How Much Does a Nanny Cost in the
Bay Area?

Nannys usually receive a salary rather than being compensated in cash, which
includes benefits such as vacation, sick pay and holidays pay. Some families also
provide additional perks such as gas or health care stipends for the nanny.
Nannies also help families create a daily routine and can transport children to
school, extracurricular activities or appointments. Furthermore, nannies may
perform housekeeping services and other household duties.

Expenses

Nanny expenses vary and can include many different costs. A family may need to
cover background checks and hiring fees of at least $200; additionally they should
purchase auto insurance if their nanny will use her own car, mileage reimbursement
for travel expenses incurred while using said vehicle, as well as costs related to
housing should she reside with them or nearby apartments.
Families should carefully consider all costs related to hiring employees, from payroll
taxes (which vary by state) to health, workers’ comp and employment practices
liability coverage. Many families opt for a payroll and tax service which manages all
filing requirements so it’s easier for them to take advantage of tax benefits like
Dependent Care Flexible Spending Accounts; other families prefer paying their
nannies directly, either in cash or through services that enable off-book payments; it
is essential for families to discuss all options together prior to making any decisions
regarding hiring decisions.

Fees

Hiring a nanny comes with various costs and fees, including search fees,
background checks and any expenses related to payroll. Families may also be
required to pay taxes and workers’ compensation insurance premiums as part of this
arrangement.
Nannies typically receive an hourly pay rate; however, several factors may alter this
payment structure. Experience level can have an impact on pay; for instance, hiring
someone less experienced could cost more.
Some parents opt to offer employment benefits like vacation and sick days,
guaranteed hours, gas or mobile phone stipends or health care stipends to their
nannies as employment perks. Furthermore, certain families provide health care
stipends as an additional perk.

Benefits

Nannies may cost more than babysitters, but their hours and responsibilities often
surpass that of the latter. Furthermore, most are professionally trained with
experience working with children of various ages.
Nannies should receive overtime for any hours worked beyond 40 in one week (as
per the Fair Labor Standards Act), though hourly rates vary based on location, level
of education/background, and cost of living considerations.
Make sure that you provide your nanny with various benefits to ensure they feel
appreciated in their job, such as cell phone bill reimbursement, mileage/gas
reimbursements and parking expenses. Also consider covering health insurance
costs so as to lower overall hiring costs by reducing taxable income; or contribute
pre-tax dollars into an FSA for childcare costs instead.

Taxes

With April 15’s tax deadline fast approaching, families should review their
employment taxes for any domestic employees such as nannies, private teachers,
senior care providers or housekeepers they employ as household employers and are
responsible for paying both federal and state wages taxes as well as employment
taxes on them.
Nannies must receive at least the minimum wage and should receive overtime pay if
hired to work over 40 hours per week – this rate of pay should be 1.5x of what their
regular rate would be.
Employers must withhold 7.65% of nannies’ wages for Social Security and Medicare
taxes and contribute an equal amount. Families must send copies of Form W-2
directly to nannies as well as file Form I-9, Schedule H and 1040-ES with the IRS
quarterly for filing purposes; failing to do so may incur substantial fines or penalties.

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• Nanny cost in the Bay Area is on the rise.
• The average nanny salary in the Bay Area is $25 per hour.
• The cost of hiring a nanny in the Bay Area includes salary, benefits, and expenses.
• The most common nanny expenses in the Bay Area include background checks, hiring fees, and payroll taxes.
• Nanny benefits in the Bay Area can include vacation days, sick days, and health insurance.
• Employers in the Bay Area are responsible for paying nanny taxes, including Social Security and Medicare.
• There are many ways to find a nanny in the Bay Area, including networking with other families and using a nanny placement service.
• Hiring a nanny in the Bay Area is a big decision, but it can be a rewarding experience for both families and nannies.