In the US, there are around 63.1 million parents who have children under 18 in their households. If you’re one of the 63.1 million, then you’ll know how difficult it is to split your time and energy between your kids and other important things like your career, hobbies, and even your spouse.
Every parent needs some help at times, so don’t be ashamed if you feel like you need help. If that’s the case, then hiring a nanny is always a good idea.
If you’re wondering how much to pay a nanny in 2021, then keep reading. We’ll give you a rough guideline in this article.
How Much Do I Pay a Nanny?
At the very least, you should pay your nanny the minimum wage for your area. We say “at the very least” because being a nanny isn’t an easy job, so you should highly consider paying above this rate. They’re the people looking after your children and some household chores, after all.
If you live in a place with a high cost of living, consider raising the rate so your nanny won’t struggle with their wages. For example, you might pay a nanny $23/hour in California but $15/hour in a more rural area/state.
You can also pay them a little less if they’re a live-in nanny, since they’ll be getting room and board from you. On that note, a full-time nanny might take a lower rate than a part-time one because they’ll receive full-time employee benefits and job security.
Of course, you should also pay a nanny more if they have extensive experience and training, as well as education. Just like with any other job, pay should be higher for those with better credentials.
Other things to consider include what household chores they’ll have to do and how many children they need to care for. In general, the more responsibilities they have, the more you should pay a nanny.
As you can see, the nanny pay rate can vary wildly. It comes down to doing some good research and negotiating with your chosen nanny.
Other Important Information
In the majority of cases, nannies are considered employees. There are some exceptions, such as if the nanny is related to you (such as your spouse, parent, or child under 21).
Because of this, you need to make sure their pay is well documented, even if you’re paying your nanny in cash. If this is the case, you can always create pay stubs to document how much they’re paid, and when they’re paid.
You’ll have to pay nanny taxes, which are their Social Security and Medicare (FICA) taxes. This is legally obligated if you pay your nanny over $2,200 in a calendar year.
Know How Much to Pay a Nanny in 2021
Now you know how much to pay a nanny, plus some important legal tidbits.
Make sure you pay your nanny a fair wage and even offer them some benefits and incentives. This will motivate them to take good care of your household and maintain a good relationship for everyone involved.
For more informative articles like this one on how much do nannies get paid, browse the rest of our blog section now.