How Much Does a Nanny Cost in
Florida?

Pay Rates

Nanny pay rates tend to be higher than babysitter pay rates because nannies often
work longer hours and shoulder more responsibilities. Plus, they may possess
additional experience and qualifications than babysitters which could justify higher
pay.
Typically, nannies are hired to prepare meals for their families, clean the laundry
and run errands around town on their behalf. They may assist children with
homework and school projects as well as transport children to activities and walk the
dog.
Nannies may receive hourly wages as well as monthly salaries from families.
Furthermore, FET should also be deducted on behalf of the nanny – saving time and
money through using a service that withholds FET and payroll taxes on behalf of
their nanny – costing around 70 per month for most families. Nannies are sometimes
compensated mileage reimbursement when transporting children between activities.

Insurance

If your family owns a car, you should purchase commercial auto insurance for the
nanny’s use. Depending on her hours of employment and her work location, she may
also require workers’ compensation insurance; though this will typically only apply
with live-in nannies.
Full-time nannies are considered employees and you are required to pay federal
employment tax on them. Either withhold it from their paycheck, or use a payroll
and tax service that manages this for you.
Make sure that your nanny has general liability insurance, which covers damage or
injury caused by household employees. While this will add cost, it could prove
invaluable in case something goes awry. Furthermore, create an employment
agreement outlining timesheets, vacation days and job duties so as to prevent
future conflicts from arising. Consider adding nanny unemployment insurance
alongside workers’ compensation coverage as another precautionary measure.

Taxes

Many states impose workers’ compensation requirements on household employees
and this could add several hundred dollars a year. Furthermore, if your nanny drives
their own vehicle you should ensure they are added to your auto policy; adding them
may increase premiums by approximately 58 cents per mile according to IRS
figures.
Families that require their nannies to transport children between extracurricular
activities and medical appointments, must allocate enough money for mileage costs.
Furthermore, any family requiring their nannies to obtain CPR certification on an
ongoing basis must cover these additional costs as well.
Household employment regulations, wage and hour law and payroll tax obligations
are governed by an array of Federal, state and local regulations that can be difficult
to navigate on their own. Many families turn to professional payroll and tax services
like GTM Payroll Services in order to simplify this process and lower total nanny
costs.

Other Costs

Taxes associated with hiring a nanny are an integral component of hiring one.
According to the Internal Revenue Service, full-time nannies (and any household
employees) are considered employers by their families and must withhold both
federal and state employment taxes from their salaries; typically this amounts to
two to five percent.
Employers of domestic workers working more than 1,000 hours annually or $2,600
quarterly are also subject to unemployment taxes; costs vary according to state law.
Families should budget for additional nanny-related expenses such as meals, a
nanny car (which will typically increase auto insurance premiums), supplemental
child care services provided by the nanny and any tips provided during holidays –
many survey respondents reported doing this frequently or always (54 percent in
Sittercity’s survey respondents reported this behavior).