How Much Does a Nanny Cost in Massachusetts?
Nanny compensation packages usually include health insurance, mileage/gas reimbursements, meal allowance, tuition reimbursement, and any merit-based bonuses that may apply. Many families also provide paid time off (Federal Holidays/Sick Leave).
Employers of nannies should purchase household employer liability insurance (EPLI). This policy protects families against lawsuits alleging discrimination or wrongful termination claims from nannies, as well as potentially costly settlements that could arise as a result of these allegations.
Full-time
Full-time nannies typically receive an hourly rate for each hour worked, as well as a weekly or monthly salary that covers their living costs and other expenses. Families may also take into account benefits such as car costs, health insurance premiums, and bonuses when hiring full-time nannies.
Under US labor law, domestic workers must be paid for all the time worked. Most families offer paid vacation, sick and personal days as well as time and a half for certain federal holidays.
Workers’ compensation insurance is also mandatory, and GTM can provide an estimate for this coverage. Workers’ comp protects nannies in the event they become injured at work by covering medical bills and lost wages as a result.
As a household employer, it is your responsibility to withhold and file taxes for your nanny correctly. Many families utilize payroll and tax services such as GTM to make this process simpler by automatically calculating deductions and filing the necessary forms.
Part-time
When hiring a part-time nanny, it is important to carefully consider their number of hours worked each week as well as salary needs. You must also take into account transportation needs and any responsibilities, such as transporting your children between activities – this may increase their hourly rate; additionally, you may be required to purchase workers’ compensation insurance, which covers medical and wage benefits in case your nanny becomes injured during employment.
Families should take into account any additional duties, such as meal preparation or laundry tasks. Some families choose to provide their nannies with food and housing or offer other forms of compensation such as bonuses, health insurance premiums, or vacation days as compensation. Federal law also stipulates that domestic household employees be paid overtime at one and one-half the hourly rate – something many employers find unnecessary as this would increase expenses significantly.
Live-in
Families considering hiring a live-in nanny should consider expenses related to housing costs, food (if provided), and transportation costs as well as pay the minimum wage rate of at least $23 an hour. A live-in nanny who resides within her employer’s home is considered a household employee for tax purposes, and therefore the employer must provide workers’ compensation insurance coverage.
Some families believe that live-in nannies should receive less pay than commuters; this is simply not true. Nannies should receive compensation for every hour worked.
Families will also likely incur costs for health and dental insurance, nanny auto insurance, workers’ comp, and employment practices liability coverage, as well as vacation and personal day benefits; though this varies based on employer needs and location. GTM Payroll Services website offers an easy calculator that will allow them to determine gross and net pay as well as taxes that will be withheld from a nanny’s pay.
Live-out
Nanny rates may differ depending on your state and family circumstances, though full-time nannies usually charge a competitive hourly rate. Families can add other employment benefits like paid time off, workers’ compensation insurance, car allowance reimbursement, and cell phone plans as part of the employment package.
Nannies should also receive overtime and holiday pay.
If you hire a live-in nanny, be prepared to cover her housing and food costs as well as offering her a salary that is competitive with others in her field, while also taking into account experience and qualifications.
Nanny insurance can protect both you and your nanny in many ways. It covers accidents or injuries that arise while she works for you and provides wage replacement in case she becomes sick enough not to work. Furthermore, it protects both parties from costly lawsuits regarding issues like wrongful termination or discrimination; typically costing around $300 annually when added onto either home or umbrella policies.