Salary Inflation? The Rising Cost of Nanny Care
Here in the greater Washington DC area, we are blessed (or cursed) with below 4% unemployment. Living in DC is expensive, and recent reports indicate that rents are rising more quickly than housing prices.
DC has two other special circumstances: many professionals working for the Federal Government or for firms that do business with the Federal Government and the highest percentage of mothers with children under 2 working outside the home in the country (approximately 60%). The issue of hiring a legal nanny and paying the taxes is stronger here than in any other part of the country. Upwardly mobile professionals don't want to jeopardize their security clearances and get caught violating either immigration or tax laws. This creates tremendous demand for the legal nanny in this market.
Live in salaries for the legal nanny are ranging from $10 - $14 gross per hour, or $450 - 650 per week for a 45 hour work week. Live out salaries have risen even more, with full time nannies earning greater than $40K per year becoming more and more common.
Families are becoming very creative in finding ways to retain these highly compensated nannies. Nanny shares, where two families share the services of one nanny, are becoming more common and parent bulletin boards such as DC Urban Moms are full of nanny share opportunities. A nanny share may be simultaneous (both families' children are cared for at the same time) or sequential (M, Tu, F for one family, W, Th for the other). The nanny hourly compensation is typically 20% higher in a nanny share, but the individual costs to each family are significantly reduced.
DC has two other special circumstances: many professionals working for the Federal Government or for firms that do business with the Federal Government and the highest percentage of mothers with children under 2 working outside the home in the country (approximately 60%). The issue of hiring a legal nanny and paying the taxes is stronger here than in any other part of the country. Upwardly mobile professionals don't want to jeopardize their security clearances and get caught violating either immigration or tax laws. This creates tremendous demand for the legal nanny in this market.
Live in salaries for the legal nanny are ranging from $10 - $14 gross per hour, or $450 - 650 per week for a 45 hour work week. Live out salaries have risen even more, with full time nannies earning greater than $40K per year becoming more and more common.
Families are becoming very creative in finding ways to retain these highly compensated nannies. Nanny shares, where two families share the services of one nanny, are becoming more common and parent bulletin boards such as DC Urban Moms are full of nanny share opportunities. A nanny share may be simultaneous (both families' children are cared for at the same time) or sequential (M, Tu, F for one family, W, Th for the other). The nanny hourly compensation is typically 20% higher in a nanny share, but the individual costs to each family are significantly reduced.
posted by Kathleen Webb at
3:57 PM
2 Comments:
I'm a married, working mom of 1 in Ohio. Our best friends, in a similar situation and us are interested in hiring a nanny to watch both of our boys for 3 days a week. We're trying to comply with all state and federal tax requirements as well as social security and unemployment et al.
I'm trying to find out more information on how nanny shares work, practically speaking from an "employers" point of view. Can you lend me any advice on that? Also give any guidance you can on where to start for nanny share info in Ohio??
Nanny shares are becoming more common. there is a discussion on this here: http://www.4nannies.com/help/sharecare.html
Before you begin looking for a nanny to share, have a frank discussion with the other family as to logistics - see the items in the article - and the hosting family (ies) should discuss this with a licensed insurance agent to cover any liability concerns.
Both families will be 'employers' to the extent that the individually pay the nanny. Families host all in one home, alternate homes by week or month, and any possible variation you can imagine. You truly craft the situation to meet your needs.
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