Working Hours of the Nanny

I have been involved in some discussions on hours, duties and compensation recently - it seems more than ususal. Perhaps its the new year and nannies taking stock?

Most full-time nannies work 45 - 50 hours a week - closer to 45 than 50. However, there are some families asking for considerably more - 55 - 60 hours in a 5 day week. The longer hours are generally more highly compensated positions, but on a $/hour calculation they tend to actually work out lower than the norm.

My thoughts?

A 10 hour work day is a lot - especially for the come and go nanny. Make that 11 - 12 hours per day and it can become impossible. Job burnout becomes almost inevitable - when does the nanny have time for a life if she leaves her home at 6 - 6:30 am, works 7 - 7 and gets home around 8?

So how does the family's need get balanced with the nanny's needs?

Some compromise goes a long way. One family decided that they could work out M - Th as 7:30 - 7 and Friday as 7:30 - 2. How? Dad decided he could work from home on Friday afternoons and made it happen. This particular nanny called me after a few weeks of this schedule offering profuse thanks for the idea. She says the early Friday gives her the feeling of a long weekend, and she can get her errands (groceries, banking, etc.) all done on Friday afternoons while most of the world is still at work. She has taken to preparing a special dinner for her boyfriend on Friday evenings - starting the weekend in a companionable low-stess manner.

Another family I spoke to decided they could stagger the parents' work hours. One parent began the day almost an hour earlier. The 7:30 to 6:30 day was shortened by 45 minutes per day for the nanny - bringing her 55 hour work week down to 51 hours - enough to make a difference.

Living and working in Northern Virginia, I am well aware of the long commutes parents endure to get from their nice homes in the suburbs to their jobs closer to the city. Washington DC consistently ranks in the top 5 worse commutes nationwide. I get great satisfaction talking through these issues with parents and nannies and helping them find a solution that works. The goodwill built with a win-win compromise is priceless.

Money and the Nanny Relationship

I have often heard that money, and the control of money, is the root of most marital problems. I would posit here that money is also the root of many nanny: family problems too.

Why? I wrote last week about some families not wanting to pay the employment taxes for their nanny. I have answered a series of emails in the interium with further 'money' problems. The nanny whose employer didn't deduct any taxes for six months and came to her with a $1047 bill for back taxes. The employer who will not reimburse mileage to drive and pick up the child from school daily (160 miles per week) because that expense 'should be covered in the $11/hour salary.' The nanny who worked for 27 months without a raise and was fired when she asked for $100 more per week to care for the newborn twins in addition to the 4 year old. It's not always the employer in the wrong either; plenty of 'nannies' have quit their jobs when they realize that their income is being reported to the IRS and they will have to pay income taxes.

I'm not sure what this is all about. Perhaps the After the Holidays Financial Blues set in this time of year. The family may be worried about the credit card bill for the holidays, or about their own taxes. The caregiver might be taking a good hard look at her finances and realizing something has to give.

Childcare is a huge expense for families. At the same time, child care providers are paid among the lowest wages in the country, many barely above minimum wage. Perhaps some tension around finances is to be expected. The real risk in these situations is the long term damage to the nanny: family dynamic, often resulting in the termination of the nanny's employment and the family's need to spend time and money recruiting a replacement.

1099ing the Nanny...

I receive a lot of correspondence at this time of year about families reporting a nanny's salary via Form 1099. What this means is that the nanny is being treated as an independent contractor, responsible for paying all of her own taxes.

Families perceive this as a convenience - and a money saver. More on that later...

Nannies are confused. When they go to have their taxes prepared, they are shocked by the amount of tax that they owe. Why?

When a nanny receives a 1099, the family has not paid the family's share of the Social Security and Medicare taxes. The nanny is responsible for the 'self employment tax' - in essence both the employee Social Security and Medicare tax contribution and the amount usually contributed by the employer (family). For a nanny earning $400 per week (the low end of the salary scale) the additional tax is $1590!

Reporting the nanny wages on a Form 1099 saves the family from making their contribution to the nanny's Social Security and Medicare - as well as avoiding the state unemployment taxes. The family avoids tax of about $2000 on the $400/week nanny and pushes $1590 of that tax on to the nanny.

The Form 1099 should only be used when the nanny compensation is less than $1400 in 2005. Any nanny earning $1400 or more should require the Form W2, which insures that the family has paid their share of the taxes. IRS regulations specifically state that the nanny IS NOT a contractor, and all nannies earning $1400 or more in the year should be reported via Form W2.

Families, think about this. The nanny cares for your children, enabling you to pursue your professional interests. The nanny salary is already quite low. Pushing this tax burden onto the nanny is not only unfair, but it jeopardizes the nanny: family relationship once the ramifications are known. Families go to great lengths to find a nanny they are comfortable with - is $2000 a year worth loosing the nanny?

We post a very straightforward FAQ about nanny taxes at http://www.4nannytaxes.com/faq/index.cfm. Families and nannies alike are encouraged to become familiar with their respective tax obligations. Families needing help in W2 or other Nanny Tax compliance are encouraged to talk to the staff at HomeWork Solutions (800.NaniTax) to learn about their professional services.

2006 Mileage Reimbursement Rate


The IRS announced that effective January 1, 2006, the standard mileage reimbursement rate will be reduced to 44.5 cents per mile, down from the temporary rate of 48.5 cents that has been in effect since September 1 2005.

Nannies and household staff who are required to use their personal vehicle for work purposes are entitled to mileage reimbursement. HomeWork Solutions recommends that language in the work agreement between the family and employee peg the reimbursement rate to the IRS rate to allow for periodic adjustments. We all know how much more expensive gas and automobile maintenance have become in the last few years. The employee is entitled to reasonable reimbursement for her out of pocket expense as well as maintenance and depreciation.

Employees are NOT entitled to reimbursement for mileage between their home and their employer's residence. However, if the employee drives children to/from school or camp, does routine grocery shopping or errands, or has other required business use of her personal vehicle, this is reimbursable.

Families who use their employee's vehicle to transport their children should pay careful attention to:

• The mechanical condition of the vehicle being used.


• The installation of child safety seats.


• Condition of tires.

The family may consider paying for a periodic safety inspection of the vehicle if not otherwise required by state law.