10 Hidden Costs of Having a Nanny

Hiring a nanny to take care of the children may seem more beneficial to people than putting them in a daycare facility because these establishments are often highly expensive. After looking into the possibility of hiring a nanny, people find that it just may be a more affordable solution, but they forget to consider a few hidden costs. After they pay the nanny’s salary, they will continue to pay for having this extra person in their homes.

1. Food - Nannies, of course, will need to eat, but people often overlook this fact when they are considering hiring a nanny and they find that the money they are spending on food has increased dramatically. The nanny will be in their homes all day and will sometimes take the children for a treat at McDonald’s and the employers will have to pay for this.
2. Utilities - With another person, more electricity, water and gas will be used, so people can expect to see an increase in these bills. If the nanny is to be a live-in, the increase will be even larger.
3. The Cell Phone - People like to provide their nannies with cell phones so that they can be reached right away if they need to be. They will either have to give the nannies a cellular phone or they will need to pay a portion of the nanny’s current cell phone bills.
4. FICA Taxes - All employers must pay taxes to the federal government for the people that they employ. It is due to the passing of the Federal Insurance Contributions Act and is a tax that is used to provide Medicare and Social Security with the money they need to operate.
5. FUTA Taxes - Employers must also pay the Federal Unemployment Tax Act (FUTA) tax that goes toward funding federal agencies. Part of this tax is what funds the Unemployment Insurance (UI) fund and also provides money for state agencies that help the unemployed find work.
6. Unemployment Taxes - Employers also must pay unemployment taxes to the state on each person in their employ.
7. Help with Taxes - Because people need to make sure that they are paying the correct amount in taxes for their nannies, they may decide to hire an accounting firm to help them, and they will be paying a fee for these services.
8. Insurance and Gasoline Costs - Children often need to be driven places and picked up as well, and the nanny will need a vehicle for this purpose. Employers sometimes provide a car for them to do this, but they also may reimburse their nannies for the mileage if she uses her own car.
9. A Health insurance Policy - People often expect to receive a health insurance policy through their jobs. Employers of nannies may choose to pay part of their nannies premiums to make sure that they can remain healthy.
10. Paying Overtime - If the nanny works any overtime, this will always need to be calculated into their next paychecks.

People have so many things to consider when they are thinking about hiring a nanny. In order to make sure that a nanny is the best choice for them, the best plan would be to calculate what the extra costs would be to see if they fit into their monthly budgets.