Full-Time Nanny Salary
Salaries of Full-Time Nannies
There are many factors that contribute to determining the salary of a full-time nanny. In addition to the family’s childcare budget, geographical location and the nannies schedule, duties and responsibilities significantly affect a nanny’s salary. The qualifications of a nanny, as well as her education, experience and skills set also play a significant role in determining the nanny’s salary.
According to the 2012 International Nanny Association Nanny Salary and Benefits Survey, full-time nannies in the United States earn on average, $700 gross per week. Each year INA publishes the results of its salary and benefits survey at www.nanny.org. Reviewing the results can help parents determine the current salaries of nannies in their area.
Full-time nannies work in average, 40 to 60 hours per week. Since nannies are non-exempt employees and covered under the Fair Labor Standards Act (FLSA), employers must adhere to specific labor laws and regulations. Under the FLSA, nannies are entitled to be paid for each hour worked. This is true for both live-in and live-out nannies. All live-out nannies, and some live-in nannies, depending on the state where the nanny is employed, are eligible for overtime pay calculated at the rate of 1.5 times the hourly base pay rate for all hours worked over 40 in a 7-day-period.
While nannies and employers often talk in terms of salary, it’s vital to understand that the nanny’s salary must be broken down into straight pay and overtime pay and that the hourly rate of each must be compliant with the Fair Labor Standards Act. Parents and nannies should also always be sure that they communicate if they are speaking in gross or net terms.
Full-time nannies are employers of the parents for whom they work and are not independent contractors. Parents who misclassify their nannies as independent contractors and get caught can be subject to fees and penalties. As such, nanny employers can expect to pay about 10% of the nanny’s gross salary to mandatory taxes and insurances. Those who are complaint may be eligible for tax credits and savings that can negate the additional out-of-pocket expense.
In addition to salary, nanny employers can expect to provide benefits to their employee. Typical nanny benefits include paid vacation time, paid sick days, paid personal days and partial or full contribution to the nanny’s health insurance premium. Offering employer paid health insurance is a pre-tax dollar benefit which can save employer and nanny money since the money paid towards health insurance isn’t considered taxable income.
Typical nanny duties in addition to providing childcare include talking responsibility of all tasks related to providing that care. This includes doing the children’s laundry, preparing meals and snacks for the children and keeping the children’s areas neat, clean and organized. Nannies who agree to do additional tasks, such as the family’s laundry or meal preparation generally require a higher rate of compensation.
Nannies who specialize in caring for multiples or newborns or those who work exclusively with high needs children may also demand higher salaries. Nannies with college degrees or formal nanny training may also command higher wages.
10 Things to Consider When Calculating the Salary of a Full-Time Nanny
Once parents have decided to hire a nanny, the next step is to determine the nanny’s salary. Here are some things to consider when calculating a nanny’s salary:
- Where the family lives. The region in which parents live is a probably the biggest factor to take into consideration. If a family lives in a major metro market such as New York, Washington DC, Boston, Atlanta, San Francisco or Seattle, parents can expect to pay higher wages. Parents should investigate what nannies are earning in their area to determine current market value.
- The nanny’s schedule. Since live-out nannies and some live-in nannies are required to be paid overtime, parents must carefully consider their nanny’s work schedule when determining her salary to be sure its compliant with the Fair Labor Standards Act.
- Living arrangements. As part of their salary package, live-in nannies receive free room and board. At minimum, live-in nannies should have a private bedroom and bathroom. Live-in nannies earn slightly less than live-out nannies.
- Responsibilities and tasks. Decide exactly what the nanny will be expected to do–whether it will be strictly caring for the children, or will include household tasks such as fixing meals for the family. The more duties she has, the more she typically gets paid.
- Perks. Some nannies are willing to accept a lower salary if the perks of the job are worth it. Perks may include exotic travel, use of the health club, membership to the gym and use of a vacation home.
- Experience. The more experience a nanny has the more she will earn. Seasoned nannies can command significantly higher wages than new nannies.
- Education. When it comes to the job market, more education translates to higher wages. It’s no different in the childcare industry. A nanny who has professional training or a college degree typically receives a higher salary.
- Number of children. While nannies are paid per family, not per child, if new children are added to the family during the nanny’s employment, parents can expect to increase the nanny’s salary by 5% or more.
- Benefits. Remember a nanny, like any other full-time employee, typically receives benefits. Typical nanny benefits include paid time off and full or partial contributions to health insurance premiums.
- Special skills. If the nanny speaks a foreign language, can teach a child how to play the harp or has other skills that in demand, parents can expect to pay the nanny higher wages.
By doing some in-depth research and careful consideration, parents can determine an appropriate salary. Parents should also carefully consider their childcare budget to ensure they are able to commit to paying a nanny for at least one year. While most nanny and families have a working relationship for several years, the typical length of most initial family and nanny agreements is one year.
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