you their employer and requires you
to pay employment taxes (Social Security and Medicare taxes collectively known as
FICA taxes). You have two options for doing this; either withhold these from their
wages or make direct payments out of your own pocket.
Some families opt to pay an added cost to use a payroll service for their nannies and
household employees that takes care of paychecks, taxes and withholdings on your
behalf. Although it adds cost, it can reduce stress by eliminating tax filings and yearend
paperwork on your own and offering support and training services specifically
geared toward household workers.