How are we paying nannies these days?

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Literally was going to comment the same thing 😂

We’re using poppins payroll. They deduct the taxes and everything so we don’t have to do the calculations. If you want to do everything above board, I’d also check your local laws. In Chicago, there needs to be a written contract and paid sick and vacation days. Something that surprised is that some nannies want more money if you pay W-2 vs under the table. I’m an employment lawyer, and just felt way too sketchy doing anything other than W-2, though I know a lot of people who don’t.

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I drafted my own after looking at some online templates for inspiration

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They're supposed to be paid over the table. There's a nanny tax. If you pay them over the table, you can deduct costs from your taxes.

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Homework Solutions is who we use for W2. They handle taxes and everything.

helpful

per diem or like.. full-time live in?

Per diem! Mon - Fri 8AM - 2 PM

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We are going to hire one once baby 2 arrives and are probably going with either Care.com or Poppins payroll for W2 stuff. As someone else said, we also found that doing payroll means a lot of Nannies will want a higher hrly rate to account for taxes.

Per hour

We’re paying our nanny above board as a W2 employee. We guarantee 40 hours a week (we knew we’d need at last 40 with our schedules) + time and a half overtime for anything over 40 although our agency noted some families adjust the rate so that the blended is their desired hourly to account for overtime (we did not feel comfortable with this method). We have outsourced payroll to a third party provider that also has a timekeeping function (still early days to see if we like the provider but happy to update with the name once we know if they’re worth recommending)!

(Noting this is in Chicago)

What rate are you paying?

I’m in a lower COL area and we only have our nanny 2 days a week - she doesn’t drive our child, or have any non-child-related household responsibilities. She has probably 5-7 years experience with childcare, but her education is in social work vs directly in child education/care. We pay $23/hr and plan to bump her up once kid #2 gets here. She won’t be caring for 2 at once almost ever (assuming our childcare plan works lol) but infants are just higher need so we feel a bump is warranted. She gets 5 paid days off/yr. but she’s not here enough that we have to pay for insurance or benefits.

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