Full-Time Nanny Benefits
10 Benefits Offered To Full-Time Nannies
Nannies are professional in-home child care providers and as such often expect and deserve employment benefits. When hiring a nanny and negotiating a contract for employment, offering these ten benefits will help you attract and retain the best candidate for your family.
- Paid Vacation Time. Full-time nannies typically secure two weeks paid vacation per calendar year. Generally nannies take one week off at their employer’s choosing and one week at their own. The work agreement should include any exclusion dates and how much notice is required for requesting vacation time.
- Paid Sick Time. When the nanny gets sick, it is of her benefit and yours for her to stay home and recuperate so that she is at her best capability upon her return to work. Nannies who don’t tend to their minor illnesses can end up taking additional time off from work.
- Health Insurance. Health insurance allows your nanny to receive preventive care and manage ongoing conditions, allowing her to miss less work due to illness. Offering health insurance can be beneficial to employers as well as the cost of premiums fall under non-taxable income.
- Dental and Vision Insurance. Similar to health insurance, offering your nanny dental and vision insurance allows her to seek preventive and emergency care to prevent and treat conditions that interfere with her ability to perform her job.
- Retirement Benefits. From Roth IRA’s to 401K plans, nanny payroll and tax companies now offer retirement savings plans specifically designed for nannies and their employers.
- Use of a Family Car. Your nanny will be driving your children to and from their various activities and appointments. Provide her with a well-maintained car for her own safety and that of your children. If you want her to use her own, be sure she has proper insurance and reimburse her according to the current IRS mileage reimbursement rate.
- Petty Cash. Provide your nanny with petty cash for daily activities. Entry fees to museums and zoos, restaurant bills, parking fees and other costs your nanny will incur while on the clock and with your children should be covered by you.
- Education Reimbursement. Nannies must keep current on trends in early childhood education and childcare. From magazine subscriptions, to taking night classes at the local community college, to attending workshops at the International Nanny Association’s annual conference, there are a vast number of opportunities for nannies to hone their skills and increase their knowledge base. When your nanny education increases, it’s a direct benefit to you and your children as well.
- Meals at Your Home. Allow your nanny the full use of your kitchen facilities so that she can eat a healthful meal along with your children. You’ll want to be sure that your work contract states if you’ll be providing meals and snacks to your nanny or if she’s responsible for bringing her own.
- Personal Time Off. Like any adult, nannies have personal errands and appointments but because of their work hours, it can be challenging to schedule medical and other appointments. Personal time allows nannies to take care of their own business and to deal with the emergencies that come up in life.
Providing your full-time nanny with employment benefits shows that you consider her a valued employee and care about her health and welfare. As an employer, offering benefits to your employee also improves employee satisfaction, retention and work ethic and fosters a long-lasting positive working relationship.
Tax Breaks for Nanny Employers Who Provide Benefits to Full-Time Nannies
When it comes to employee benefits, offering them can be a benefit to a nanny employer as much as it is to their full-time nanny employee. Nanny employers who legally pay their nannies can offer specific IRS approved non-taxable forms of compensation. On these forms of compensation, neither the nanny employer on the nanny employee has to pay taxes. When nanny employers offer non-taxable compensation, they can save money and increase their nanny employee’s net pay, without additional costs.
IRS Approved Non-Taxable Compensation For Full-Time Nannies
Health Insurance. Nanny employers can pay health insurance premiums for their nannies directly to the insurance company or give the money to the nanny to pay her premium. If an employer opts to pay her own premium, the employer must document that the payments were made to the nanny and maintain a current copy of the nanny’s health insurance card as proof of insurance.
Cell Phones. If an employer needs to be able to contact the employee at all times for work-related emergencies or when she is not at work for business related purposes, cell phone coverage may be an approved form of non-taxable compensation.
Educational Expenses. Nanny employers can contribute more than $5,000 towards tuition and books for education at an accredited college or university.
Parking Expenses. Nanny employers can contribute more than $200 month towards onsite parking expenses or parking at a public transportation lot or garage.
Public Transportation Expenses. Nanny employers can provide their nanny with more than $200 per month towards public transportation to and from the employer’s home.
Reputable nanny payroll and tax service providers like HomeWork Solutions can help nanny employer’s structure their payroll to maximize savings at minimal cost.
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