Nannies provide families who require customized childcare with an excellent
solution. Nannies create an enjoyable daily routine for the children in their care while
managing various household duties and helping with schoolwork/extracurricular
activities/transportation needs for events.
Nannies may either be independent contractors or employees. If the latter, you must
pay taxes on their earnings.
How Much Does a Nanny Cost in CT?
Costs of a Live-In Nanny
Live-in nannies typically receive a weekly salary in addition to room and board. A
full-time nanny typically earns around an hourly pay rate of $17; this exceeds
minimum wages in most states and provides additional employment benefits such
as health insurance coverage and gas money. Nanny pay rates can vary widely
depending on each family’s unique requirements; for instance, special training such
as infant or child CPR/first aid certification could require paying extra; similarly if
working with children who exhibit developmental or behavioral issues more costs
could also increase.
Connecticut nanny salaries are slightly above the national average. Westport and
Stamford are home to some of the highest paying cities for nannies; Westport in
particular brings in over $2 more per hour than its state average average. Note that
household employers must by law pay Social Security and Medicare taxes quarterly
through Form 1040-ES.
Costs of a Live-Out Nanny
Many families mistakenly believe they can pay less for a live-in nanny than for one
who commutes directly into the family home, but this is simply not the case. While
you can exclude room and board costs from their wages, an hourly rate that meets
or exceeds minimum wage in your state must still be paid per hourly worker.
As part of your budget planning for hiring a live-in nanny, be sure to include costs
such as housing, food, cable TV and Internet service for them as well as workers’
compensation insurance (required in certain states). Workers’ comp insurance costs
a nominal annual fee that provides coverage should an accident or illness arise while
on the job.
Preparing payroll taxes entails federal, state and local withholdings as well as filing
Schedule H for household employees with wages over $2600 each quarter. GTM can
assist in estimating these costs as well as walking you through this process.
A nanny share is an arrangement where two or more families split the cost of hiring
a live-in nanny, with each family usually covering two thirds of the hourly rate of this
individual nanny. By sharing expenses among themselves, both families can
leverage her skills and expertise while covering any additional costs such as payroll
service, taxes or benefits that arises as part of this arrangement.
Some families may expand the nanny’s role by asking her to complete additional
duties such as cleaning and cooking meals for both families. Doing this may increase
compensation; therefore it should be discussed between both families prior to hiring.
Also, certain states mandate workers’ compensation insurance coverage for
domestic employees.
Families involved in nanny shares must enter into a work agreement that outlines
their duties and responsibilities of the nanny, including issues such as where she will
work and the number of vacation days she will receive.
Costs of a Nanny Agency
Nanny agencies can be an efficient way of finding babysitters or nannies. They
provide valuable help with job descriptions, candidate selection and payroll and tax
filing; including filing Form 1040-ES and Schedule H with the IRS and Social Security
for any payments exceeding $2600 annually or $1,000 quarterly. These forms report
wages directly.
Cost of hiring a nanny depends on their experience and responsibilities, with
additional charges added if your nanny needs to travel for household tasks or
perform travel-related duties. Also consider their commute time between home and
work when making this decision.
Full-time live in nannies typically work 40 to 55+ hours each week and are paid a
weekly salary instead of hourly rates. They will live in your home with your children,
sharing a room together.